Web3 Sector Got Covered With Losses, But is Still Profitable than Q1

The Statement by Beosin

This quarter has proved to be one of the worst quarters in the history of the Web3 sector. According to a blockchain security firm, the amount of losses in the Web3 sector is worth millions. Beosin, the blockchain security company, claims that there was 48 major cyber attack in this quarter. This means the total losses in Q2 amount to around $718.34 million. The firm also tells us that the statistics for Q1 were even worse.

According to the report, Q1 accounts for losses in the Web3 sector worth $1.2 billion. This means that this figure is down 40% from last quarter. Anyways, it’s also important to note that figure is 142% higher than the Q1 of 2021 when the number was around $296.56 million. The statement also tells us that in the web3 sector, there were three attacks whose losses amount to more than $100 million. Also, there were 12 attacks where the losses were around $10 million and 28 attacks where the losses touched $1 million.

Unwrapping The Data Points

The three biggest losses, Beosin says, came from Beanstalk Farms( a credit-based stablecoin project), Elrond or EGLD( a smart contract platform), and Harmony. The numbers account for $182 million, $113 million, and $100 million, respectively. The main target of these attackers in the Web3 sector is the Decentralized Finance, or the DeFi space on the Ethereum (ETH) chain, where the largest number of attacks were noticed.

The blockchain security firm also notes that almost all of the crypto tokens that were stolen were sent to the account of Tornado.cash. This is a crypto mixing service. According to the blockchain security firm, DeFi continues to have the highest rekt frequency by project type; over 79.2% of assaults occur in the DeFi domain. Ethereum suffered the most loss this quarter, totaling $381.35 million. With 26 vulnerabilities, BNB Chain was the most frequently targeted chain.

Hackers moved almost $418.89 million in stolen money to Tornado.cash making up 58.3 percent of the total amount taken in the quarter.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.