Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Ethereum Exploits Account for 70% of all DeFi Losses in 2023

Ethereum Exploits Account for 70% of all DeFi Losses in 2023

DailyCoinDailyCoin2023/12/28 20:13
By:DailyCoin
  • Data shows Ethereum was the most exploited DeFi chain in 2023 by the amount lost.
  • BNB Chain was also heavily exploited by hackers this year.
  • Prior year data shows that BNB Chain suffered the biggest dollar losses.

Decentralized finance (DeFi) has changed the game by opening access to financial services without an intermediary. However, a recent tweet from Casa co-founder Jameson Lopp stated that $1.95 billion was lost to DeFi exploits in 2023, down slightly from 2022, which put total DeFi losses for that year at $2.075 billion, according to security firm SlowMist

DeFi protocols are vulnerable to loss due to the open and immutable nature of the smart contracts that underpin DeFi. However, different protocols seem more susceptible to attack than others, as evidenced by 70% of 2023’s DeFi losses occurring on the Ethereum blockchain. 

Cybercriminals Favor Ethereum 

According to Lopp’s uncited data source, 2023 DeFi losses occurred mostly on the Ethereum and Binance Smart Chain (BSC) blockchains, totaling $1.35 billion and $110.1 million, respectively. 

Although the biggest total dollar loss was attributed to Ethereum, which accounted for nearly 70% of the $1.95 billion total loss in 2023, the highest number of incidents occurred on BSC at 213. This indicates attackers exploit BSC more frequently but can extract less money on average than the DeFi market leader.    

Ethereum and Binance Smart Chain experienced the most DeFi security incidents by far in 2023. pic.twitter.com/ZS9ZqNKBww

— Jameson Lopp (@lopp) December 28, 2023

According to DeFiLlama, 2023’s biggest single DeFi hack was a database attack on Mixin, netting hackers $200 million in September. The Mixin Network is a trading network that connects different blockchains to its own multi-chain network. It was noted that Mixin was not mentioned in Lopp’s data source. 

While 2023 was damaging to Ethereum’s reputation, BSC DeFi protocols were heavily targeted by hackers in 2022.

2022 DeFi Hacks

Data on DeFi hacks compiled by SlowMist showed 183 security incidents last year, totaling a loss of $2.075 billion. Unlike the current year, BNB Chain held the highest number of breaches at 79 and the biggest loss of any chain at $785 million. 

Ethereum Exploits Account for 70% of all DeFi Losses in 2023 image 0 Ethereum Exploits Account for 70% of all DeFi Losses in 2023 image 1 DeFi security incidents by chain per SlowMist

Binance rebranded Binance Smart Chain to BNB Chain in February 2022, but many still interchange the two names.

On the Flipside

  • Lopp did not attribute the 2023 DeFi hack data source, making it difficult to review the methodology.
  • Different sources may use varying standards and criteria to calculate data on DeFi losses.
  • Ethereum’s 2023 $1.35 billion DeFi loss represents around 4.6% of the blockchain’s current value locked in ETH DeFi protocols.

Why This Matters

Although the majority of DeFi losses in 2023 occurred on Ethereum, the issue of DeFi security spans the entire crypto industry. Failure to address the issue jeopardizes future growth until trust can be established through better practices such as stricter oversight and improved code auditing.

Read about Arthur Hayes’ recent Ethereum price prediction here:
Hayes Ditches Solana for Ethereum, Citing $5K “Prophecy”

Find out more on the evidence that supports Craig Wright’s Satoshi claim here:
Bitcoin SV Pumps as Wright Boosts Satoshi Legitimacy Claims

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

38% Dogecoin Rebound, Cardano Tests AI Limits, But Unstaked’s AI Advantage Steals the Show

Dogecoin (DOGE) jumps 38%, and Cardano (ADA) launches an AI testnet, but Unstaked’s advanced AI agents go beyond marketing, offering real impact and value.Dogecoin (DOGE) Future: Aiming for $3.94 with MomentumCardano (ADA) Blockchain Tests AI ScalabilityUnstaked: AI That Goes Beyond MarketingFinal Take: Real AI Utility vs. Hype

Coinomedia2025/05/08 21:11
38% Dogecoin Rebound, Cardano Tests AI Limits, But Unstaked’s AI Advantage Steals the Show

ETH Trades at Historic Lows vs BTC Since 2019

ETH hits lowest value compared to BTC since 2019, raising questions on a potential rebound amid mixed fundamentals.ETH Undervalued Against BTC: A Historical SetupBullish History, Bearish FundamentalsPatience Required for Ethereum Bulls

Coinomedia2025/05/08 21:11
ETH Trades at Historic Lows vs BTC Since 2019

Popcat Climbs, Dogecoin Stalls, But BTFD Triples Tokens with 200% Bonus—Best Meme Coin Presale to Buy Now Before May 26 DeadlineConclusion: Don’t Mis

BTFD Coin surges in Stage 15 with 90% APY staking and 200% bonus. Best meme coin presale to buy now before it launches on May 27!BTFD Coin (BTFD) – The Bulls Are Charging, Are You In?Dogecoin (DOGE) – The OG Meme King Facing Shaky GroundPopcat (POPCAT) – The Smart Money Magnet of the Moment

Coinomedia2025/05/08 21:11
Popcat Climbs, Dogecoin Stalls, But BTFD Triples Tokens with 200% Bonus—Best Meme Coin Presale to Buy Now Before May 26 DeadlineConclusion: Don’t Mis

SHIBA’s Hype Fades, ADA Devs Work; Meanwhile, Web3 ai Becomes Highest Trending Crypto With $500K Frenzy

Explore Shiba Inu (SHIBA) recovery trends, Cardano (ADA) prediction backed by developer growth, and how Web3 ai’s Portfolio Optimizer replaces guesswork with smart strategy. Learn why Web3 ai is gaining traction among the highest trending crypto tools.Web3 ai’s Portfolio Optimizer Turns Guesswork Into GainsShiba Inu (SHIBA) Recovery Sparks Renewed Interest After Key Price ReboundCardano (ADA) Prediction: Development Surge Fuels Bullish OutlookStrategy Over Speculation

Coinomedia2025/05/08 21:11
SHIBA’s Hype Fades, ADA Devs Work; Meanwhile, Web3 ai Becomes Highest Trending Crypto With $500K Frenzy