Balancer DeFi Hack: $116M Loss Spells Trouble for the Veteran Protocol

2025-11-03 09:03:28

Balancer, a long-standing DeFi staple, has been hit by a devastating V2 multi-chain pool exploit, resulting in losses exceeding $116 million and raising serious questions about the protocol’s viability.

The Attack: V2 Pool Vulnerability Exposed

The exploit targeted Balancer’s V2 pools across multiple chains, draining mainstream assets like osETH and WETH in large volumes. Hackers exploited a contract flaw, siphoning funds and causing TVL to plummet as liquidity fled. The V3 version remains unaffected, but the breach has eroded trust, with the team yet to fully mitigate the issue. As DeFi TVL holds at $150 billion+, this incident underscores the persistent risks in mature protocols.

Loss Scale: Over $116 million; osETH, WETH heavily impacted.
TVL Impact: Sharp decline; liquidity exodus.
V3 Status: Unaffected; V2 focus of attack.

Market Reaction: TVL Drain and Credibility Hit

Balancer’s TVL has collapsed, with the hack accelerating outflows and sparking fears of further vulnerabilities. The protocol’s reputation, built on its AMM innovation, now hangs in the balance, as users question long-term sustainability. Community sentiment on X is 80% bearish, with calls for audits and potential forks.

2025 Balancer Price Prediction: $1-$2 BAL Consensus

Balancer price prediction for 2025 is cautious, targeting $1-$2 for BAL. Changelly sees $0.80-$1.00; CoinDCX $1.50. Bull catalysts: V3 recovery; bear risks: exploit fallout testing $0.50 support.

For investors, how to buy Balancer via compliant platforms ensures entry. How to sell Balancer and how to cash out Balancer offer liquidity. Sell Balancer for cash and convert Balancer to cash enable fiat conversions.

Trading Strategy: Cautious Longs with Stops

Short-term: Long above $0.70 targeting $1.00, stop $0.60 (14% risk). Swing: Accumulate dips, staking for 5% APY. Watch $0.80 breakout; below $0.60, exit.

In summary, Balancer’s $116 million hack and TVL drain signal a precarious future, urging caution for 2025’s DeFi recovery.

BAL-6.71%

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