$ETH DeFi shows structural stress signals
KelpDAO exploit → ~$292M fake collateral
~$200M bad debt across protocols
TVL “recovered” in USD
but in $ETH terms → still flat
Price is masking weakness
not fully restoring confidence
Capital rotated to $USDT
waiting for clearer signals
Institutional view remains cautious:
security risk + flat real TVL = limited allocation
Cross-chain bridges still the main risk vector
Short term: cautious
Long term: depends on security improvements