August 1, 2023

Crypto Losses in July Highest in 2023

Crypto Losses

Crypto Losses

July was the worst month for the crypto market this year so far after recording the highest losses, according to data collected from Web3 outlet De.Fi.

The total losses of the cryptocurrency market in July recorded more than $486 million, more than six times the total in July 2022, which recorded only $80 million.

The total amount of crypto recovered in July this year was only $6.15 million, only 1% of the lost crypto in the month which means that 99% of the lost crypto in July remained uncovered.

This report follows a series of significant hacks and exploits in July, along with increased legislative action regarding cryptocurrency and digital assets.

De.Fi researchers asserted the importance of the crypto market’s capability of recovering the lost crypto as it is an essential factor in reducing the effects of these regrettable incidents.

According to the report, the majority of the losses occurred on the Ethereum network, totaling $447 million across 36 different incidents. These include the Multichain hack that resulted in a loss of $231 million and the Alphapo exploit that cost approximately $100 million.

The Base network came in second place in terms of crypto losses with $23 million lost in only a single case, while Binance came in third place with $11 million lost over 18 cases.

In July, the largest amount of funds lost was due to “access control issues,” totaling $364 million. Rugpulls were responsible for over 38 reported cases and resulted in losses of around $36 million. Additionally, reentrancy attacks resulted in losses of approximately $78 million. No mention of exit scams happened in July so far, according to the report.

The crypto losses in the first quarter of this year due to hacks recorded more than $320 million, according to data collected by leading blockchain security company Certik.

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