Bitcoin News Update: DeFi Faces Confidence Challenge as $110M Balancer Breach Exposes Widespread Weaknesses

Balancer Suffers $110 Million DeFi Pool Hack, Triggering Market Chaos and Emergency Measures

The event was initially detected by a

.

An extensive exploit targeting Balancer’s DeFi pools has resulted in the loss of more than $110 million in digital assets, ranking among the most significant DeFi hacks of 2025. Initial estimates put the stolen amount between $70–88 million, but as the attacker continued moving funds across several blockchains, losses have now surpassed $128 million, according to PeckShield and blockchain analytics firm Nansen, as cited by

. The attack affected Balancer’s v2 pools, which include tokens like WETH, osETH, and wstETH, sparking a steep decline in the token and a broader downturn in the crypto market, according to Cryptoticker.

The aftermath of the hack also impacted projects forked from

, such as Beets Finance, which confirmed its own v2 pools were compromised, as reported by . CoinDesk also noted that , a blockchain network, paused operations to contain the breach and announced an “emergency hard fork” to prevent further damage. Balancer’s official channels confirmed the incident, stating that their engineering and security teams were treating the matter as a top priority.

Markets reacted swiftly and sharply. The BAL token dropped more than 10% in a single day, trading close to $0.90, while

($BTC) slipped below $108,000 amid widespread DeFi anxiety. Investors scrambled to reduce risk in altcoins, intensifying sell-offs in ($ETH), ($SOL), and ($BNB), as highlighted by Cryptoticker. Blockchain data showed that a previously inactive wallet withdrew $6.5 million during the exploit, reflecting a rush among holders to safeguard their assets, Coinpedia reported.

This vulnerability at Balancer has intensified concerns about the safety of multi-chain DeFi platforms. PeckShield suggested the exploit may have resulted from either a compromised administrative key or a flaw in a shared contract, noting the attacker’s coordinated asset transfers across Ethereum’s mainnet and Layer 2 networks, according to

. The report described the event as “just another Monday in crypto,” underscoring the sector’s persistent issues with liquidity and trust.

Investor confidence has become more cautious, with analysts predicting extended repercussions. Crypto analyst Ted Pillows advised users to steer clear of affected pools until the situation is resolved, as mentioned by Coinpedia. Technical analysis of the BAL token points to a bearish trend, with support expected between $0.88–$0.90 and resistance at $0.95–$1.00, according to Cryptoticker. Continued panic could push the token down to $0.80, but stabilization near current prices may indicate a short-term bottom if Balancer implements a recovery strategy.

The breach has also highlighted deeper vulnerabilities in DeFi security systems. Risk monitoring platforms now show that total DeFi losses in 2025 have exceeded $2.8 billion so far, forcing protocols into crisis mode, according to U.Today. Balancer’s previous incidents—including a $500,000 hack in 2020—demonstrate the ongoing risk of sophisticated attacks in the sector, Coinpedia observed.

Regulators and institutional players are closely watching the fallout and its implications for DeFi adoption. The hack comes as Japan explores using bitcoin mining to stabilize its power grid, as detailed in

. While governments test blockchain for energy management, DeFi’s instability continues to hinder institutional confidence.

How Balancer handles the crisis will be pivotal for its future. The protocol must act quickly and transparently, as any delay could further undermine user trust. For now, the DeFi industry faces heightened scrutiny, with increased withdrawals and calls for audits following the breach, U.Today reported.

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