Crypto Hacks Cause Three Times Higher Damages Than Previously Assumed

Hidden Billion-Dollar Costs Through Loss of Trust

Crypto hacks cause far greater damage than previously known. A recent analysis by the Complexity Science Hub (CSH) shows that direct thefts from cyberattacks on crypto platforms account for an average of only around one quarter of the actual total damage^[1]. The vast majority of losses result from subsequent price declines of the affected tokens, which severely shake investor confidence.

Of 22 cyberattacks examined between 2020 and 2022, 12 led to very significant price crashes. Direct damages amounted to approximately 454 million US dollars, while indirect losses reached around 1.3 billion US dollars – nearly three times the immediate losses^[1].

Average 14 Percent Value Loss After Hacks

On average, affected tokens lost 14 percent of their value, accompanied by a sharp increase in trading volume^[1]. Many investors sold in panic or speculated on a recovery. The reaction of DeFi markets resembles traditional financial markets: scandals initially trigger strong sell-offs but can paradoxically also cause short-term price spikes^[1].

The study shows that trust damage has systemic effects. Not only the attacked project, but the entire DeFi ecosystem bears the consequences^[1]. With the growing user base – an estimated 300,000 people in Austria alone invest in cryptocurrencies – it becomes clear that DeFi is no longer a niche and security vulnerabilities pose considerable macroeconomic risks^[1].

Solana Ecosystem Affected by 38-Million-Dollar Hack

The relevance of the issue is demonstrated by the recent hack of South Korean crypto exchange Upbit, in which tokens from the Solana ecosystem worth 38 million US dollars were stolen^[2]. Despite the incident, the Solana price rose 3 percent within 24 hours to 143.19 US dollars, with daily trading volume increasing 16 percent to 5.35 billion US dollars^[2].

Network activity on Solana remains elevated, with strong transaction numbers driven by memecoin trading, DeFi swaps, and NFT-related transfers^[2]. This indicates that regular users have not left the blockchain and continue to interact with dApps, while security teams track hacker wallets.

Technical Perspective for Solana

From a technical standpoint, Solana is currently trading around 143 US dollars, positioned between the 50-day Simple Moving Average (SMA) near 169 US dollars and the 200-day SMA of approximately 179 US dollars^[2]. This means SOL remains in a correction phase after failing to hold above 200 US dollars at the end of October.

For traders: a daily closing price above 169 US dollars would push Solana above the 50-day SMA and open the path to the resistance zone of 180 to 200 US dollars^[2]. The case exemplifies how differently markets can react to security incidents – while the CSH study documents systematic loss of trust, Solana demonstrates short-term resilience.