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Crypto Hacks Lead to Long-Term Price Declines, Immunefi Report Reveals
According to a recent security report , most cryptocurrencies struggle to recover in value following hacks. Immunefi found that over 77.8% of hacked cryptocurrencies experience sustained negative price impacts six months post-exploit. Additionally, 51.1% see their prices drop by more than 50% during that period.
The report also notes a shift in hacking targets. While decentralized finance (DeFi) platforms were previously the main focus, centralized finance (CeFi) infrastructures now present the greatest vulnerabilities.
In 2024, $636 million of the $1.19 billion stolen from digital assets is attributed to CeFi weaknesses, often involving infrastructure compromises like leaked private keys. Over $230 million was stolen from Indian exchange WazirX in July, marking one of the largest crypto hacks this year.
Immunefi's founder, Mitchell Amador, explained that hacked protocols face immediate and long-term damage. The initial financial losses are compounded by market and dependency impacts, along with the challenges of rebuilding teams and operations.
The report also found that established crypto projects tend to recover better from hacks. Tokens backed by larger ecosystems, such as BNB Chain, SushiSwap, and Optimism, demonstrate resilience due to strong community support and buying power after such events.