Decentralized Finance (DeFi) experienced substantial losses due to hacks last year, according to CryptoSlate analyst Liam Wright. According to NS3.AI, Wright highlighted that DeFi lost $2.8 billion on a transaction volume of $46 trillion, resulting in a loss rate 85 times higher than that of traditional finance. In contrast, IBM data revealed that traditional financial institutions incurred losses of $2.6 billion on approximately $35 quadrillion of transaction volume. This comparison underscores the heightened vulnerability of DeFi systems to security breaches compared to their traditional counterparts.