DeFi exploit losses dropped significantly to $1B in 2024, showing improved protocol security.
April 2021 had peak losses of $2.5B due to mechanism flaws, highlighting DeFi’s early risks.
Terra/Luna’s $50B collapse underscored risks in algorithmic stablecoins, impacting DeFi trust.
Losses from exploits in decentralized finance (DeFi) have decreased in 2024, with reported losses hovering just around $1 billion. This is a marked improvement over previous years, when the industry faced numerous breaches.
With only $1 billion lost to exploits this year, 2024 is on track to see a significant decline in DeFi-related losses compared to previous years. pic.twitter.com/73SZHspcoF
— IntoTheBlock (@intotheblock) October 25, 2024
Data on “Value Lost to Exploits (Excluding Terra)” from July 2020 to October 2024 shows changes in crypto asset losses, with theft activities increasing through 2021 and 2022. The reduced exploit-related losses in 2024 suggest that security improvements in DeFi protocols are working, with recent losses falling below $250 million.
Analysis of DeFi Exploit Losses Over Time
Since July 2020, the crypto market has suf…
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