Key Points
- Crypto losses dropped to just $15,082,000 in August 2024, the lowest monthly total of the year, marking a 94.5% decrease from July.
- Despite August’s low figures, total losses in 2024 have reached $1,210,741,330, surpassing the same period in 2023 by 15.5%.
Immunefi, a leading bug bounty platform for Web3 founded in 2020 to enhance smart contract security, has released its latest report on cryptocurrency losses. The report reveals contrasting trends for August and the year-to-date (YTD) figures for 2024.
August Marks Lowest Losses of 2024
According to Immunefi’s research, August 2024 witnessed a dramatic decrease in crypto losses, with only $15,082,000 lost due to hacks across five specific incidents. This figure represents a 38% decrease compared to August 2023 and a substantial 94.5% drop from July 2024. Notably, no fraud events were reported in August, with all losses attributed to hacks.
The majority of August’s losses were concentrated in two projects: Ronin Network, a gaming-focused blockchain that lost $12 million, and Nexera, a DeFi protocol that incurred a loss of $1.5 million. It’s worth noting that the $12 million stolen from Ronin Network was later recovered, thanks to white hat hackers who discovered and reported the vulnerability.
DeFi Dominates August Losses
Interestingly, all of the reported losses in August were concentrated in the Decentralized Finance (DeFi) sector, which accounted for 100% of the incidents. The absence of reported fraud cases or losses in the Centralized Finance (CeFi) sector marked a notable shift in the landscape of crypto security vulnerabilities.
Year-to-Date Losses Continue to Rise
Despite the relatively quiet August, the overall trend for 2024 shows an increase in crypto losses. Year-to-date losses have reached $1,210,741,330 across 154 specific incidents, marking a 15.5% increase compared to the same period in 2023, when losses totaled $1,048,044,942.
This uptick in annual losses underscores the ongoing challenges the cryptocurrency industry faces regarding security and fraud prevention. As the sector continues to evolve and attract more participants, the need for robust security measures and vigilant oversight remains paramount.
Ethereum and BNB Chain Bear the Brunt
The report highlighted that Ethereum and BNB Chain were the most targeted blockchains in August. Ethereum suffered three individual attacks, representing 60% of the total losses across targeted chains, while BNB Chain experienced two incidents, accounting for the remaining 40%.
The Immunefi report reminds us of the volatile nature of the crypto space and the importance of continued efforts to enhance security protocols across all blockchain platforms and applications. As the industry continues to grow, bug bounty platforms like Immunefi become increasingly crucial in identifying and mitigating potential vulnerabilities before they can be exploited.
