The market for stablecoins and tokenized funds on Ethereum has declined by 19% since April 2026. The total valuation fell from $206.7 billion to approximately $168 billion by early November 2026.
The downturn followed a security breach at KelpDAO on April 18, 2026, where attackers stole approximately $292 million in rsETH. The exploit involved compromising a single LayerZero decentralized verifier node to mint unbacked tokens.
The incident triggered liquidity issues across major lending protocols, including Aave. Total value locked across DeFi protocols dropped by $8–14 billion immediately following the attack.
As of November 9, 2026, the stablecoin supply on Ethereum is approximately $135 billion, with tokenized funds comprising the remainder of the total market capitalization.
Evercrest Technologies, the parent company of KelpDAO, filed a lawsuit against LayerZero Labs and its CEO on November 9, 2026, alleging negligence and security failures. LayerZero Labs has attributed the attack to the Lazarus Group.
