Crypto losses hit $670M in Q2, up 52% from year-ago period

The second quarter of 2022 was one for the books amid a tumultuous period of what I like to call market madness, and the evidence keeps stacking up for the crypto markets. Q2 was full of massive crypto “losses” across the web3 ecosystem, some 97% of which were the result of hacks, according to a new report.

Immunefi’s Crypto Losses in Q2 2022 report identified $670,698,280 worth of losses in Q2, up 52% from $440,021,559 in the same period for 2021.

Most of those losses were contained to just four hacks: Decentralized stablecoin protocol Beanstalk lost $182 million; layer-1 blockchain bridging protocol Harmony Horizon lost $100 million; and decentralized finance (DeFi) protocols Mirror and TribeDAO lost $90 million and $80.34 million, respectively.

“With every disruptive technology, there is a process of iteration, and building out a bigger and better DeFi platform is based currently more on speed than security.” Flux co-founder Daniel Keller

While $670 million is a whopping number, total crypto losses declined 45.5% from about $1.23 billion in the first quarter of 2022, according to a previous report by Immunefi.

However, it’s worth noting that the spike in the first quarter is a bit lopsided due to the largest DeFi hack to date – a sizable $625 million hack on the Ronin Network in March. Without that hack, the first-quarter losses would have been more in line with the second quarter.

But as we enter the third quarter of the year, some market players think hacks are a trend that will continue regardless of current market conditions.

This article was originally published on TechCrunch.com. Read More on their website.

Previous

Amazon faces more antitrust scrutiny in UK and Germany

Cast your votes for roundtable topics at TechCrunch Disrupt

Next