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Solana News Update: DeFi Faces Security Challenges Amid $2B Surge in Institutional Investment in Altcoins

Solana News Update: DeFi Faces Security Challenges Amid $2B Surge in Institutional Investment in Altcoins

Bitget-RWA2025/11/25 11:06
By:Bitget-RWA

- DeFi sector faces renewed scrutiny after Aerodrome Finance's "front-end attack," urging users to revoke token approvals amid its merger with Velodrome. - Solana (SOL) price drops 5% trigger retail migration to GeeFi, which reported rapid sellout of its token presale amid bearish technical indicators. - Institutional altcoin interest grows, with $2B in planned SOL treasury holdings by DeFi protocols, contrasting retail exodus and cautious derivatives markets. - Legal pressures mount across industries, inc

In November 2025, the decentralized finance (DeFi) industry came under fresh examination when Aerodrome Finance revealed it had suffered a "front-end attack," leading the platform to advise users to steer clear of its primary website and revoke any recent token permissions

. This marked the third such breach since late 2023, highlighting ongoing weaknesses in DeFi systems, even though the AERO token remained relatively steady at $0.67. The incident took place during Aerodrome’s merger with Velodrome, a strategic move aimed at pooling liquidity within the Base and Optimism networks under the unified "Aero" brand.

At the same time, traders turned their focus to

(SOL), where a 5% decline in early November led many retail investors to migrate to up-and-coming projects such as GeeFi (GEE). Within 24 hours, GeeFi had sold out, tapping into Solana users’ appetite for multi-chain functionality. This migration reflected growing doubts about Solana’s near-term outlook, with technical signals indicating a bearish trend. was trading under $130, well below its 50-day EMA of $166, and stood at $6.95 billion—significantly lower than the September high of $17.1 billion—pointing to reduced speculative activity.

Solana News Update: DeFi Faces Security Challenges Amid $2B Surge in Institutional Investment in Altcoins image 0
Despite this, institutional demand for alternative cryptocurrencies remained strong. , supported by DeFi projects like Marinade, revealed $2 billion in planned SOL holdings for corporate treasuries. This move echoed the strategy of early players like MicroStrategy, which has accumulated billions in . However, retail and institutional attitudes diverged: while ETFs continued to attract capital—with SOL ETFs seeing $510 million in total net inflows—derivatives markets reflected a more cautious stance .

The broader technology landscape delivered mixed outcomes. Oil India managed to control a blowout at its Kharsang Oil Field Well 76 after a high-risk intervention involving international experts

. In contrast, Firefly Aerospace following a drop in revenue and an unsuccessful rocket launch, causing its stock to fall by over 20%. Legal challenges also reached the edutech sector, with Byju’s founder Byju Raveendran from a Delaware court over alleged mismanagement of the Alpha Fund.

Regulatory and legal oversight intensified across various sectors. Bragar Eagel & Squire, P.C. began probes into Paysafe and StubHub after disappointing earnings and sharp declines in share prices

, while Genius Group’s 2025 revenue forecast of $15–$18 million signaled confidence in its Genius Cities initiative . Meanwhile, BetaNXT introduced AI-powered enhancements for wealth management, focusing on "augmented intelligence" to support better decision-making.

Amid these shifts, the interplay of DeFi security, institutional involvement, and regulatory developments continued to shape the sector’s path toward greater maturity.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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