A review of DeFi protocol losses from 2020 to 2025 shows industry-wide hacks peaked at $2.62 billion in 2022 before falling roughly 80% to $534 million by 2024, as bridge exploits and smart contract vulnerabilities that once generated billion-dollar losses have become harder to execute. However, the same analysis highlights an emerging threat: shared infrastructure and cross-chain protocols now create single points of failure capable of affecting six or more blockchains simultaneously. While older attack vectors have declined thanks to improved auditing and protocol design, the increasing interconnection of DeFi ecosystems means a single well-targeted exploit could cascade across multiple networks at once, potentially reversing years of security progress in a single event.
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