Crypto market loses $486M in July, most since 2022

As reported by De.Fi, a prominent Web3 outlet, the cryptocurrency market is experiencing its most challenging month of 2023. In July alone, losses amounted to a staggering $486 million, which is over six times higher than the total losses recorded in the entire year of 2022. The significant decline in value has raised concerns among investors and experts about the current state of the cryptocurrency market.

The report was released following a series of prominent hacks and exploits that occurred in July, and there has been a surge of legislative activity focusing on how cryptocurrencies and digital assets are treated.

As of now, the reported recovery total is merely $6.15 million, which means almost 99% of the cryptocurrency and digital assets stolen during July are still unaccounted for.

According to a document shared with Cointelegraph, the researchers at De.Fi express their concern that insufficient efforts are being made to swiftly recover the lost funds. This highlights the need for more proactive measures to address and resolve such incidents promptly in the cryptocurrency world.

The researchers emphasized that the cryptocurrency sector’s capacity to recover stolen or lost funds plays a crucial role in mitigating the impact of these regrettable incidents.

According to the report, the Ethereum network bore the brunt of the losses, with a total of $447 million lost across 36 cases. Notable among these incidents were the Multichain hack, which resulted in a loss of $231 million, and the Alphapo exploit, responsible for around $100 million in losses. These figures underscore the significance of bolstering security measures on the Ethereum network and the wider cryptocurrency ecosystem.