Dragonfly's Haseeb Qureshi reports that annualized DeFi hack losses in 2026 remain below 2025 levels despite AI threats, with attackers increasingly targeting smaller protocols.
Security & Exploits ·
Dragonfly managing partner Haseeb Qureshi reports that annualized DeFi hack losses through 2026 have remained below 2025 levels and within historical ranges, countering predictions of an AI-driven "hackpocalypse" in the sector. While the frequency of incidents has increased, the median loss per individual hack has declined, suggesting attackers have shifted focus toward smaller or abandoned protocols rather than major targets. Losses tied to admin-key and multisig compromises have also fallen, and larger protocols have demonstrated improved resilience after implementing defenses against AI-enabled attacks. What remains unclear is whether this defensive strengthening will persist as attacker capabilities evolve, and how the risk landscape may shift if targeting of smaller protocols accelerates or consolidates.