Dragonfly Partner: On-Chain Hacking Attacks Surge, But Stolen Funds Remain Flat Compared to 2025, Smaller Protocols Become Primary Victims

Dragonfly Managing Partner Haseeb Qureshi (@hosseeb) posted on X stating that the cybersecurity sector is experiencing a pandemic-like wave of attacks. He views on-chain breaches as a "warning signal" for the broader internet security landscape, as it remains the easiest place for cyberattacks to be monetized. He noted that while the volume of exploits in the crypto space has surged significantly, the annualized value of stolen assets remains roughly consistent with 2025 levels—indicating a trend of increased attack frequency offset by smaller individual amounts. Smaller, under-maintained protocols are facing mass breaches, while major protocols have already integrated AI tools to bolster their defenses. He anticipates that a similar dynamic will soon emerge in the traditional cybersecurity industry.