A recent analysis by cybersecurity authority SlowMist has disclosed that the Ethereum (ETH) network has encountered a staggering $400 million in security breaches thus far this year, marking a significant 50% surge in cryptocurrency hackings.
The semi-annual dossier from SlowMist for the year 2024 positions Ethereum as the most impacted ecosystem in terms of financial losses due to security breaches, with layer-2 scaling platforms Arbitrum (ARB) and Blast trailing behind.
“Evaluating the ecosystems, Ethereum stands out with the heftiest financial toll, reaching $400 million. This is succeeded by Arbitrum, which faced a deficit of $72.46 million, and Blast, which endured a $70 million shortfall.
Moreover, the Binance Smart Chain (BSC) recorded the peak number of security breaches, amassing 57 incidents and financial repercussions amounting to nearly $32.12 million.”
The research indicates that the digital asset domain witnessed 223 security breaches in the initial half of 2024, culminating in a total loss of $1.43 billion. This figure marks a substantial escalation of over 50% compared to the $920 million lost in the same period of the previous year.
SlowMist further highlights that decentralized finance (DeFi) remains the most vulnerable sector within the cryptocurrency realm, constituting almost 71% of all breaches in the first half of the year.
“Looking at the project trajectory, DeFi emerges as the most susceptible to attacks. The first six months of 2024 saw 158 DeFi-related security breaches, which represent 70.85% of the overall incidents, with financial damages totaling $659 million.
This signifies a 37.29% year-over-year inflation in losses, in comparison to the first half of 2023, which recorded 111 incidents and approximately $480 million in losses.”
Per SlowMist’s findings, the primary culprits for these exploits are contract vulnerabilities and fraudulent exit schemes, responsible for 56 and 50 incidents, respectively.
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