Knock-knock, have you ordered any crypto news? Without further ado, we are rushing to you with new news from the crypto and blockchain world! This week, the market brought a wave of developments that could shape the near future of blockchain, DeFi, and digital asset investments. From the ongoing altseason, which can be the last (?), to stolen DeFi protocols.
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Bitcoin Price Retreats After Testing $120K
At the end of this workweek, Bitcoin (BTC) made headlines again as it briefly tested the $120,000 resistance level before experiencing a market correction. This may indicate selling by participants holding a position at this turn.
Against the background of an unsuccessful breakdown attempt, the net outflow of capital from spot bitcoin ETFs in the United States amounted to $285.2 million in three days, according to Farside Investors. This may indicate the short-term caution of investors.
Meanwhile, the BTC price pulled back after strong selling pressure, reminding investors of the volatility that remains a core characteristic of the crypto market. So, this Bitcoin price drop highlights the ongoing tug-of-war between bulls and bears amid regulatory uncertainty and macroeconomic shifts.
Ethereum Trading Volume Surpasses Bitcoin
Shifting to the news about Ethereum. In a significant shift, Ethereum (ETH) surpassed Bitcoin in trading volume across major exchanges. This surge reflects Ethereum’s increasing utility in DeFi, NFT marketplaces, and Web3 applications.
Santiment analysts are convinced that the upward trend will continue.
“The exchange rate of Ethereum to bitcoin has decreased by (about) 5.8% over the past 60 hours. Driven by FOMO, a sharp increase in ETH trading volumes, similar to the surge in early May, preceded the local high. If trade and social activity continue to decline, this may signal a new wave of growth amid profit, taking by retail,” they explained.
As we can see, the growing adoption of Ethereum-based services has positioned it as the most active blockchain ecosystem, bolstering investor confidence in ETH as a leading digital asset.
Hackers Seize Abandoned DeFi Protocols
But unfortunately, the week has not been without negative news. A troubling trend emerged as hackers gained control of over 100 abandoned DeFi protocols.
Hackers exploit old domains of already inactive dapps, which are still listed on prominent platforms like DeFi Llama and DappRadar, or featured in the news. After interception, cybercriminals inject malicious code and change the content of the site.
To sum up, these exploits show the importance of smart contract audits, continuous platform maintenance, and active governance. As DeFi security remains a critical topic, users and developers must prioritize secure infrastructure to avoid such attacks and protect TVL (Total Value Locked).
Hidden Unemployment in Ethereum and Solana Ecosystems
On the most interesting insights of the week – new investigative reports have uncovered a concerning rate of “hidden unemployment” among developers in Ethereum and Solana. This is reported by CoinDesk with reference to DeFi Llama.
A similar phenomenon can be observed in the field of blockchain: there are many decentralized protocols, but their practicality remains uncertain. The situation is reminiscent of “ghost towns“, only in a digital format.
The Ethereum network has 1,271 active protocols. According to information from DeFi Llama, 88% of them have not generated revenue in the last month. In the Solana ecosystem, where 264 protocols are running, the share of unprofitable projects was 75%.
As a result, despite growing on-chain activity, many projects are struggling to retain talent or secure funding, casting doubt on the long-term sustainability of some Web3 initiatives. Shortly, this development suggests a need for more transparent employment tracking and developer incentives.
Analyst Predicts the End of Traditional Altcoin Seasons
Finishing the digest with kind of controversial news. A leading crypto analyst suggested that the era of massive altcoin seasons could be fading. The reason is oversaturation and a decrease in the correlation between assets, according to CryptoQuant author and on-chain analyst Timo Onionen.
As institutional investors shift their focus to Bitcoin and Ethereum, lesser-known altcoins may struggle to gain momentum.
The expert anticipates that investors will become more discerning in their approach. Rather than a broad-based surge across the entire market, individual altcoins with strong fundamentals will experience growth. Onionen emphasized that there is unlikely to be a “massive altseason” similar to those seen in 2017 and 2021.
Final Thoughts
To sum it up, from Bitcoin’s price movement to Ethereum’s growing dominance and DeFi’s security concerns, this week underscored key crypto market dynamics.
The market shifts every week. This is why you need to stay informed to navigate the evolving blockchain landscape and make smarter Web3 investment decisions. And our crypto news digest will be glad to help you with this task!
Moreover, the Evercode Lab’s team can help you develop a trendy, future-proof, secure Web3 product that will drive the crypto market. If you want to explore the new opportunities of your service and discover the full potential of the crypto market and Web3 solutions, please contact our team today!