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Reports confirm that the DeFi market has lost over $1.22 billion to hackers in the first three months of 2022.
This is eight times more than the previous figures estimated at $154 million that was lost in 2021.
Despite DeFi’s growth since the beginning of 2021, hackers have continually exploited the space. This is due to new projects with weaker security.
It was confirmed that most of the hacks were a result of poor security, and future hacks are expected to rise in the future.
“We should expect these types of [sophisticated] attacks to continue to increase, as more and more criminal organizations build DeFi-hacking skills in-house. Furthermore, as DeFi gets bigger and bigger, these kinds of attacks become more and more lucrative,” according to Mitchell Amador, CEO and founder of Immunefi.
The Ronin network suffered the most loss as they lost approximately $625 million after a hack at the end of March.
Ethereum and Solana are not also left out in this recent series of hacks, losing an estimated $320 million in February.
The massive number of hacks in the DeFi space means that these projects need to focus on securing and verifying their smart contracts. Smart contracts have been recommended since the early days, but not all projects have made the required allocation of security resources towards it.