Haseeb Qureshi, managing partner at crypto venture capital firm Dragonfly, predicted that annual losses from decentralized finance (DeFi) hacks will decline in 2026 compared to the previous year, even as concerns about artificial intelligence (AI)-based attacks persist. His assessment provides a counterpoint to widespread fears that AI would trigger a rise in sophisticated cryptocurrency thefts.
Why losses are decreasing despite more hacks
According to Qureshi, the number of hacking incidents targeting DeFi protocols has actually increased. However, the average financial loss per incident is steadily declining. This trend suggests that attackers are increasingly focusing on smaller, less secure, or outdated protocols rather than the large, well-hardened platforms that hold the bulk of user funds.
Qureshi noted that losses resulting from compromised admin keys and multi-signature wallets have also decreased. This indicates that the industry’s operational security practices are evolving. Large protocols, in particular, have invested heavily in hardening their systems against conventional exploits and emerging AI-based attack vectors.
The Unrealized Threat of AI in DeFi
Although the potential for AI to automate vulnerability discovery or execute complex, adaptive attacks has been the subject of intense discussion, Qureshi said those fears have not yet materialized into a major crisis. The absence of a catastrophic AI-based hack in 2025 supports the idea that current AI models are not yet capable of reliably breaking the defenses of leading DeFi protocols at scale.
This does not mean that the threat is non-existent. Security teams are actively developing AI-powered defensive tools to monitor anomalous behavior and remediate vulnerabilities faster than human teams alone could. The ongoing arms race between attackers and defenders is moving toward automation on both sides.
What this means for DeFi users and investors
The decline in average hack losses is a positive signal for the overall health of the ecosystem. This implies that the most valuable assets become more secure and that best security practices become the norm among serious projects. For users, this reinforces the importance of sticking to established, audited protocols rather than chasing high returns on unaudited or anonymous platforms.
For investors and developers, the data suggests that while the number of attacks is not decreasing, the financial impact is contained. This could reduce the risk premium associated with DeFi investments, potentially attracting more institutional capital into the space.
Conclusion
Dragonfly’s Haseeb Qureshi’s prediction offers a cautiously optimistic outlook for DeFi security in 2026. Although the threat landscape remains active, the industry’s response – through improved defenses and a shift in attackers’ focus to smaller targets – appears to be effectively limiting overall financial damage. The expected AI crisis has not occurred, giving the industry more time to build robust, automated security systems for the future.
FAQs
Q1: Why are DeFi hack losses expected to decrease in 2026?
Because the average loss per hacking incident is decreasing, even though the total number of incidents is increasing. Hackers are targeting smaller, less secure protocols, while larger platforms have beefed up their defenses.
Q2: Has AI made DeFi hacking worse?
Not yet. Despite widespread fears, no major AI-driven hacking crisis has materialized. Current AI models fail to reliably break the defenses of leading DeFi protocols at scale.
Q3: What can DeFi users do to stay safe in 2026?
Users should prioritize established, audited protocols over anonymous or unaudited platforms that offer high returns, as these are the main targets of current attacks.
