- In 2022, the NFT market worth surged 122 occasions to $12.2 billion since 2020.
- From numerous bridges and protocols, over $3.4 billion was hacked final yr.
- 53.6% of traders desire sizzling wallets to retailer funds after the FTX crash.
Whereas the crypto market skilled a harsh winter in 2022, with important fluctuations, the variety of NFT holders elevated by 250%, from 1.5 million to three.7 million. This resulted within the NFT market worth skyrocketing 122 occasions to $12.2 billion since 2020.
Because the market continues to develop, so do hackers and dangerous actors, with over $3.4 billion in complete worth hacked final yr. In a current research, 50.4% of traders worldwide reported experiencing crypto hacks and exploits solely in 2022.
Contextually, the research revealed that traders with lower than one yr of expertise imagine that the majority hacks and exploits are the results of technical flaws and loopholes within the protocol, whereas traders with multiple yr of expertise imagine that pretend covers for tasks to rug pull are the principle causes of most hacks.
A number of high-profile hacks and collapses rocked the business and had far-reaching penalties for the worldwide monetary system. Of all of the protocol hacks that 2022 skilled, Ronin Bridge is taken into account to be the biggest one, exploiting $625 million, adopted by the Binance Bridge hack, which compromised round $570 million. FTX is shut behind, with $477 million exploited.
In the meantime, the research exhibits that “rip-off” has been probably the most prevalent prison exercise over time, incessantly accounting for 50% or extra of all different prison actions. Sanctions and stolen funds are among the many different actions that have a tendency to make use of DeFi.
The research additionally highlighted how traders’ views modified within the wake of the FTX crash, emphasizing that Sizzling Wallets — which acquired responses from 53.6% of crypto traders — turned the most well-liked method for traders to retailer their cash.
DeFi’s income, then again, plummeted 55% to $1.54 billion in 2022. Surprisingly, solely 13% of DeFi customers are skeptical about future authorities regulation. Furthermore, owing to the speedy tempo of innovation in DeFi, which has introduced with it a lot of dangers similar to safety flaws, regulatory uncertainty, and liquidity points, three out of 5 traders have been involved about DeFi safety dangers and problems.
On a constructive notice, as numerous events conflict over one of the simplest ways to control this quickly evolving crypto house, the growing scrutiny and regulation of the crypto market is anticipated to succeed in a crescendo in 2023, with 58% of respondents stating that they imagine regulation and funding will push DeFi to mass adoption.