A recent $26.6 million DeFi exploit has renewed concerns around smart contract risk and ecosystem exposure. While Ethereum itself was not breached, the incident triggered defensive selling across DeFi, sending ETH below $3,100. The exploit revived worries about smart contract risk, and money quickly moved to the sidelines.
DeFi activity dipped, with total value locked sliding by about 1.2% as traders cut exposure. Price action reflected that caution. ETH dropped below $3,120 and couldn’t stay above the 100-hour average near $3,180.
Selling picked up through the day, and close to $97 million worth of positions were wiped out, mostly from traders who were positioned long. Ethereum at $3,100 reflects strength and maturity, but also slower growth and continued exposure to DeFi risk and leverage cycles. It remains essential infrastructure, yet price action shows that large-cap assets can spend long periods consolidating.
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