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Ethereum's first inflows
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Bitcoin outflows continue as Ethereum sees its first inflows in seven weeks
Key points:
Digital asset investment products have seen outflows for four consecutive weeks.
Ethereum recorded its first inflow in seven weeks at $30 million.
News - Digital asset investment products have extended their losing streak for a fourth consecutive week, with outflows totaling $251 million.
Bitcoin continued to be the main driver of this decline, accounting for $284 million in outflows alone. However, there was a glimmer of hope for Ethereum, which managed to break its seven-week outflow trend with inflows of $30 million.
Reasons behind Ethereum registering inflow - Analysts believe this positive shift for Ethereum could be linked to two key factors: the recent launch of Bitcoin and Ethereum spot ETFs in Hong Kong and the much-anticipated decision from the US on whether to approve pending Ethereum ETF applications.
On-chain metric - Ethereum's press time MVRV ratio of -3.447% suggested that holders would incur an average loss if they sold all their holdings at the present price. While a negative reading might seem like a good buying opportunity, historically, the best entry points for Ethereum have emerged when the MVRV ratio falls between -7% and -18%.
This hinted that investors waiting for a significant dip in Ethereum's price might need to be patient for a little longer.
$71M in stolen crypto funds on the move after wallet impersonation scam
Key points:
A crypto investor fell victim to a sophisticated wallet impersonation scam on 3 May.
The scammer tricked the victim by creating a wallet address visually similar to the legitimate one.
News - Cryptocurrency investors were shaken this week after news emerged that a staggering $71 million worth of Wrapped Bitcoin (WBTC) had been stolen in a sophisticated phishing scam.
The incident, which occurred on 3 May, serves as a stark reminder of the ever-present threat of cybercrime in the digital asset space.
How did the scam occur? The scam involved the creation of a fake wallet address that closely resembled the legitimate one the victim intended to use. Hackers often exploit user interfaces that abbreviate long wallet addresses, focusing on manipulating the first and last few characters displayed for visual appeal. This tactic successfully deceived the victim, who unknowingly transferred 97% of their WBTC holdings to the scammer's wallet.
The aftermath - Following the theft, the stolen funds were converted into Ethereum (ETH), a more liquid cryptocurrency often used by criminals due to its larger trading volume and potential for anonymization through privacy protocols like Tornado Cash.
The hacker then held onto the stolen ETH for six days before attempting to launder it. This involved breaking down the large sum into smaller portions and distributing them across a network of roughly 400 separate crypto wallets. The investigation is ongoing, with authorities attempting to identify and apprehend the perpetrators behind this significant cyber heist.
Uniswap, MKR register steep drop in transaction volume; market confidence wavers
Key points:
The decrease in volume and price performance of both the tokens could be linked to waning interest in DeFi tokens.
However, analysts suggest a potential recovery for UNI and MKR.
News - Uniswap (UNI) and Maker (MKR), once DeFi darlings, are facing a harsh reality check after a promising start to 2024. Following a remarkable rise in transaction volume in March, both tokens have witnessed a sharp decline in recent weeks. Data from IntoTheBlock reveals a staggering 71.30% drop in transaction volume compared to March's peak.
This slump in activity coincided with a nosedive in tokens’ prices. Analysts believe this downturn could be attributed to a waning interest in DeFi tokens.
What’s more? The recent surge in popularity of meme coins might be stealing some of DeFi's thunder. This was further reflected in the DeFi rankings based on Total Value Locked (TVL). Both Uniswap and Maker have been displaced from their top positions, with Maker dropping from the top third to number four and Uniswap falling to sixth place.
In the short term, analysts predict that Uniswap and Maker's transaction volume might not reach the heights seen in March, and their prices might stagnate for a while. However, a broader rally in the altcoin market could breathe new life into these tokens. If that happens, UNI might revisit its $10 mark, and MKR could potentially climb back to $3,300.
FTX plans to pay creditors 100% of claims plus interest, pending court approval
Key points:
Bankrupt crypto exchange FTX has proposed a surprisingly generous repayment plan for its creditors.
To generate the necessary funds, FTX has liquidated various assets.
News - In a surprising turn of events, bankrupt cryptocurrency exchange FTX has unveiled a new reorganization plan that proposes remarkably generous repayment terms for its creditors.
According to documents filed on Tuesday, a whopping 98% of creditors would receive a full refund of their claims, with an additional 18% bonus, all paid in cash within 60 days of court approval.
More details - This proposal significantly improves upon earlier estimations from FTX, which previously anticipated a 90% repayment for customer funds. John Ray III, the current CEO of FTX, had revised this estimate in January, expressing confidence in repaying customers in full.
The estate claims the substantial sum available for distribution, estimated between $14.5 and $16.3 billion, is the result of a year and a half dedicated to gathering and liquidating FTX's scattered assets worldwide.
The Delaware bankruptcy court now holds the ultimate decision on approving this new plan, offering a potential light at the end of the tunnel for FTX creditors.
More stories from the crypto ecosystem
Did you know?
Solana differentiates itself through its unique Proof of History (PoH) consensus algorithm. This speeds up transaction validation and keeps costs low.
Cardano's ADA token is named after Ada Lovelace, a 19th-century mathematician and visionary whose ideas are thought to have inspired the development of modern computing.
Layer 2 solutions are built on top of existing blockchains (layer 1) to address limitations like scalability and transaction fees. They essentially act as an off-chain layer that handles transactions faster and cheaper.
Top 3 coins of the day
Ethena (ENA)
Key points:
BitMEX co-founder Arthur Hayes predicts ENA could reach $10 as Bybit integrates Ethena’s Stablecoin USDe.
Bybit has added USDe as a collateral asset for perpetual futures trading with leverage.
What you should know - The crypto community has found a new token for their portfolio. Many analysts like Arthur Hayes think that ENA has the potential to reach $10 on the back of its market-related developments. The token has been trying to push past the $1 mark over the last day. At press time, it was trading at $0.8933 with a 12.48% increase in the past seven days. On the back of short-term bullish momentum, $0.735-$0.807 can be a good area to enter the market with a stop loss at $0.631. The take-profit zone can be within $1.222-$1.346. The width of the Bollinger Band (BB) showed that the volatility could be on the cards soon.
Polygon (MATIC)
Key points:
At press time, MATIC was trading at $0.6756 with bears in charge.
Trading volume in the Derivatives market was considerably down.
What you should know - MATIC maintained a steady uptrend from 24 January to 13 March. As soon as the price reached $1.2900, traders resorted to profit-taking. Consequently, selling pressure took the alt to find support at the $0.9474 level. But MATIC couldn’t reverse the trend, following which $1.2900 turned into a resistance. Beginning 13 April, the alt has been trading within a tight range of $0.6422 and $0.7709. The reading of RSI, at press time, hinted MATIC could go deep into the oversold territory within the next few days.
Near Protocol (NEAR)
Key points:
In the past week, NEAR increased by 19.86%.
Its Open Interest has fallen after 6 May.
What you should know - Out of the top 20 coins, NEAR stood third in the ranking of coins with the highest 7-day gains. After 6 March, the coin saw massive bullish demand which took the alt to a level last seen on 12 May 2022. After reaching a high of $9.010, NEAR retraced back and found support at $6.352. At press time, it was exchanging hands at $7.205 with a resistance level marked at $8.770 and support at $6.007. The leading indicator MACD stayed flat but stood above the neutral line - This revealed that a short-term pullback can be expected soon.
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