Binance Report: These DeFi Levels Were Last Seen During the Bull Run

Recent data released by Binance Research shows that decentralized finance (DeFi) exploits in April resulted in $13 billion in outflows, and the on-chain leverage ratio has returned to 2021 levels at 38 percent.

Security breaches and capital movements continue to shift the ecosystem’s balance in cryptocurrency markets. The latest report prepared by the Binance Research team revealed that the DeFi protocol exploits in April caused a significant shock to the market. During this period, while billions of dollars flowed out of protocols, technical data reflecting investor risk appetite and market indebtedness reached a noteworthy point.

According to the report, approximately $13 billion worth of assets left the system as a result of the attacks. This situation led to a rapid contraction of the total value locked (TVL) in protocols. Along with the decrease in assets, the on-chain leverage ratio—which represents the ratio of active loans to total liquidity—climbed to 38 percent. The shared chart data shows that this ratio was last this high in 2021, when the last bull market occurred.

DeFi Ecosystem Leverage Ratio at 2021 Levels

Experts emphasize that this increase in the leverage ratio does not stem from actual borrowing demand. On the contrary, the decrease in the total amount of assets in the system has artificially inflated the ratio of existing debt. Despite recent market pullbacks, the deleveraging process, in which investors tend to close their risky positions, has not yet fully materialized.

When the chart is examined, it is observed that the leverage ratio, which fell below 30 percent in early 2023, has entered a steady upward trend since 2024. Projections extending to June 2026 data prove that the market’s risk balance is at a delicate point. It is critically important for DeFi users and investors to closely monitor liquidity conditions and changes in total assets within the system.