The cryptocurrency world has been on edge in recent weeks. The market is constantly volatile, the prices of major cryptocurrencies have fluctuated significantly, and major security vulnerabilities in many cryptocurrency exchanges have drawn more attention to cybersecurity issues in the field of digital assets. Let’s take a closer look.
Tier 1, Tier 2 and DeFi
Market Conditions: The Cryptocurrency Circus
This time is full of challenges and breakthroughs. For enthusiasts and investors alike, this is an area of constant change, ensuring that there is never a dull moment in the cryptocurrency world!
in short:
Hacking attacks have had an impact on the cryptocurrency space, with well-known exchanges Poloniex, Kronos Research, Velodrome, Aerodrome, Heco Bridge, and especially Kyber all suffering from security issues.
Digital asset investment products received $346 million in inflows.
Arbitrum’s activity and inflows increased, outpacing other secondary solutions.
Blast, an Ethereum-based secondary network, attracted $621 million in locked value within 10 days of launch.
hacker attack
In recent developments, the digital asset space continues to be plagued by serious security breaches. It is worth noting that Poloniex suffered a major hacker attack, resulting in a loss of approximately $114 million. In addition, Kronos Research, known for its algorithmic trading and market making, suffered a security breach and lost $26 million.
The incidents also involved Velodrome and Aerodrome, whose front-end systems were compromised. These incidents highlight the ongoing vulnerability of digital asset platform infrastructure. In addition, the cross-chain interoperability platform Heco Bridge was hacked, causing a staggering $115 million in losses.
These incidents are not isolated, but part of a series of significant vulnerabilities in the digital asset space. The most high-profile incident this week was Kyber Network, where hackers made specific demands. The incident caused considerable concern in the community. Here are some of the things the hackers asked for.
The cumulative effect of these hacks is manifold. On the one hand, they undermine trust in the digital asset space and raise concerns among investors and users. On the other hand, some analysts believe that these ongoing attacks help strengthen the ecosystem by revealing and resolving vulnerabilities, thus providing a real-life test of the infrastructure.
While the field has shown great resilience, the persistent nature of these attacks poses a key challenge. The path to a more secure and robust digital asset environment depends on effectively addressing and mitigating these security vulnerabilities.
This evolution is essential for the advancement and mainstream acceptance of digital assets and blockchain technology. This situation also often prompts regulators to consider and potentially implement stricter regulatory measures to protect investors and maintain market integrity, ultimately having a hindering effect on the crypto industry.
capital inflow
Inflows into digital asset investment products enjoyed a nine-week streak of growth last week, reaching $346 million, driven largely by expectations for the launch of U.S. spot exchange-traded funds (ETFs). The surge in inflows pushed total assets under management to $45 billion, surpassing its highest level in a year and a half.
Canada and Germany contributed 87% of total inflows, while the United States, which is awaiting the launch of the ETF, is expected to see only $30 million in inflows. Additionally, other cryptocurrencies such as Solana, Polkadot, and Chainlink received inflows of $3.5 million, $800,000, and $600,000 respectively.
The number of activities in the derivatives market has increased significantly, with DEX trading volume expected to exceed $7.5 billion, the highest monthly total since February 2022. DYdX is emerging in the perpetual contract ecosystem. Currently, it is firmly entrenched with a strong daily trading volume of around $1 billion.
Arbitrum has been active lately. This is mainly due to the introduction of new short-term incentive schemes. Launched in September 2023, the program aims to allocate up to 50 million ARB tokens from the Arbitrum DAO Treasury to support its ecosystem, specifically decentralized applications and DeFi projects.
Currently, there is more money pouring into Arbitrum than any other L2. Source: DefiLlama.
Blast, a new Ethereum-based Layer 2 network, has reached $621 million in total value locked within 10 days of its launch, approaching Solana’s TVL. Blast was founded by Tieshun “Pacman” Roquerre, who is also the creator of NFT marketplace Blur.
Bottom line: Despite recent challenges and security breaches, the crypto market remains healthy and on a positive trajectory. Major exchanges face regulatory issues, but markets remain stable. Hacks have occurred, raising security concerns, but the market continues to show resilience. The $346 million flowing into digital asset investment products indicates strong investor confidence. Layer 2 solutions like Arbitrum are experiencing growth, while new networks like Blast are gaining traction.
Blue Chip Stocks and Key Assets Overview
Source: Tradingview.
Mantle has had a strong performance over the past week, rising 13%. In fact, MNT has been trending upward since October 19, 2023, with an impressive return of 62.5%. Currently, Mantle is the sixth largest Layer 2 platform in the world, with a total locked value of $218 million
Source: Nansen.
dYdX experienced an 8.5% drop ahead of a major token rally due to launch in December. The event will introduce $50 billion worth of tokens into the market, a development closely watched by investors and market analysts.
Terra Luna Classic (LUNC) has experienced a significant surge, increasing its valuation by 60% in the last week. Since October 20, LUNC’s valuation has increased by a staggering 111.4%.
BNB has seen a 4% decline over the past week amid ongoing legal challenges involving former CEO Changpeng Zhang. The situation escalated further as Zhang Changpeng was formally designated as a flight risk during prosecution proceedings.
UNI rallied from $4.90 to $6.35 between November 22 and 28 as liquidity increased due to events at Binance. However, the price has since dropped to $5.90.
Since November 27, TORN has fallen 57% after being delisted by Binance.
SOL is up 5% this week. This is partly due to the fact that Solana-based memecoin BONK has performed well, rising 600% in the past 30 days.
XRP fell below the $0.60 support line after whales sold over 57 million XRP tokens, but has since recovered.
Smart money trends
Token
BitStable ($BSSB) has attracted the attention of smart money for generating stablecoins using Bitcoin ecosystem assets as collateral - a project that has generated considerable interest.
Smart Money has also acquired some $Auction recently, which may have been influenced by the launch of $BSSB on its platform (Bounce Finance).
Another notable development this week is smart fund bidding on $BYPASS, a bot that allows users to trade on centralized exchanges like Binance without logging in.
In addition, $PLANET has also attracted the attention of smart funds, performing well in real-world asset narratives.
Over the past week, several smart fund addresses accumulated $RVF.
Liquidity mining
Smart farmers are mining ETH and stablecoins on Ambient Finance’s Scroll, waiting for the $Ambient airdrop, and there may be a $Scroll airdrop soon:)
Lybra Finance remains a top choice among big investors.
Smart Farmers work closely with Prisma Finance and participate in various pools that offer decent APYs, including parent currency mkUSD/USDC - Convex has an unaccelerated APY of 29.37%, with a total locked value of $3.67 million!
Some smart farmers have purchased $BLUR and deposited it into blur.io to earn $BLUR S 3 points.
Important on-chain trends
GSR made a significant acquisition, acquiring $2.5 million worth of $HFT, representing nearly 5% of the circulating supply, and depositing it into newly created addresses.
Recently, a whale (0 x d5) removed 35% of $Sidus’ on-chain liquidity.Please check their Debank profile。
This is just a preview of our weekly report on L1, L2 and DeFi, be sure to check out the full version of the report here
NFTs and games
Project updates
ReadON and MOBOX announce strategic partnership to unify Web3 gaming community
Ubisofts t"NFT Championship Tactics"The game is coming to Animocas"Mocaverse"。
Japanese giantSquareEnixNFT auction for new Web3 game to be launched on Ethereum and Polygon t
Azuki DAORenamed Bean and dropped lawsuit against founder ZagabondPudgy PendguinsLaunched an exclusive Walmart product called the “Influencer Gift Box
Game studioThe gaming studio behind an NFT mobile shooter raises $10 million.
Magic EdenLaunched wallets supporting Bitcoin, Ethereum, Solana and Polygon. Users can apply for the waitlist via their Twitter link
,according toCoinGecko researchAccording to the survey, 2,127 Web3 games failed in the past five years, accounting for 75.5% of the total, with an average failure rate of 80.8%
New L2 platform built by Blur founder PacmanBlast,Reached $600 million in total locked value in 10 days.
Social activity continues to hit new highs across multiple projects. Blur is expected, but the additions of Floki, Naka, and VRA are also worth watching.
Source: LunarCrush.
Blue Chip Overview
NFT transaction volume continues to rise, indicating continued user interest in traditional NFTs. Despite concerns about the negative impact of a bear market on NFTs, the popularity of these digital collectibles remains high, with users recognizing their value.
The established family of blue-chip NFTs can be expected to maintain their importance and value in the future. It’s worth noting that while Crypto Punks held the top sales position over the past seven days, this original blue-chip series has either dropped in the rankings or moved towards the lower end. Furthermore, Ordinals are showing significant trading volume on markets like OKX, suggesting that this trend is becoming a permanent feature of the Bitcoin ecosystem.
Top 10 series from the past 7 days. Source: DappRadar.
Blur continues to lead in terms of NFT transaction volume, surpassing OpenSea, proving that sound incentives can overcome the advantages of being a first mover in the space.
However, users should note that Blur is flagged for higher levels of money laundering transactions. OKX’s NFT marketplace recently launched successfully and has seen a significant increase in trading volume, with the majority of that volume coming from BTC Ordinals. Meanwhile, Magic Eden has established itself as the go-to marketplace for NFTs on Solana.
Blur continues to lead in NFT transaction volume, surpassing OpenSea, proving that sound incentives can overcome the advantages of being a first mover in the space
However, users should note that Blur is flagged for higher levels of money laundering transactions. OKX’s NFT marketplace recently launched successfully and has seen a significant increase in trading volume, with the majority of that volume coming from BTC Ordinals. Meanwhile, Magic Eden has established itself as the go-to marketplace for NFTs on Solana.
Top 5 NFT markets in the past 30 days, including non-EVM metrics. Source: Footprint Analytics.
The Ethereum main chain remains the main hub for NFT transactions, and many users prefer to trade on the main chain. Despite the growth of successful NFT platforms on Layer 2 solutions like Arbitrum and Optimism, NFT transactions on these networks have yet to gain significant traction.
Interestingly, even as trading volume and liquidity continue to increase within the Arbitrum ecosystem, NFTs appear to remain a secondary focus for Arbitrum traders, while Polygon continues to be the top choice for NFTs on the L2 network.
Top 10 NFT games of the past 7 days Source: DappRadar.
Degen Corner
DeFimons continues to make significant progress. The game is currently free to play, with major blockchain integration coming soon. existhereGive it a try.
PixelsIt is a casual farming game that is gradually becoming popular on the Ronin chain of the Axie Infinity ecosystem. The concept of the game revolves around resource gathering, farm building, and joining others to participate. Check it out here.
Duel Arenais a one-on-one dueling game with Ether prizes that has been integrated into Cambria. In this mini-game, players stake their ether in the on-chain escrow system and participate in a life-or-death showdown to obtain the staked ether. The game is currently ongoing and has grown significantly, with over $1 million in Ethereum staked due to its duels
KamigotchiKamigotchi is an on-chain pet RPG game developed on Canto and now planned to be released on Optimism Layer 2 (L2). The games mechanics are similar to Pokémon and includes an on-chain room system. While there is no exact release date, it is expected to be released in the first half of 2024. Please keep an eye on this.
Gaming-related tokens have seen significant growth over the past week: $MAGIC (+16%), $ILV (+8.3%), $RON (+28.2%), $WILD (+32.9%), $RARE (76.4%), TLM (16.9%) and $GENE (48.1%).
Major leaders in the NFT space like $IMX (-9.3%) and $BLUR (-2.3%) have pulled back after their recent gains.
This is just a preview of our weekly NFT report, be sure toherecheck out the full version.
