The crypto market has been on a bullish trend with increasing prices driven by favorable regulatory changes and significant events like the Bitcoin Halving and approvals of crypto Exchange-Traded Funds (ETFs). However, this positive momentum has also brought about a surge in losses due to hacks and rug pulls.
Drop in Crypto Losses in May 2024
A recent report by security services platform Immunefi revealed a 20% decrease in crypto losses from hacks and rug pulls in 2024 compared to the same period in 2023. In May 2024 alone, losses decreased by 12% from the previous year, totaling $52 million. Decentralized Finance (DeFi) projects were the main targets for exploits during this time.
Ethereum and Binance Smart Chain Targeted
The report identified hacks as the primary cause of loss in May 2024, amounting to $50 million across 14 incidents. Ethereum and Binance Smart Chain were the most targeted platforms, comprising 62% of total losses. Ethereum had nine incidents, while Binance Smart Chain had four incidents during this period.
Other chains like Base, Arbitrum, Solana, The Open Network, Blast, Fantom, Optimism, and Polygon each experienced one incident, contributing to a total of 4.8% losses respectively.
Despite the ongoing bull run in the crypto market, the industry must address the rising losses from hacks and rug pulls. Strengthening security measures and addressing vulnerabilities are crucial to safeguard investor funds and maintain confidence in the market’s growth.
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