JPMorgan cites DeFi hacks and flat ETH TVL limiting institutions

JPMorgan research warns that repeated DeFi protocol exploits and largely flat ETH‑denominated total value locked (TVL) are curbing institutional interest in decentralized finance. The bank links persistent security incidents and stagnant ETH TVL to weaker willingness among large investors to allocate funds to DeFi, raising questions about DeFi’s ability to scale for institutions. Market impact: reduced institutional demand and higher perceived risk could weigh on ETH and related DeFi tokens, slow inflows into ETH‑based DeFi products, and keep a risk premium on crypto assets until security and TVL growth improve.