Binance Research reported that April’s wave of DeFi exploits drained roughly $13 billion from total value locked (TVL), sharply reducing liquidity across blockchain protocols.
DeFi Liquidity Compression and Leverage Shift
The research arm highlighted that the on‑chain leverage ratio climbed to approximately 38 percent, a level not seen since 2021, as TVL contracted faster than borrowing activity. This rise did not stem from a resurgence in genuine borrowing demand; instead, the smaller pool of locked capital amplified the debt ratio.
Binance Research noted that “meaningful deleveraging has yet to materialize,” even as the broader crypto market retraced. Consequently, each dollar of debt now exerts a heavier influence on the system, pressuring investors who rely on stable TVL metrics.
Record‑Setting Hack Activity in April
According to Binance’s May market report, DeFi TVL slipped 10.7 percent month‑over‑month, landing at $82.7 billion for April, while exploit losses reached $635.24 million—the highest monthly total since the Bybit breach in February 2025.
DefiLlama logged 28 separate hack events throughout the month, a figure Binance described as a record. In the first half of April alone, more than $606 million vanished across 12 incidents, with the largest attacks targeting the Drift and KelpDAO protocols.