New research conducted by the bug bounty platform Immunefi reveals that losses in the crypto industry due to hacks and frauds have significantly decreased in the second quarter of 2024 compared to the same period last year. According to Immunefi, the entire Web3 ecosystem experienced losses totaling over $572 million in April, May, and June, which is a substantial decrease from the $265.4 million lost in Q2 of 2023.

The research highlights that a staggering 98.5% of these losses were a result of hacks, with two major incidents standing out. The first was a $305 million exploit that targeted the Japanese crypto exchange DMM Bitcoin in late May, and the second was a $55 million hack that affected the Turkish exchange BtcTurk.

On the other hand, frauds, scams, and rug pulls were responsible for only around $8.45 million worth of losses in Q2, marking an 81% decrease compared to the same quarter in 2023.

When analyzing the distribution of these incidents, it was found that centralized finance (CeFi) projects accounted for 70% of the total stolen proceeds in five separate cases. In contrast, decentralized finance (DeFi) protocols represented only 30% of the incidents with a total of 62 cases.

In terms of the targeted blockchain networks, Ethereum (ETH) suffered the most attacks, with 34 incidents that resulted in 46.6% of the total losses. Binance Coin (BNB) came in second place with 18 incidents, accounting for 24.7% of the losses.

Immunefi also noted that several Ethereum layer-2 projects were targeted multiple times. Among these, Arbitrum had the highest number of incidents with four, representing 5.5% of the total losses. Blast and Optimism followed closely with three incidents each. Other blockchain networks such as Polygon, Solana, Fantom, Linea, Mantle, TON, and others collectively accounted for 15% of the total incidents, each with a single occurrence.

It is important to note that the information provided by The Daily Hodl is for informational purposes only and should not be considered as investment advice. Investors are advised to conduct their own research and assessment before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Any transfers or trades made are at the individual’s own risk, and they are responsible for any resulting losses. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor does it act as an investment advisor.