In May, Ethereum faced severe attacks, making it the most targeted blockchain of 2024. Hackers and fraudsters relentlessly focused on Ethereum, causing significant losses.
Key Takeaways
- Ethereum’s Share of Losses: Ethereum constituted nearly 43% of total crypto losses in May.
- Number of Attacks: Ethereum suffered nine individual attacks, the highest among all blockchains.
- Comparative Attacks: The second most targeted blockchain was the BNB Chain, with four incidents.
- Combined Losses: Together, Ethereum and BNB Chain accounted for 62% of the total losses across major chains.
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Notable Incidents
One of the most significant attacks on Ethereum was the $21 million exploit on the Web3 game, Gala Games. This incident highlights the vulnerability of decentralized applications (dApps) on the Ethereum network.
Year-Over-Year Comparison
- Total Losses Decline: Total cryptocurrency losses to hacks and rug pulls have decreased by 20% this year compared to the same period in 2023.
- Monthly Losses Decline: Losses in May decreased by 28% compared to the previous month.
Why It Matters
Ethereum’s status as the most targeted chain emphasizes its susceptibility to attacks. This trend continued from the first quarter of the year. The network’s vast array of decentralized finance (DeFi) projects makes it an attractive target for bad actors. As of now, Ethereum holds over $64 billion in deposits, making it the largest DeFi chain, according to DeFiLlama.
The Immunefi report highlights that DeFi projects were the main targets of exploiters, representing 100% of all losses. This points to the need for enhanced security measures within the DeFi ecosystem.
Current Market Status
As of now, Ethereum (ETH) is trading at $3,743.49, down 0.38% in the last 24 hours, according to Benzinga Pro data.
Summary Table of Key Data
| Metric | April 2024 | May 2024 |
|---|---|---|
| Total Users | 478 | 428 |
| Total Revenue | $0.60 | $0.63 |
| Direct Users | 215 | 239 |
| Organic Search Users | 176 | 127 |
| Top Visiting Country | Japan (111 users) | Japan (115 users) |
| Number of Attacks on Ethereum | 9 | 9 |
| Total Crypto Losses (Ethereum) | 43% | 43% |
| Total Crypto Losses (All Chains) | – | 62% (with BNB Chain) |
| Notable Exploit on Ethereum | $21 million (Gala Games) | – |
Analysis
Despite a decrease in overall user numbers from April to May, revenue saw a slight increase. This suggests that fewer but more engaged users were active in May. The increase in direct users highlights successful targeted marketing efforts. However, the decline in organic search users suggests a need for improved SEO strategies.
The fact that Japan remains the top visiting country indicates a stable audience base. The consistent number of attacks on Ethereum underscores its status as a prime target for hackers, necessitating continuous improvements in security measures.
In summary, while Ethereum’s prominence in the DeFi space brings numerous opportunities, it also attracts significant risks. The ongoing attacks and losses call for robust security enhancements to protect the network and its users.
Disclaimer
FAQ
Ethereum was the most targeted blockchain in May 2024 due to its large number of decentralized finance (DeFi) projects, making it an attractive target for hackers. It faced nine attacks, resulting in significant losses.
Ethereum constituted nearly 43% of the total crypto losses in May 2024, highlighting its vulnerability to attacks compared to other blockchains.
Total cryptocurrency losses to hacks and rug pulls decreased by 20% in 2024 compared to the same period in 2023, indicating an improvement in overall security measures within the crypto space.
