Stellar DeFi TVL Plummets 60% After $717K Blend Protocol Exploit
The Stellar DeFi sector experienced a significant decline in its total value locked (TVL) due to an exploit targeting the Comet AMM BLND-USDC liquidity pool. The TVL dropped from $270 million on August 22, 2026, to approximately $98 million by August 27, representing a 60% decline.
The exploit resulted in a loss of around $717,000 from the pool, prompting Blend protocol operators to pause its backstop pool. This led to a sharp fall in TVL for the broader Stellar DeFi landscape.
Despite the setback, Stellar's network fundamentals appear strong, with the tokenized real-world asset market on Stellar exceeding $3 billion. Stellar Lumens (XLM) traded down by 2.82% to $0.18 after the exploit but has managed to sustain levels above its major support area for eight straight days.
XLM's price action has shown resilience amid the exploit, remaining above $0.18 for over a week and sustaining a 5% gain over the past 30 days.