📣 DeFi Losses Plummet by 40% in 2024 — Hacken Report
posted 17 hr ago
The decentralized finance (DeFi) sector made strides in 2024, with total losses reduced from $787 million in 2023 to $474 million. This improvement underscores advancements in security across the ecosystem.
How DeFi Secured Progress in 2024
One standout achievement in 2024 has been the improved security of blockchain bridges, long a high-profile target for cyberattacks. Losses tied to bridge exploits dropped from $1.89 billion in 2022 and $338 million in 2023 to a mere $114 million this year.
The implementation of innovative technologies, like multi-party computation (MPC) and zero-knowledge proofs (ZK), has been instrumental in reducing the scope and occurrence of cross-chain vulnerabilities.
DeFi’s Weak Points — 2024 Attack Analysis
Despite overall security improvements, DeFi still suffers from vulnerabilities in access control systems and smart contract execution.
- Access Control Exploits: These accounted for $219 million in losses in 2024, a drop from $339 million the year before. Such attacks often exploit private key theft or insufficient security measures. The Radiant Capital breach, costing $55 million, was a stark reminder of these risks.
- Smart Contract Security Gaps: Attacks leveraging reentrancy flaws, flash loan exploits, and oracle manipulation caused $255 million in losses this year, a reduction from $448 million in 2023. However, vulnerabilities like the $27 million Penpie reentrancy exploit underscore the pressing need for better coding practices and preemptive audits.
DeFi’s Progress — Security Lessons for 2024 and Beyond
The decline in DeFi-related losses showcases the positive impact of regular audits, bug bounties, and improved key management practices. Despite these gains, weaknesses in access control and smart contract security highlight areas for refinement.
DeFi projects can enhance their resilience by adopting comprehensive standards such as the Cryptocurrency Security Standard (CCSS).
CCSS has emerged as a trusted framework for the crypto industry, helping exchanges, apps, and custodial platforms maintain robust security standards.
Building on established guidelines like ISO 27001, CCSS addresses the unique demands of the cryptocurrency ecosystem, ensuring resilient platforms and trust among users.
In 2024, WhiteBIT, one of Europe s leading crypto exchanges, achieved CCSS Level 3 certification—the highest level of compliance through an extensive audit conducted by Hacken. This rigorous process included an evaluation of 41 aspect controls critical to cryptocurrency securityshared the auditing firm.
WhiteBIT Exchange Attains Prestigious CCSS Level 3 Certification. Source: hacken.io
Hacken specialists highlight critical measures such as secure creation of cryptographic keys, encrypted storage solutions, and the integration of multisignature protocols. Adopting these steps can empower DeFi projects to fortify their security and safeguard user assets.
Though 2024 showed considerable improvements, the DeFi space must double down on security to sustain growth and inspire trust. Prioritizing these efforts will help establish a more resilient and reliable decentralized ecosystem.
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