In December 2024, crypto losses due to hacks, scams and exploits dropped significantly to $28.6 million, marking the lowest monthly figure of the year. This is substantial decline from $63.8 million in November and $115.8 million in October.
December's losses are 71% lower than those of the previous month, suggesting a potential improvement in security measures with the crypto space.
This significant drop in crypto losses in December 2022 can be attributed to several key factors. Many crypto platforms have implemented stronger security measures and protocols to protect against hacks and exploits, which have contributed to the decrease in losses from such incidents.
The market started to stabilize near the end of December after a turbulent period marked by significant liquidations and high volatility earlier in the month. Since large-scale exploits and scams usually flourish in unstable environments, this stabilizing probably decreased the opportunity for them.
Enhanced clarity regarding regulations may have fostered a more secure environment for investors.
In spite of the overall decline in crypto prices earlier in December, some investors remained optimistic about potential long-term gains. This shift in sentiment may have helped in mitigating the impact of negative events on overall stability of the market.
Total losses for the entire year 2024 reached approximately $2.3 billion, which shows a 40% increase from the year 2023 but is lower than the $3.78 billion recorded in 2022.
This indicates ongoing vulnerabilities within centralized exchanges and other platforms in spite of the recent decrease in monthly losses.
The data shows that while figures for the month of December are promising, the overall trend for the year underscores persistent challenges in securing digital assets against cyber threats.
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