XRP hack uncovered

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XRP falls 5% following alleged $112.5M hack on executive chairman's account

Key points:

• $112.5 million worth of XRP was stolen from Chris Larsen's personal account, not the Ripple network.

• XRP has been on a downtrend ever since the news of the hack. At press time, it was reeling under heavy sell pressure.

News - Ripple's XRP token experienced a sharp drop of over 5% on Wednesday amidst reports of a major hack. However, the company clarified that the breach originated from founder Chris Larsen's personal accounts, not the Ripple network itself.

What was the initial report? Initial reports surfaced through blockchain analyst ZachXBT, who claimed 213 million XRP tokens, valued at roughly $112.5 million, were stolen from a large wallet and laundered through various exchanges. Concerns immediately mounted due to the significant sum involved.

However, Larsen swiftly addressed the situation, confirming a breach targeting his personal XRP holdings but emphasizing that the Ripple network remained secure. He further stated that swift action was taken to alert exchanges and freeze the affected addresses, collaborating with law enforcement in the investigation.

What’s more? Besides, some developments in the XRP Ledger (XRPL) ecosystem, such as the recent exit of two key validators, have also sparked debates in the XRP community. Well, at the time of reporting, XRP was the sixth-largest cryptocurrency by market cap, it saw a 3.31% fall over the last seven days. And in the last 24 hours, its trading volume shrunk by 22.40%.

Polygon’s zkEVM struggles despite new DeFi push and MATIC price surge

Key points:

• Polygon zkEVM's performance declined in recent weeks, with metrics like TVL and fees dropping.

• A $50,000 DeFi event and focus on dApp development aim to revitalize the L2 solution.

News - While Polygon's native token, MATIC, enjoys double-digit price growth, its flagship L2 solution, zkEVM, faces an uphill battle. Despite a planned DeFi event and focus on dApp development, the rollup's performance has been declining in recent weeks.

Key metrics like Total Value Locked (TVL), fees, and revenue all dipped significantly last month, revealing lackluster DeFi performance. Network activity also remained low, with daily active addresses and transactions falling short.

What to expect in the future? However, a glimmer of hope emerges with a $50,000 DeFi event planned for February, aiming to attract new projects and users. Additionally, zkEVM entered its second phase, dedicated to fostering dApp growth, potentially fueling future expansion.

Despite these initiatives, zkEVM currently lags behind competitors like zkSync Era and Base in key areas like active addresses and daily transactions. Only revenue shows promise, with all three rollups neck-and-neck.

In contrast, MATIC's price surged over 13% in the last week, bolstered by positive sentiment and increased social media discussion.

Celsius emerges from Chapter 11 bankruptcy, set to distribute $3B to creditors

Key points:

• Members of a special board that steered Celsius through bankruptcy said ‘everyone assumed Celsius would disappear completely’.

• In 2022, CEL's price fell drastically, following which the company paused withdrawals.

News - Celsius Network, the crypto lender that filed for bankruptcy in 2022, has emerged from Chapter 11 after striking a deal with creditors and creating a new Bitcoin mining company. Announced on January 31st, the company will begin distributing $3 billion worth of crypto and fiat currencies to its creditors while launching a new venture named Ionic Digital.

Important developments -

• Celsius will allocate $3 billion to creditors, with an additional $250 million gained through converting crypto holdings to Bitcoin and Ethereum.

• Ionic Digital, a Bitcoin mining firm managed by Hut 8, will be owned by Celsius creditors and its stock is expected to be publicly traded in the future.

• The company will discontinue its mobile and web applications by February 28th, with creditor distributions handled through PayPal, Venmo, and Coinbase.

Celsius has faced settlements with various US regulatory bodies for a total of $4.7 billion. Its former CEO Alex Mashinsky awaits trial for alleged financial fraud. Despite initial expectations of complete closure, the firm successfully navigated bankruptcy with 98% creditor approval.

US government demands crypto miners report energy consumption for six months

Key points:

• The recent Bitcoin price surge raises concerns about increased mining activity and its impact on electricity demand.

• US crypto miners must report their energy consumption for the next six months to the Department of Energy.

News - The United States Department of Energy (DOE) is taking a closer look at the energy consumption of crypto mining operations. Amidst concerns about a recent surge in Bitcoin prices and its potential impact on electricity usage, the DOE's Energy Information Administration (EIA) is launching a six-month survey to gather data from local crypto mining companies.

More details - The survey aims to understand trends in crypto mining energy demand, identify areas of high growth, and determine the types of energy sources used by miners. This follows previous actions by US lawmakers and regulators, including congressional hearings on energy use and emissions, calls for EPA investigations, and a proposed 30% tax on crypto miners' electricity costs.

Previous investigations by lawmakers and calls for environmental impact assessments have now evolved into a comprehensive survey targeting energy consumption.

Bitcoin miners globally consumed a record-breaking 121.13 terawatt-hours of electricity in 2023, according to Cambridge University's Bitcoin Electricity Consumption Index, sparking concerns over the industry's environmental impact. The International Energy Agency (IEA) forecasts an increase in crypto-mining energy consumption to 160 terawatt-hours by 2026.

More stories from the crypto ecosystem

• Can BNB achieve mass adoption in 2024? What the roadmap suggests

• Analyzing MANTA’s 6% price crash – Reasons why predictions are bearish

• SHIB looks to a better February after losing 14.50% in January

• Solana: Waning NFT and network activity, while SOL is…

• USDT leads the way as stablecoin inflows cross $400M

Did you know?

• The crypto landscape is constantly evolving with new projects, technologies, and trends emerging frequently. However, the energy consumption and potential e-waste from mining raise environmental concerns.

• Anyone with an internet connection can participate in the crypto ecosystem and the crypto community spans borders, fostering collaboration and innovation across nationalities.

• The best Bitcoin and cryptocurrency mining software can currently mine a Bitcoin or other cryptocurrencies in just 10 minutes.

Top 3 coins of the day

Solana (SOL)

Key points:

• Solana came out as the biggest blockchain for stablecoin transfers in January, surpassing the likes of Ethereum and Tron for the first time.

• Recently, SOL regained its bullish strength, bouncing above $100 for the first time in more than two weeks.

What you should know - 1st February saw SOL declining on the price chart. The prices were on their way down to retesting the immediate or near-term demand zone around $80. SOL traded at $96.51, at the time of this report. If bulls regain control, the coin could easily go up to its psychological resistance of $100. A strong zone of liquidity appears near the range of $116-$124. Interestingly, the MFI indicator stood at the 53-mark pointing upwards. Thus, revealing that the coin was in a period of balanced buying and selling.

Polkadot (DOT)

Key points:

• The Polkadot ecosystem has experienced significant growth in terms of social engagement.

• The project's growing partnership with other protocols, as well as certain upgrades, have helped it get to this point.

What you should know - On the 24-hour price chart of DOT, a wedge was seen to be forming. It showed that the prices might continue trading sideways for a couple of more days. However, on a macro-frame, the coin has been in an uptrend since 20 October. At the time of writing, it was changing hands at $6.68 with a 2.69% gain over the last week. The RSI indicator too gave mixed signals as the RSI line was halted at the 42-mark without any clear direction of where it could go next.

Avalanche (AVAX)

Key points:

• On 31st January, validators on the Avalanche network reached an all-time high, with the number sitting at 1,729.

• The volume also saw a spike, growing from 326.45 million on the 21st of January to 741 million on the 31st of January.

What you should know - The press time price of AVAX was below its 50-day Simple Moving Average (SMA). This can be considered a negative signal as a further fall in price can easily be expected in the near future. Even the reading of the Awesome Oscillator revealed the same prediction. At press, the coin was trading at $33.19 with a fall of 2.19% in price over the last day. Lastly, the Fear and Greed Index revealed that the market sentiment was bearish and fear prevailed among the traders.