The crypto market continues to be faced with a slew of DeFi hacks all through Q1 2022, with such incidents up by 70+% compared to 2021.
- Ethereum’s valuation currently stands at AU $493B (US $362B), representing a crypto market share of approximately 19%.
- Incidents related to DeFi hacks have surged by a whopping 70% when compared to 2021.
- Non fungible token (NFT) transactions scaled up to an all time high of AU $2.3B last year.
Ethereum, the second largest cryptocurrency by total market capitalization, has continued to stay afloat around the AU $4,000 range (US $3,000) despite touching a relative high of AU $4,320 late yesterday evening. The ongoing volatility has resulted in the altcoin’s monthly gains slipping to just +1.5%. At press time, ETH is trading at AU $4,105.
This turbulent price action coincides with news of another major hacking incident to affect the crypto market. To this point, earlier this week, blockchain security provider BlockSec noted that DeFi protocol Zeed had been on the receiving end of an attack wherein the miscreant exploited a vulnerability using which they were able to mint additional tokens. However, in a surprising turn of events, the attacker fumbled a massive portion of his/her stolen funds, leaving behind approx. AU 1.3M (US $1M) of stolen crypto in a smart contract designed to self-destruct automatically.
The DeFi market has seen a growing number of such incidents rear their ugly head in recent months. Infact, over the first quarter of 2022 alone, more than AU $1.77B (US $1.3B) worth of digital assets have been stolen from exchanges, platforms, with these incidents up by a whopping 72% when compared with 2021.
Such cases not only malign the image of the crypto market as a whole but can also have a major impact on investor confidence, especially those individuals who may still be on the fence when it comes to the overall legitimacy of the digital asset industry.
Australian media giant goes all-in on NFT’s
According to reports, Australian sports firm Basketball Forever has just launched its latest offering, an NFT-centric project called ‘Hoop Hounds’ so as to maximise its fan engagement efforts as well as provide token owners with real-world benefits. In recent months, there has been a major upsurge in the number of utility-focused NFT projects — ala Bored Ape Yacht Club and Top Shot — where token owners are provided with access to real-world events and products in lieu of their purchases.
NFT’s have continued to generate a lot of interest globally, with reports suggesting that over the course of 2021 alone, these offerings have been able to record transactions in excess of US $17 billion. Therefore, it stands to reason that if NFTs are able to continue to maintain their current levels of interest, they could help drive the value of the digital asset market even higher.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
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