The value of crypto assets stolen by cybercriminals in 2023 decreased by more than 50% compared to the previous year, attributed to a significant decline in hacking incidents targeting decentralized finance (DeFi) platforms, according to a recent report by blockchain analysis firm Chainalysis.
The report highlights that hackers only managed to steal $1.1 billion from DeFi protocols in 2023, down from $3.1 billion in 2022 and $2.5 billion in 2021. Additionally, the number of DeFi hacks decreased by 17.2% year-over-year, and the median loss per DeFi hack dropped by 7.4%.
Mar Gimenez-Aguilar, a lead security architect and researcher at the blockchain security company Halborn, emphasized that the decrease in value stolen from DeFi platforms indicates that operators are implementing improvements in smart contract security. Furthermore, the overall decline in DeFi activities last year meant that hackers had fewer protocols to target.
However, Chainalysis also highlights the potential consequences of the decline in DeFi activities, stating that if the decrease is indeed the primary reason for the drop in hacking losses, it will be crucial to monitor whether DeFi hacking rises again in conjunction with another DeFi bull market. This could lead to a higher total value locked (TVL) and present a larger pool of DeFi funds for hackers to target.
This data suggests that the security measures and the evolution of the DeFi ecosystem play a crucial role in deterring cybercriminal activities targeting DeFi platforms. As the industry continues to evolve, it will be important for operators to prioritize security practices to safeguard against potential threats.
