Weekly DeFi Roundup: Crypto Hack Losses Reduce by 51%, DYdX Unmasks Attacker, ENS Token Soars
Summary:
This week's Finance Redefined newsletter highlights key decentralized finance (DeFi) updates, notably a 51% reduction in crypto hack losses in 2023, despite the industry still experiencing over $1.8 billion in losses from scams. dYdX, after identifying the perpetrator of a $9 million scam, is contemplating legal redress. Price volatility was witnessed for the top 100 DeFi tokens, and the total value locked dipped below $60 billion. Other highlights include the Ethereum Name Service’s (ENS) token surging 70% after being praised by Ethereum's co-founder, Vitalik Buterin, and the reported exploit of Orbit Chain's Orbit Bridge, leading to an $82 million loss.
Welcome to Finance Redefined, the ideal corner for your quintessential decentralized finance (DeFi) updates. This weekly newsletter is meticulously assembled to keep you abreast of the most notable events of the past week. Intriguingly, the year 2023 recorded a sharp decrease in crypto hack losses by over 50% even though the industry still recorded losses exceeding $1.8 billion from scams. dYdX, a significant player in the industry, has singled out the mastermind behind a $9 million scam and is mulling over legal avenues to seek redress. Stay tuned for more in our weekly DeFi compilation!
The past week was quite unpredictable for the top 100 DeFi tokens, swinging significantly from a bearish to a bullish trend. However, the total locked value dipped southward of the $60 billion mark after an impressive two-month run.
In 2023, crypto hack losses minimized by 51%, states a report. Digital assets recorded losses in the tune of over $1.8 billion across 751 security breach incidents. This figure is a sharp contrast to the $3.7 billion loss in 2022, representing a decline of 51%. Blockchain security powerhouse, CertiK sheds more light on this in its yearly report titled, "Hack3d: The Web3 Security Report 2023." CertiK pieced together vital data on January 3 detailing the experiences of Web3 security in the year under review.
Next up,
Ethereum Name Service’s (ENS) governance token saw a massive 70% leap on January 3 following stellar approval from Ethereum's co-founder, Vitalik Buterin. Buterin, in a January 3 post on X (previously Twitter), hailed ENS calling it “super important” and insisted that its functionality should remain accessible and cost-friendly to all users of the Ethereum network, more especial the layer-2 network users.
In another development,
DYdX has made significant progress by identifying the individual behind the $9 million loss incurred by the exchange after their v3 platform was compromised on November 17, 2023. After a thorough post-mortem analysis of the "concentrated attack," dYdX has given indications of reviving the matter legally against the offender. To cushion against future organized attacks of similar nature, dYdX has since upgraded its v3 trading platform with enhanced open-interest surveillance and warning protocols.
News coming in suggests that the cross-chain protocol, Orbit Chain's bridging service, Orbit Bridge, has reportedly been exploited to a whopping sum of $82 million. In a post on December 31 on X, anonymous Twitter user Kgjr raised concerns about the possible exploit, signifying a series of substantial outflows from the Orbit Chain Bridge protocol. Blockchain security entity Cyvers and on-chain detective Officer CIA have echoed similar sentiments.
Now on the DeFi market outlook:
According to data sourced from Cointelegraph Markets Pro and TradingView, the top 100 DeFi tokens in terms of market capitalization reflected a bullish week, recording green on the weekly charts. After an extended period of bullish trading, the total assets invested into DeFi platforms took a downturn below the $60 billion mark.
Thank you for reading this week's illustrative run-through of pertinent DeFi occurrences. We buzz off now, but not until next Friday when we return with more engaging tales, insights, and updates concerning this ever-evolving niche.
Published At
1/5/2024 10:23:00 PM
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