KEY POINTS
- Ethereum has lost some $1.2 billion from onchain thefts so far in 2024
- Polygon was hard-hit by address poisoning compared to other chains
- Nearly 60% tokens in blockchain today are malicious, as per Blockaid data
Leading onchain security platform Blockaid has launched a new security dashboard that shows the state of blockchain security – it turns out that so far in the year, nearly $1.5 billion have been wiped out from the blockchain space due to onchain attacks.
The comprehensive data from Blockaid's State of the Chain dashboard reveals some shocking details that indicate more work has to be done in protecting the blockchain industry from theft and other malicious attacks.
Year-to-Date Losses Surge Near $1.5 Billion
Blockaid's security dashboard provides a trove of information about the state of security across the blockchain space, including losses so far in the year that may shock some users, considering how many blockchain and cryptocurrency firms are hard at work in improving security measures.
- Ethereum leads losing pack – Among blockchain networks, Ethereum has seen the most losses year-to-date, bleeding some $1.2 billion from onchain thefts and other similar attacks. At one point in March, the chain lost a staggering $16.22 million in one day.
- Polygon hit hard by address poisoning – Blockaid's data also showed that in terms of weekly address poisoning attacks, Polygon suffered the brunt, especially in November. The network saw up to 135,000 weekly attempts at address poisoning this year.
In total, $1.47 billion has been swiped by onchain thieves this year, but Blockaid was able to prevent 71 million attacks in the year.
Nearly 60% of Tokens in the Market Today are Malicious
While it's not new information that majority of tokens available in the market today are "malicious," Blockaid gives a closer look at the extent of the data. So far in 2024, 59.3% of crypto tokens are malicious and 40.7% are benign, meaning they're not harmful.
- Polygon has the most malicious tokens – While most other chains also have tokens tagged as malicious, the Polygon chain leads with 66.2% of tokens on the network being questionable. The Zora chain has the most number of benign crypto, with over 86% being benign.
- Trump among top common words in malicious token names – Unsurprisingly, among the common words detected within malicious token names are Trump, cat, dog, Pepe, AI memecoin, Ips, and rocketswap.
What the Data Means
While the information may seem completely negative to new entrants into the blockchain space, it actually has positive signals for the emerging industry.
Blockaid noted that the latest data only emphasizes how Web3 is growing in the speed of light. There are more transactions across chains, and dApp usage is also on the rise, along with the launches of new tokens.
Scams are still rampant, "but scams are a symptom of growth," the Blockaid team noted, adding that despite continuing attacks across chains, "Web3 is getting better at stopping them."
With more regulatory clarity expected around the entry of a new administration in the U.S., the industry is also expected to continue enhancing its guardrails to protect investors and ensure that the sector grows.
It's also crucial for investors, especially new entrants, to DYOR (do your own research) before investing in tokens that may look appealing on the onset but may have hidden red flags around rug pulls and other scam-like activity around the coin.
