According to a recent Web3 security assessment from Beosin, out of the 167 significant security exploits, DeFi projects were targeted by more than 113 of them.
In 2022, there were a number of significant hacks and attacks in the Web3 and Decentralized Finance (DeFi) industries. Just in the top 10 attacks, from the Ronin Bridge attack to the Nomad hack, over $2 billion was lost.
According to the 2022 Beosin Global Web3 Security Report, of of 167 significant security events in the previous year, those involving decentralized finance were the most vulnerable; DeFi projects were targeted 113 times, or roughly 67.6% of all attacks, according to the report.
Decentralized financing initiatives ranked second in the report in terms of monetary losses, with $950 million in losses overall. This comes after cross-chain bridging exploits last year cost $1.89 billion in losses.
Attacks on all different kinds of projects resulted in a total loss of $3.6 billion in 2022; this is an increase of 47.4% over the $2.4 billion in exploit-related incidents that occurred in 2021.
The number of decentralized finance projects that are emerging, the lack of adequate security testing prior to going live, and the value that this project attracts are experts’ theories as to why hackers are gravitating towards the space. Alarm bells are already ringing for DeFi projects to be wary of more exploits in the upcoming year as well.