- Q1 2024: Attacks on DeFi Protocols
- Q2 2024: Attacks on CeDeFi Platforms
- August 2024: The Critical Moment
This year has been quite the rollercoaster! Investors buckled up for what they thought would be another thrilling bull cycle, only to get caught in a whirlwind of hacks, scams, and staggering losses. By the end of August 2024, the industry had lost a jaw-dropping $1.2 billion to hacks and scams, a 15.5% increase from the previous year.
Q1 2024: Attacks on DeFi Protocols
The year started with a series of really nasty DeFi protocol attacks. Two major exploits accounted for $144.5 million in losses, representing 43% of all Q1 losses. Ethereum and BNB Chain were the most targeted platforms, suffering 33 and 14 attacks, respectively. The impact on investor confidence was immediate and severe: Ethereum’s trading volume plummeted by 77.99%, and Bitcoin saw an even steeper decline of 80.5%.
Q2 2024: Attacks on CeDeFi Platforms
In Q2 2024, the focus of attacks shifted to centralized DeFi platforms (CeDeFi), accounting for 70% of the total losses during this period. Two major exploits in this quarter alone accounted for $360 million in losses. The market’s response was dramatic: Bitcoin’s transaction volume nosedived by 65.96%, and Bitcoin’s price dropped from $70,000 to $66,000 in June.
August 2024: The Critical Moment
August 2024 saw the culmination of the year's early events, with crypto liquidations amounting to $1.08 billion. Bitcoin prices plummeted from around $65,000 to $50,000, with long positions losing over $315 million in under 24 hours. Ethereum traders faced losses of $305 million in long positions.
The crypto market in 2024 has been defined by a crisis of confidence, partly stemming from an unprecedented wave of hacks and scams. Rebuilding investor confidence will require a concerted effort from all stakeholders. Addressing security concerns head-on and creating a more robust, transparent, and regulated environment is essential for the crypto market to regain investor trust and achieve sustainable growth.
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