According to a recent security report, most cryptocurrencies struggle to recover in value following hacks.
According to a recent security report, most cryptocurrencies struggle to recover in value following hacks. Immunefi found that over 77.8% of hacked cryptocurrencies experience sustained negative price impacts six months post-exploit. Additionally, 51.1% see their prices drop by more than 50% during that period.
The report also notes a shift in hacking targets. While decentralized finance (DeFi) platforms were previously the main focus, centralized finance (CeFi) infrastructures now present the greatest vulnerabilities.
In 2024, $636 million of the $1.19 billion stolen from digital assets is attributed to CeFi weaknesses, often involving infrastructure compromises like leaked private keys. Over $230 million was stolen from Indian exchange WazirX in July, marking one of the largest crypto hacks this year.
Immunefi's founder, Mitchell Amador, explained that hacked protocols face immediate and long-term damage. The initial financial losses are compounded by market and dependency impacts, along with the challenges of rebuilding teams and operations.
The report also found that established crypto projects tend to recover better from hacks. Tokens backed by larger ecosystems, such as BNB Chain, SushiSwap, and Optimism, demonstrate resilience due to strong community support and buying power after such events.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
