In August 2024, the cryptocurrency ecosystem experienced its smallest monthly losses of the year. However, this development, which may be quite encouraging for potential investors, is accompanied by an increase in year-to-date (YTD) losses, indicating that the nascent industry may see more losses due to malicious actors in 2024 than in the previous year.
August sees lowest cryptocurrency losses in 2024
According Blockchain security company ImmunefiThe digital asset industry recorded its lowest monthly losses of the year in August at just $15.1 million due to hacks and fraud. This development indicates a significant 38% decline from August 2033 when it experienced losses of approximately $24.6 million and a staggering 94.5% drop from the figures recorded in July 2024.
Interestingly, the $15.1 million was lost in five attacks, with no incidents of fraud reported. Moreover, Ethereum and BNB Chain were the most attacked networks in August, accounting for the entirety of these losses.
Furthermore, Immuefi reported that all of the attacks occurred in the DeFi space, but that most of the losses were due to a single high-profile incident, namely the Ronin Bridge exploit that resulted in the loss of $12 million. However, these funds were later returned as the “attack” was orchestrated by white hat hackers.
However, despite the low number of crypto losses in August, Immunefi reports that overall year-to-date (YTD) losses in the crypto ecosystem have risen to $1.21 billion across 154 incidents, indicating a 15.5% gain compared to losses recorded in the same period in 2023.
This broader trend suggests that the cryptocurrency industry is still plagued by significant levels of vulnerability, as cryptocurrency losses in 2024 are likely to end up being higher than the figures recorded in 2023. This notion indicates the need to bolster security developments to protect the integrity of the cryptocurrency industry.
Cryptocurrency Market Overview
According Coingecko data, The cryptocurrency market is experiencing a notable decline, with the total market capitalization currently valued at $2.18 trillion, reflecting a slight decrease of 0.19% over the past day. This represents a significant drop from $2.48 trillion a month ago.
Meanwhile, Bitcoin continues to dominate the market with a capitalization of $1.17 trillion, accounting for 53.74% of the total market share. However, the cryptocurrency market leader has lost over 10% of its value in August. Other major assets have seen similar declines; Ethereum fell by 21.9%, Binance Coin (BNB) dropped by 7.3%, and Solana declined by 20.0%. However, the stablecoin market has received more traction in this period with the total market cap increasing by 3.69% to a value of $169.85 billion.
Featured image from Simplilearn, chart from Tradingview
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