Despite the rise of decentralized finance (DeFi), cryptocurrency investors appear to be sticking to centralized exchanges (CEXs) over DeFi tools, according to a new report. Crypto investors are more comfortable holding their assets on CEXs because decentralized exchanges are still more vulnerable to the threat of hacks. This is according to a joint report by the blockchain data firm Chainalysis and Bitfinex exchange, issued on Oct. 13. According to the study, the risks of hacks associated with CEXs have dropped significantly over the past few years, while various DeFi platforms have becom increasingly hacked. The total value stolen from centralized crypto platforms has dropped by 58% from $972 at its peak in 2018 to $413 in 2021, according to data from Chainalysis. The amount of hacks on CEXs has continued to drop this year, as $80 million has been stolen from centralized crypto platforms so far in 2022. In contrast, DeFi hacks have been booming r, as DeFi-related hacks now account for 96% of theft losses, already standing at $2.2 billion in 2022.
Read more : Hodlers prefer centralized exchanges over DeFi for security: Chainalysis.
