'The average dollar in DeFi is as safe as it was a year ago,' said Haseeb Qureshi, managing partner at Dragonfly, as he addressed concerns regarding security in the decentralized finance sector. He highlighted a noticeable decrease in the size of reported hacks, suggesting that fears surrounding DeFi security could be exaggerated.
Qureshi pointed out that the median size of hacks has dropped significantly, moving from over $8 million in 2021 to below $1 million in 2026. The total value lost to hacks decreased from $2.55 billion in 2025 to $1.89 billion in 2026. However, the number of hacking incidents reached record levels in the first half of 2026, with 75% of the nearly $1 billion stolen attributed to operational security failures.
Notably, the exclusion of major hacks such as Bybit and KelpDAO influenced these statistics. Qureshi explained that while the total dollar amount lost was declining, the frequency of hacks remained high. He indicated that the ongoing evolution of DeFi protocols could change the space, yet the common vulnerabilities such as admin key exploits are also decreasing in dollar terms. This suggests a shift in the focus of attackers.
Despite the rising number of incidents, the overall value locked in DeFi vaults has sharply decreased from $113 billion to $61 billion, recovering slightly to $65 billion recently. S&P Global Ratings has begun viewing these vaults as similar to managed funds, predicting that they could play a crucial role in the future of tokenized real-world assets. Whether security concerns will impede further adoption remains uncertain, as the allure of higher yields in traditional financial products challenges DeFi's appeal.
This material is informational and should not be considered financial advice.
