Ethereum's portion of global DeFi total value locked (TVL) fell from 63.5% in January 2025 to 53% by May 2026, even as it still holds about $45.50 billion in TVL. Over the same period, Solana (6.76%), BNB Chain (6.55%), Bitcoin (6.16%), Tron (6.01%), Base (5.31%), and Hyperliquid (1.82%) increased their shares, leaving non-Ethereum chains at roughly 47% combined. A May 9 post from Base creator Jesse Pollak highlighted the multichain ambition, writing, "bring every financial instrument onchain."

TrustedVolumes, an Ethereum-based liquidity provider, said a hacker stole about $5.9 million on Thursday by exploiting a weakness in its custom order-settlement setup. The funds reportedly included 1,291 WETH, around 16.9 WBTC, roughly 206,000 USDT, and just under 1.27 million USDC. Both 1inch and Blockaid stated the 1inch protocol was not compromised and that no 1inch user funds were impacted.

Iran entered the final night of February 2026 amid a near-total internet shutdown, yet the Iran-based crypto exchange Nobitex continued operating without interruption. Analysts estimate the platform routes billions in flows, including about $5 billion in observed volume between 2025 and March 2026, while Nobitex says it serves roughly 11 million users. The exchange has been tied by multiple investigations to sanctions-evasion mechanisms and high-risk counterparties, raising questions about why it has not been individually added to OFAC's SDN List.

LayerZero said Friday it mishandled communications in the three weeks after the April 18 Kelp DAO bridge exploit that drained about $292 million in rsETH. The company also acknowledged it should not have permitted its DVN to operate as a sole verifier for high-value transactions and announced security changes, including ending support for 1/1 DVN configurations.

Layerzero Labs said Friday its internal RPC “source of truth” was poisoned during the KelpDAO breach, alongside a DDoS hit on an external RPC provider. The firm said the incident affected one application—0.14% of apps and about 0.36% of protocol-associated asset value—and it is moving defaults to a 5/5 DVN setup while ending support for 1/1 DVN configurations.

Tokenized real-world assets have climbed to more than $30B, with roughly $15B—nearly half—represented by U.S. Treasury debt. The sharpest increase appears in the latest stretch, rising from about $20B in January 2026 to $30B by May 2026, meaning the most recent $10B was added in around five months.

A Manhattan federal judge allowed Arbitrum DAO to transfer $71 million in frozen Ether to Aave, while keeping terrorism victims' claims attached to the assets. The order, issued Friday by Judge Margaret Garnett, amends a restraining notice so an onchain vote can move the funds to a wallet controlled by Aave LLC and shields participants from violating the freeze.

The crypto industry is watching the U.S. Senate Banking Committee's May 14 markup of the CLARITY Act, after the House advanced the bill with a 294-134 bipartisan vote. Polling cited in the report shows 52% support for the measure and 62% favor stronger U.S. leadership in digital assets, while unresolved stablecoin language and ongoing Senate talks could still slow institutional participation.