Cryptocurrency: Hacking attacks hit quarterly high, unprecedented

Second quarter of 2026: The crypto market ends under extreme pressure

In the second quarter of 2026, the crypto market ends under extreme pressure. In more than 85 security incidents, approximately $775 million was stolen, setting a record frequency of attacks. Two major attacks accounted for most of the damage, while the total value of DeFi lockdown fell to nearly $70 billion.

Summary

A total of 85 encryption security incidents occurred in the second quarter of 2026, with a total amount of US$775 million stolen. The combined losses of Drift Protocol and KelpDAO were close to $577 million. DeFi\'s TVL dropped from about $115 billion to $70 billion.

85 attacks recorded in three months

85 cryptographic security incidents were recorded in the second quarter, compared with 36 in the first three months of this year. The surge put the quarter at the top of the list of attacks in history. Since January, cryptographic hacking incidents have affected 121 protocols or platforms.

Cumulative losses for the quarter were approximately US$775 million. For the full year, the amount stolen was close to $942 million. Although this figure is heavy, it does not exceed some financial records in previous cycles.

This distinction is crucial. The second quarter of 2026 may not be the period with the heaviest dollar losses in history, but is more prominent as the period with the highest frequency of attacks. Attacks are increasing exponentially, even if each time does not cause huge damage.

This high frequency creates an atmosphere of permanent insecurity. Users are no longer facing isolated incidents, but seeing constant alarms, increasing withdrawals, and breaking trust week after week.

Two cryptographic attacks crush statistics

The two incidents of Drift Protocol and KelpDAO alone caused nearly US$577 million in losses. Both attacks occurred in April, just weeks apart, concentrating most of the stolen funds in the second quarter.

Drift Protocol lost approximately US$285 million. According to investigators, the operation was based on months of social engineering. The attacker first gained the trust of project members and then secretly obtained management authority in seemingly ordinary transactions.

This approach shows the evolution of encryption risks. Code is no longer the only target. Hackers began attacking teams, internal processes and people who could verify sensitive operations.

On April 18, KelpDAO was attacked. After breaching the authentication infrastructure associated with LayerZero Bridge, the attacker illegally created or transferred approximately $292 million in rsETH.

In this case, the problem does not stem directly from the classic vulnerability of smart contracts. The attacker manipulated off-chain elements used to confirm messages between networks, causing the system to accept an action that should not have been verified.

DeFi lost billions of dollars, trust continues to fade

The total value of DeFi lockouts fell from approximately $115 billion in January to nearly $70 billion at the end of June, which means a decline of approximately 39% in just six months. Hacking attacks do not fully explain the decline. The decline in crypto prices mechanically reduces the dollar value of deposited assets. Investors are also moving money to stablecoins, tokenized products or lower-risk strategies.

However, repeated attacks accelerated the withdrawal of funds. After the KelpDAO incident, Aave\'s TVL dropped sharply. Users would rather withdraw funds than wait to understand the true extent of the risk.

The current situation is still not as severe as it was during the 2021-2022 crisis. The crypto market today has more stablecoins, derivatives and tokenized real-world assets. As a result, capital does not always disappear, but moves to other areas.

However, this diversity does not protect all networks. Among the major DeFi ecosystems, only Tron and Hyperliquid have seen growth since January. Several other chains showed very significant declines.

The second quarter does not mean the demise of DeFi, but it does prompt a more rigorous review of its foundations. Without better protection of teams and infrastructure, every new product will also increase the attack surface. International pressure shows that cryptographic security now goes beyond mere technical frameworks.