DeFi Sector Experiences Drop in Losses From Hacks
The movement of stolen funds from Hundred Finance a year after the exploit has caught some attention
May 4, 2024 12:13 AM
Reading time: 1 minute, 37 seconds
TL;DR This week in decentralized finance (DeFi) saw a significant drop in losses from hacks, with a 67% reduction in April. Meanwhile, Bitcoin layer-2 platform Stacks hit a record high in active users, signaling a growing interest in Bitcoin-native DeFi.
Losses from crypto hacks plunge 67% in April to $60 million
The DeFi sector, often marred by hacks and exploits, has witnessed a significant downturn in losses. In April, losses decreased 67% to $60 million, down from March's $187 million.
This decline represents a crucial shift in DeFi's security landscape, as noted in a report by the on-chain security firm PeckShield. The reduction in compromised cryptocurrency value marks an essential stride towards enhancing the security and trustworthiness of DeFi protocols.
Stacks active accounts reach record high amid growing interest in Bitcoin DeFi
In another development, the Bitcoin layer-2 network Stacks achieved an all-time high in active users, driven by a burgeoning interest in Bitcoin DeFi (BTCFi).
This milestone of 122,497 active accounts suggests a robust and growing community engaging with BTCFi, signaling a positive trend for the future of Bitcoin-native financial applications.
"The record account count suggests a growing interest in BTCFi and comes over a week after the 2024 Bitcoin halving."
Hundred Finance hacker moves stolen assets a year after $7 million exploit
The DeFi space was also rocked by the movement of stolen funds from the Hundred Finance protocol a year after the $7 million exploit.
The hacker's activity, involving the transfer of significant amounts of Ether (ETH) and Tether (USDT), underscores the persistent challenges facing DeFi security and the ongoing efforts to track and recover illicitly obtained assets.
Curve Finance awards dev $250,000 for finding reentrancy vulnerability
On a positive note, a security researcher's proactive identification of a reentrancy vulnerability in Curve Finance highlights the critical role of community vigilance in safeguarding DeFi protocols.
This incident, where a potential exploit was averted through a substantial bounty reward, exemplifies the importance of security research and collaboration within the DeFi ecosystem.
Despite a bearish trend among the top 100 DeFi tokens and a decrease in the total value locked below $90 billion, the sector continues to evolve. These developments, from security improvements to the rise of Bitcoin DeFi, illustrate decentralized finance's dynamic and resilient nature.
