DeFi hacking loss rate 85x higher than TradFi relative to volume

Liam 'Akiba' Wright, an analyst at CryptoSlate, has analyzed that while the total value lost to hacks in DeFi and traditional finance (TradFi) was comparable last year, the loss rate relative to transaction volume was 85 times higher for DeFi. Citing IBM data, Wright noted that TradFi institutions lost $2.6 billion to hacks on a transaction volume of approximately $35 quadrillion, a loss rate of 0.00007%. In contrast, DeFi protocols lost $2.8 billion on a volume of $46 trillion, representing a loss rate of 0.006%. Wright warned that this disparity is a significant red flag for the reliability of the DeFi space.