Since the beginning of the year, the number of cryptocurrencies has decreased significantly. According to a recent BestBrokers study, there were 64 security breaches in the industry in mid-June, a sharp drop from 251 breaches last year. However, while the number of successful hacks is declining, the damage they have done to the industry is certainly not. The data shows that the average amount stolen in a crypto hack has increased by 206% compared to the 2021 average. According to research shared with CryptoSlate, a total of 251 hacks stole $ 3.2 billion in cryptocurrencies in 2021.
Just 65 security flaws this year resulted in the sector losing approximately $ 1.7 billion by mid-June. The average amount taken in a cryptocurrency breach this year was $ 26.6 million, according to the most recent Chainalysis statistics. This is a rise of 206 percent from the average of $ 12.9 million in 2021. In contrast, the average amount of money stolen per attack in 2020 was $ 4.7 million, a 465.9 percent increase. According to researchers, greater targets will be successfully attacked by pirates in 2022. Given that they can frequently benefit greatly from decentralised protocols, hackers appear to prioritise the DeFi market as a target. In 2021, DeFi protocols and services will account for 72% of all stolen cryptocurrency.
This year, this percentage has risen to 97%. Robert Hoffman, a cryptocurrency analyst at Best Brokers, said DeFi has become a major target for hackers because of the large amount of venture capital money pouring into the market. The competitive nature of the market means that protocols that launch first have a better chance of succeeding. The technical nature of smart contracts and the expertise needed to program them leave a lot of room for manipulation. However, Hoffman believes that once DeFi becomes mainstream, many of the security issues will be resolved “like the massive adoption of any new technology.”