Improvements in Decentralized Finance Security Lead to Reduced Financial Losses, While Centralized Finance Experiences Surge in Breaches

DeFi Sees 40% Fewer Financial Losses as CeFi Struggles With Breaches

The decentralized finance (DeFi) sector has made significant strides in improving its security, resulting in a 40% decrease in financial losses compared to the previous year. According to the annual Web3 security report by Hacken, DeFi-related thefts dropped from $787 million in 2023 to $474 million in 2024. This substantial decline is attributed to enhanced security protocols, including more robust bridges and advanced cryptographic techniques.

On the other hand, centralized finance (CeFi) platforms have seen a dramatic surge in security breaches, with losses exceeding $694 million in 2024, more than doubling compared to the previous year. These incidents highlight the critical need for improved private key management and monitoring systems across CeFi sectors.

The Radiant Capital hack, which resulted in a $55 million loss due to weaknesses in access control, serves as a stark reminder of the importance of addressing these vulnerabilities. Hacken’s CEO, Dyma Budorin, emphasized the “critical gaps” in CeFi’s operational security, underscoring the urgency for swift improvements.

The report also highlights the growing threat from hackers, including North Korean groups, emphasizing the need for enhanced security measures across both DeFi and CeFi sectors.

Source: crypto-economy.com