- DeFi hacks in 2024 decline by 40% due to improved security protocols and audits.
- CeFi breaches surge to $694 million, highlighting vulnerabilities in centralized platforms.
What happened: DeFi hacks decline, but CeFi breaches soar in 2024
According to a new report from Hacken, decentralized finance (DeFi) hacks dropped by 40% in 2024 compared to the previous year, signaling advancements in security practices and increased adoption of audits across DeFi protocols. This decline reflects the growing maturity of the DeFi ecosystem, as platforms implement stronger safeguards to protect user funds.
In contrast, centralized finance (CeFi) platforms faced a surge in breaches, with reported losses totaling $694 million. Hacken’s analysis suggests that these centralized platforms remain lucrative targets for hackers due to their higher asset concentration and, in some cases, weaker security measures. The report emphasized the need for CeFi providers to invest in better security infrastructure to address this rising threat.
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Why it is important
The decline in DeFi hacks demonstrates how enhanced security protocols, routine code audits, and bug bounty programs are contributing to a safer ecosystem. These measures are not only protecting user assets but also building confidence among investors and users of decentralized platforms.
However, the surge in CeFi breaches highlights the ongoing risks associated with centralized platforms. The $694 million loss underscores the importance of improving cybersecurity measures and decentralizing key operations to minimize vulnerabilities.
Blockchain security expert Anna Solis commented, “The DeFi sector’s progress in reducing hacks is commendable, but the alarming rise in CeFi breaches shows there’s still work to be done across the crypto landscape.”
As the crypto industry grows, balancing security across DeFi and CeFi platforms will be critical to ensuring long-term trust and adoption. The report serves as a reminder that while DeFi’s decentralized nature offers inherent security advantages, centralized platforms must prioritize user protection to mitigate growing risks.
