Ethereum and Polygon Suffered Major Losses in 2023
According to a recent research report by SlowMist, Ethereum and Polygon experienced significant losses in 2023. Ethereum incurred the highest losses, totaling $487 million, while Polygon lost millions of dollars as well.
Total Losses Decreased Compared to 2022
The SlowMist report reveals that there were a total of 464 security incidents in 2023, resulting in losses of nearly $2.5 billion. This marks a 34.2% decrease in losses compared to the previous year, which saw over 300 incidents totaling $3.8 billion.
Decentralized Finance (DeFi) Targeted the Most
The decentralized finance (DeFi) sector was the most frequently targeted, experiencing over 280 security incidents in 2023. These incidents accounted for 60.7% of the total incidents.
Significant Decrease in Financial Toll
The financial toll from these incidents amounted to $773 million, representing a 62.7% decrease compared to 2022. In that year, there were 183 incidents with losses of around $2 billion.
Exit Scams and Account Compromise Attacks
Exit scams were the most common cause of loss, accounting for 110 cases worth approximately $83 million. Account compromise attacks followed closely behind.
The Recovery Efforts
In 2023, the crypto market lost a total of $2 billion. However, cybersecurity experts and white hat hackers managed to recover approximately $200 million from the overall sum.
Hot Take: Decrease in Losses Signals Progress in Crypto Security
The decrease in total losses compared to the previous year indicates that progress is being made in enhancing security measures within the crypto industry. While Ethereum and Polygon suffered significant losses, efforts to combat scams and hacks have led to a recovery of funds. It is crucial for investors and users to remain vigilant and take necessary precautions to protect their assets in this evolving digital landscape.
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