Decentralized finance recorded far fewer losses in recent years, according to new industry data. Total incidents dropped from $2.62 billion in 2022 to $534 million in 2024. A single November 2025 exploit across six networks illustrated the remaining threat.
Protocol logic bugs accounted for 89.1 percent of 2025 losses. Median loss per incident fell to $1.5 million that year, down 75 percent from 2022 levels. Eighty-three unique incidents occurred, showing more but smaller events. Bridge exploits, once responsible for 73 percent of losses in 2022, fell to 3 percent by 2025. Flash-loan attacks declined from 54 percent of losses in 2020 to under 1 percent. Private-key compromises dropped to 8.1 percent. The Balancer V2 exploit in November 2025 drained about $128 million across Ethereum, Arbitrum, Base, Polygon, Sonic, and OP Mainnet. An arithmetic precision flaw allowed the attacker to drain funds in under half an hour despite eleven prior audits. Ethereum, Solana, and BNB Chain recorded the lowest loss-to-TVL ratios at 0.42 percent, 0.42 percent, and 0.33 percent respectively. The data came from a review covering 2020 through 2025.
