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DeFi Protocols Suffered the Most Losses in 2022

The top five largest cryptocurrency thefts, according to Forbes, have included cross-chain hacks, code exploits, and flash loan attacks.

The top five hacks are $625 million by Ronin Network, $325 million by Wormhole, $190 million by Nomad Bridge, $182 million by Beanstalk Farms in a flash loan attack, and $160 million by Wintermute.

The report claims that of the total amount stolen by hackers this year, DeFi hacks account for about 49%. As a result, there has been less investment in the industry. According to data from blockchain analytics company Elliptic, DeFi protocols lost 75% of their total value locked (TVL) in 2022. But that also explains why asset prices are falling.

According to data from DeFi Llama, TVL generated by DeFi protocols decreased from 166.58 billion at the beginning of 2022 to 39 billion in December.

According to a Forbes report, hackers this year’s top target was cross-chain bridges, which allow tokens to be traded between blockchains. 70% of all cryptocurrency theft in 2022 will be attributed to hackers, who stole nearly $2 billion from blockchain bridges.

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