The Ethereum network has been hit hard in Q3 2024, with cyber security firm CertiK revealing that despite fewer hacking incidents, the total value stolen soared to $753 million across 155 incidents. This brings the total losses for the year to an astonishing $2.2 billion.

In CertiK’s Web3 Security Report, the firm highlighted that while the number of hacks declined compared to the previous quarter (27 fewer incidents), the severity and scale of these attacks have increased dramatically. In Q3 alone, phishing attacks and private key compromises accounted for the majority of the losses, contributing a staggering $668 million. Phishing specifically caused $343 million in damages across 65 incidents.

Major Losses: One of the most significant incidents involved a Bitcoin whale who suffered a $238 million loss in a phishing attack in August, marking the largest single incident for Q3. Private key compromises also wreaked havoc, with WazirX, one of India’s largest crypto exchanges, losing $231 million due to a private key vulnerability.

Of all the attacks recorded, Ethereum emerged as the prime target. Over $387.8 million was stolen in 86 incidents, far exceeding losses on other blockchains. Ethereum's cross-chain functionality was also exploited, leading to $89.8 million being stolen across various networks.

Impact on Ethereum: Despite these significant losses, CertiK remains optimistic about Ethereum’s future, particularly as institutional interest grows. Ethereum’s spot ETFs have gained traction, with BlackRock’s ETHA fund surpassing $1 billion in total net asset value just two months after launch.

On-chain activity suggests Ethereum is steadily recovering from the crypto bear market, with Total Value Locked (TVL) increasing and the number of new wallet addresses rising. DeFiLlama’s data shows a significant uptick in TVL towards the end of September, marking a positive sign of recovery despite the recent hacking incidents.

Conclusion: The rise in crypto theft underscores the growing risks associated with blockchain technologies, especially as the ecosystem expands. CertiK noted that while ecosystem growth drives innovation, it also introduces new vulnerabilities. Ethereum’s prominence in the crypto space makes it a frequent target, but the growing institutional adoption reflects confidence in its long-term value and security.