However, while the number of successful hackers has been decreasing, the damage they have done to the industry has certainly not. The data shows that the average number of stolen crypto hacks has increased by 206% compared to the 2021 average.
Number of crypto hackers is down, but damage is up
According to research shared with CryptoSlate, there will be 251 hacks in 2021, with approximately $3.2 billion worth of cryptocurrency stolen. This year, some $1.7 billion was stolen from the industry in just 65 security breaches through mid-June.
"While the number of crypto-related hacks will drop sharply in 2022, this will not affect the total amount stolen, despite the decline in crypto prices this year," the report said.
Ratio of number of hackers to total value stolen between 2019 and 2022 (Source: BestBrokers)
The latest data from ChainAnalysis shows that the average amount stolen per crypto hack this year is $26.6 million, a 206% increase from the 2021 average of $12.9 million. This figure is even higher than the average of $4.7 million stolen per hack in 2020, an increase of 465.9%.
Average dollar amount stolen per cryptocurrency hack, 2019-2022 (Source: BestBrokers)
Researchers believe that hackers have been targeting and successfully hitting larger targets in 2022. The DeFi market appears to be a favorite target for hackers, as they are often able to reap the greatest returns from decentralized protocols.
In 2021, about 72% of cryptocurrency thefts are caused by DeFi protocols and services. This year, that percentage has risen to a staggering 97%.
According to Robert Hoffman, a cryptocurrency analyst at BestBrokers, DeFi has become a top target for hackers due to the influx of venture capital funds into the market. The competitive nature of the market means that the protocols that launch first will have the greatest chance of success.
Hoffman explained: [The race to build a Fourth Industrial Revolution digital financial system is fast, with many stakeholders vying to be first. Often, when the time-to-market is too short, this results in some aspects of the product being compromised. damage, including safety."
The technical nature of smart contracts and the expertise required to program them leaves a lot of room for manipulation. However, Hoffman believes that once DeFi becomes mainstream, most of its security issues will be resolved, "just like any new technology with mass adoption."