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More than $1 billion stolen from the DeFi market

This year, hackers have already stolen a total of more than $1.22 billion from the DeFi market. The Solana Wormhole Bridge and the Ronin network lost $320 million and $625 million, respectively. According to experts, computer hacks will continue as the DeFi market grows.

Big losses recorded in the DeFi sector

The DeFi sector recorded a lot of losses at the beginning of 2022 due to hackers. The latter have indeed stole more than $1.22 billion in this market. This figure is much higher than the $154 million lost in the DeFi space during the first quarter of 2021.

It must be said that the DeFi sector has developed significantly since the beginning of 2021. Data aggregator Defi Llama estimated the current total value of funds blocked through different smart contracts at $227.84 billion. Which is lower than last year’s $80 billion.

Apart from that, we are witnessing the growth of DeFi applications and non-fungible tokens (NFTs). This also increases the use of the blockchain. This increase has caused a rise in transaction fees on Ethereum (ETH), the largest blockchain in the DeFi industry.

By the way, Ethereum (ETH) and the Solana Wormhole bridge have been victims of hacks. They caused them to lose more than $320 million in February. Then, at the end of March, the Ronin Network lost about $625 millions during a hack.

We need to strengthen security to stop hackers

In reality, hackers will continue to attack the DeFi space if security is not strengthened there. It turns out that most of the hacks were the result of poor security. It must be said that these are especially the new projects of the DeFi sector that are targeted by hackers. This is due to the fact that these projects have lower security audits.

That said, Mitchell Amador, CEO and founder of Immunefi, explained: “ We should expect that these types of (sophisticated) attacks will continue to increase, as more and more criminal organizations are developing DeFi hacking skills internally. In addition, as DeFi becomes more and more widespread, these types of attacks are becoming more and more lucrative. »

Thus, projects in the DeFi space must focusing more on securing smart contracts. This recommendation had been made from the very first days of space. However, not all projects have provided resources for this purpose.

In just 3 months, since the beginning of 2022, hackers have managed to steal more than $1.22 billion from the DeFi space. Hacks are facilitated by the fact that some projects are not sufficiently secure. That said, the hacking of the DeFi space is likely to continue if security is not strengthened.

Source : BeInCrypto

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Luc Jose Adjinacou avatar
Luke Jose Adjinacou

Far from having cooled my ardor, an unsuccessful investment in 2017 on a cryptocurrency only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay information related to this ecosystem with my pen.

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