Balancer Protocol Exploit Results in Over $98 Million Loss

Balancer, a prominent DeFi protocol with over $700 million in total value locked (TVL), has experienced a significant exploit. Attackers drained more than $98 million across multiple chains, focusing on Balancer liquidity pools.

The breach involved high-value assets like wrapped ETH and liquid-staking derivatives.
Funds were quickly routed through mixing services and bridge networks, indicating a sophisticated operation.
This marks one of the largest DeFi breaches in 2025, raising concerns about protocol security and cross-chain risks.

The attack led to substantial losses, including:

6,587 WETH (~$24.46 million)
6,851 osETH (~$26.86 million)
4,260 wstETH (~$19.27 million)

The exploit underscores vulnerabilities in liquidity-pool architecture and adds pressure to an already fragile crypto market, particularly affecting Ethereum.

Market Impact

Ethereum is experiencing selling pressure, struggling to regain key levels amidst broader market weakness.
The incident highlights ongoing smart-contract risk challenges, amplifying investor caution.

Balancer (BAL) Token Performance

BAL trades near $0.97, close to multi-year lows, under heavy selling pressure.
The token's price trend has been downward since mid-2024, failing to recover key moving averages.
Bulls need to reclaim the $1.20–$1.40 range and surpass the 50-week moving average to reverse the downtrend.

Overall, the Balancer breach represents a critical test for confidence in the Ethereum and DeFi ecosystem.