DeFi Exploits Plunge 40% In 2024, But Centralized Exchange Losses Soar – Report
according to a Report A report released today by blockchain security company Hacken shows that the number of exploits in decentralized finance (DeFi) protocols dropped sharply in 2024, while losses from security vulnerabilities on centralized finance (CeFi) platforms more than doubled.
DeFi platforms demonstrate better security mechanisms
In its annual “Web3 Security Report,” Hacken outlines overall trends in the cryptocurrency industry regarding scams and security infrastructure. The report states that total losses due to security failures in 2024 will reach $2.91 billion.
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DeFi protocols have lost $474 million this year, down 40% from $787 million in 2023. This sharp decline reflects the increasing adoption of advanced security technologies such as zero-knowledge encryption and multi-party computation across the DeFi ecosystem.
A key factor contributing to the decline in DeFi vulnerability exploitation is the sharp decline in cross-chain bridge hacks. Losses from these attacks continue to decline—from $1.89 billion in 2022 to $338 million in 2023, and ultimately to $114 million in 2024.
In comparison, CeFi platforms, including cryptocurrency exchanges, reported losses of $694 million in 2024, more than double the $339 million in losses in 2023. CeFi accounts for nearly a third of all crypto-related incidents, highlighting the ongoing vulnerabilities in centralized systems.
Gaming and Metaverse projects were another major target in 2024, accounting for nearly 20% of all crypto-related hacks, resulting in $389 million in losses. The biggest gaming/metaverse leak of the year was the PlayDapp breach in Q1 2024, which caused $290 million in damage.
Phishing scams remain a significant problem, causing more than $600 million in losses this year. These scams highlight increasingly sophisticated social engineering tactics in the Web3 space.
In November, the industry faced a $129 million address poisoning attack. For context, address poisoning phishing involves an attacker sending small transactions from an address that is very similar to one the victim has interacted with, tricking them into mistakenly sending funds to a fraudulent address in future transactions.
Memecoins and Rugpulls continue to prey on users
Although meme coins are all the rage For most of 2024 – especially on the Solana (SOL) blockchain because it low transaction costs – Much of which preys on investors through pre-sale scams and celebrity-endorsed carpet pulling.
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One famous example is the Hawk Tuah memecoin, launched by viral influencer Hailey Welch, popularly known as “Hawk Tuah Girl.” coin value plummet It reached 95% shortly after release, sparking a backlash from the wider Web3 community.
The rise in memecoin-related scams also highlights the need for greater investor education, especially when it comes to such speculative assets. At press time, Bitcoin (BTC) was trading at $98,921, up 5.8% in the past 24 hours.
Featured images from Unsplash, charts from Tradingview.com
