DeFi's institutional appeal remains limited due to persistent exploits and stagnant total value locked (TVL), according to JPMorgan. The bank notes that recurring hacks have led investors to favor stablecoins like Tether's USDT, as they withdraw funds from DeFi protocols during times of stress1. This trend suggests that the lack of security and stability in DeFi is driving investors towards more established and perceivedly safer alternatives. The stagnant TVL is also a concern, as it indicates a lack of growth and adoption in the DeFi space. As a result, institutional investors are hesitant to enter the market, citing concerns over security and regulatory uncertainty. The shift towards stablecoins like USDT may have implications for the broader blockchain ecosystem, affecting both technical architecture and regulatory positioning. This hesitation from institutional investors matters to practitioners, as it highlights the need for improved security and stability in DeFi to increase its appeal to major investors.