A new report from security firm TRM labs shows that attacks on token protocols, crypto projects and other digital assets dropped by 70% in Q1 of 2023 when compared with the same period last years. At that time, greed and valuations were rampant.

The amount stolen in the first quarter of this year was less than in any quarter from 2022. This shows better security measures, and suggests a general drop in easy exploits.

TRM Labs reported that the average hacking size fell to $10,5 million from $30 million during the same quarter in 2022. The number of incidents remained the same (around 40), but the average hacking cost also dropped.

The firm said that hacking victims had recovered more than half of the funds stolen in Q1 2023. In March 2023, for example, a hacker took advantage of a bug that existed in Tender.fi code to steal USD 1.5 million. The hacker contacted Tender.fi later and agreed to return funds in exchange of a bug bounty worth $850,000.

Due to its inherent vulnerability, the cryptocurrency ecosystem has been a target of hackers for a long time. The significant decrease in crypto hacks over the first quarter 2023 indicates that the industry is actively addressing the challenges and has implemented proactive security measures.

The market suffered a loss of over $3.7 billion in 2022 due to hacking, scams and other attacks. In 2021, attackers made over $3.2 billion. The year 2022 started off even more rocky with a $325-million attack on the popular cross-chain Wormhole service, followed by a $625-million attack on Axie Infinity’s Ronin Bridge, and then $200 million of an exploit of Nomad bridge.

According to TRM Labs the decline in crypto hacks this year could be attributed a variety of factors including improved cybersecurity, stricter regulatory structures and increased collaboration between industry participants.

However, there are still reasons to be concerned.

TRM Labs stated that “unfortunately, this is more likely to be a temporary respite than a trend over the long term.” They added that the majority of the money stolen from crypto platforms or users comes from a few large scale attacks, which can lead the total amount stolen month-to-month to fluctuate dramatically.

The report concluded that “the ten biggest hacks in 2020 accounted for about 75% of the total stolen amount in 2022.”