According to a recent report from Chainalysis, the crypto market has seen a significant decrease in scams this year. This is likely due to the fact that inexperienced investors are jumping out of the crypto market, as well as the decreasing price of every cryptocurrency. Despite this, hackers are still targeting the market, highlighting the need for better security measures in new DeFi applications.
Two major reasons for the decline in crypto hacking
1) Inexperienced People are Leaving the Crypto Market
Many people who were initially drawn to crypto by the promise of quick and easy profits are now turning their backs on the market altogether. For these inexperienced investors, the constant fluctuations in value are simply too risky. And with so many other investment options available, there’s little incentive to stick with crypto.
As a result, the number of people active in the crypto market is steadily decreasing, leaving only the most die-hard enthusiasts. This has led to a major decline in crypto scams this year.
2) Price is Decreasing for All Cryptocurrencies
Another major reason is the falling prices of cryptocurrencies this year. With the value of Bitcoin and other digital currencies plummeting, there is less incentive for scammers to target investors. In addition, the often-volatile nature of the cryptocurrency market makes it more difficult for scammers to guarantee profits. As a result, many have simply given up on trying to defraud investors out of their money.
Hackers are Still Looking for Another Heist
In the past year, there’s been an explosion of new decentralized finance (DeFi) applications. This has drawn the attention of hackers, who are now licking their lips at the prospect of launching a new heist.
DeFi applications are built on top of blockchain technology and allow users to lend, borrow, trade, and invest without the need for a third party. This makes them incredibly attractive to hackers, who see them as a potential goldmine.
What Does the Future Hold for Crypto Security?
While the security of DeFi Protocols has been a cause for concern in the past, it is believed that with more effort towards security, the future of crypto security looks bright. Developers are continuing to work on new and innovative ways to improve the security of these protocols, and it is hoped that this will lead to a more secure future for all crypto users.