Stellar’s DeFi TVL Plunges 60% Following Major Exploit, XLM Holds Key Support

Stellar’s DeFi ecosystem experienced a dramatic downturn this week as its total value locked (TVL) fell sharply from a peak of $270 million on August 22, 2026, to approximately $98 million by August 27, according to data from DefiLlama. The steep decline was triggered by an exploit targeting the Comet AMM BLND-USDC liquidity pool that supports the Blend protocol.

Exploit Drains Millions as Blend TVL Collapses

The incident resulted in an estimated loss of $717,000 through a same-asset USDC swap accounting vulnerability. This breach caused Blend’s TVL to plummet from over $150 million to near zero, forcing the backstop pool to pause operations temporarily. The exploit represents one of the most significant security incidents in Stellar’s DeFi landscape to date.

Despite this significant setback in its DeFi sector, Stellar’s tokenized real-world asset (RWA) market continues to expand, reaching over $3 billion in value. This growth highlights a notable divergence between the network’s strong underlying fundamentals and the vulnerabilities present in specific DeFi applications.

From a price perspective, Stellar Lumens (XLM) declined by 2.82% to trade around $0.18, though it has managed to hold above key support levels for eight consecutive days, as reported by SoSoValue’s price tracking data.

XLM Trading Above Supertrend as Market Assesses Damage

At current price levels, major XLM holders appear uncertain about the depth of the recent correction. Technical indicators show the Chaikin Money Flow (CMF) trending slightly negative on both 4-hour and daily charts, while the 1-hour XLM price chart suggests a potential neutral trend shift pending renewed buyer interest.

XLM is currently trading roughly one cent above the SuperTrend indicator level of $0.1707, providing a slight bullish advantage. In derivatives markets, short positions dominated with $191.33K in liquidations out of a $205.61K 24-hour total, despite the altcoin’s open interest weighted funding rate remaining positive for ten consecutive days.

Looking ahead, $0.195 represents the nearest bullish target for XLM. The token maintains a strong positive correlation with Bitcoin (BTC), which pulled back to $78,700 on Friday evening. Mirroring Bitcoin’s approximately 2% decline over the same period, Stellar Lumens has preserved a 5% price increase over the past 30 days.

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