The year 2022 had been a rough year for the DeFi market as several attacks had taken place, and it seems that 2023 will be no different. Despite the increased security measures, hackers have managed to steal millions of dollars from the DeFi market. According to DefiLlama, the DeFi market has already seen more than $20 million being stolen since the beginning of the year.
Flash loan attacks have emerged as the most common form of attack in the DeFi market. Hackers have managed to exploit the protocol logic to gain access to the smart contracts and steal funds. Several platforms such as dForce network, Platypus Finance, Orion, and Dexible have been impacted by these attacks. The attacks have resulted in significant losses, with Platypus Finance being the most affected in February with a total amount of $8.5 million lost.
The rise of NFTs has also attracted the attention of hackers. The industry’s infancy and the influx of new entrants have made it easier for bad actors to exploit vulnerabilities. Loyalist, an individual with a pseudonym, managed to steal millions of dollars worth of NFTs, including Bored Ape Yacht Club (BAYC) NFTs, via phishing scams on Twitter.
The crypto market’s downturn has also been a factor in the recent attacks. Several negative news, including the Silvergate fallout, have resulted in a 3.2% drop in the global cryptocurrency market capitalization in the last 24 hours. Bitcoin and Ethereum have recorded sharp declines over the same period.
The recent attacks have highlighted the need for increased security measures in the DeFi and NFT markets. While platforms have implemented several measures to prevent attacks, bad actors continue to find new ways to exploit vulnerabilities. Investors and users must be vigilant and exercise caution when dealing with DeFi and NFT platforms.
“Flash loan attacks continue to be the dominant form of attack in the DeFi market. Hackers are constantly finding new ways to exploit the protocol logic to gain access to smart contracts and steal funds. The recent attacks highlight the need for increased security measures in the DeFi and NFT markets,”said a spokesperson for DefiLlama.
“NFTs are still in their infancy” as per the spokesperson and “the influx of new entrants has made it easier for bad actors to exploit vulnerabilities. The industry must take steps to improve security and prevent further attacks,”
In conclusion, the recent attacks on the DeFi and NFT markets have highlighted the need for increased security measures. While platforms have implemented several measures to prevent attacks, bad actors continue to find new ways to exploit vulnerabilities. Investors and users must be vigilant and exercise caution when dealing with DeFi and NFT platforms. The industry must take steps to improve security and prevent further attacks.