A report by blockchain security firm Hacken reveals a significant shift in the cryptocurrency security landscape in 2024. Decentralized finance (DeFi) protocols have seen a steep decline in exploits, while centralized finance (CeFi) platforms have more than doubled their losses due to security breaches.
Hacken’s annual “Web3 Security Report” shows that total losses from security failures in 2024 reached $2.91 billion. DeFi protocols accounted for $474 million in losses this year, a 40% decrease from $787 million in 2023. This decline is due to the growing adoption of advanced security techniques like zero – knowledge cryptography and multi – party computation across the DeFi ecosystem.
A key factor in the reduction of DeFi exploits is the sharp drop in cross – chain bridge hacks. Losses from these attacks decreased from $1.89 billion in 2022 to $338 million in 2023 and further to $114 million in 2024.
In contrast, CeFi platforms, including crypto exchanges, reported $694 million in losses in 2024, more than double the $339 million in 2023. CeFi accounted for nearly one – third of all crypto – related incidents, highlighting ongoing weaknesses in centralized systems.
Gaming and metaverse projects were major targets in 2024, responsible for nearly 20% of all crypto – related hacks, with losses amounting to $389 million. The largest such breach was the PlayDapp exploit in Q1 2024, resulting in a $290 million loss.
Phishing scams also remained a significant issue, causing over $600 million in losses. The November $129 million address poisoning attack is an example of the increasingly sophisticated social engineering tactics in the Web3 space.
Memecoins, which were popular in 2024, especially on the Solana blockchain due to low transaction costs, were often used to prey on investors through presale scams and celebrity – endorsed rug pulls. The Hawk Tuah memecoin, launched by Hailey Welch, saw its value plummet 95% after launch, drawing criticism from the Web3 community.
This rise in memecoin – related scams emphasizes the need for better investor education, especially when dealing with speculative assets. At the moment, Bitcoin (BTC) is trading at $98,921, having increased 5.8% in the past 24 hours.
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