Market update

Cointree Crypto Market Update - July 3rd 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$91,088, moving -2.41% at the time of writing. Meanwhile, Ethereum ends at AU$5,015 moving -2.14% week-on-week. On the Altcoin side, Solana +7.40%, Cardano +5.16%, and Pepe -18.41%.

🗞 What’s happening in the news?

Polkadot's Treasury: A Two-Year Runway

Polkadot, one of the pioneering Ethereum rivals, has revealed its latest spending report, showcasing substantial financial movements within its ecosystem. In the first half of 2024 alone, Polkadot spent a staggering US $87 million worth of DOT tokens on various activities.

Of this amount, marketing and outreach initiatives dominated, accounting for over US$36 million. This strategic investment aimed at expanding Polkadot's user base, developers, and business partnerships. Additionally, US$23 million was allocated to software development, enhancing tools and services such as wallets and toolkits for developers.

Despite the aggressive spending, the treasury remains robust with over US$245 million in DOT tokens, expected to last two more years at the current spending rate. However, community members have expressed concerns about the sustainability of these expenditures. 

The volatile nature of the DOT-denominated treasury and its growth through the token's inflationary mechanism add layers of unpredictability. 

As one community member highlighted

"The Treasury has about 32m DOT (200m USD) in liquid assets available within the next year. At a current net loss of 17m DOT (108m USD) per year, this leaves about 2 years of runway left if the DOTUSD rate stays the same."

Ethereum Foundation: Phishing Scam Alert

In a significant security breach, the Ethereum Foundation's email server was hacked on June 23, leading to a phishing scam targeting nearly 36,000 subscribers. The hacker sent out emails purporting to offer a 6.8% yield on staked Ether (stETH), Wrapped Ether (WETH), or Ether deposits through a fake partnership with LidoDAO.

Fortunately, the foundation acted swiftly, blocking further malicious emails and securing the compromised account.

The investigation revealed that no funds were lost during the attack, though 81 email addresses were exposed. The Ethereum Foundation's response included notifying blacklists, Web3 wallet providers, and Cloudflare to protect users. 

As phishing campaigns continue to evolve, staying informed and cautious is crucial for safeguarding assets.

Crypto Hacks See a Decline: A Ray of Hope?

June brought a notable decrease in crypto hacking incidents, with net losses dropping by 54.2% compared to May. According to PeckShield, the crypto space experienced 20 hacking incidents, resulting in approximately US$176 million in losses. This is a significant improvement from May's staggering US$385 million in net losses.

The most significant breach in June involved the BtcTurk crypto exchange, where hackers absconded with over US$100 million in crypto assets. Other notable incidents included a $22 million loss from centralized exchange Lykke and a US$19.4 million exploit on the DeFi lending protocol UwU Lend.

Despite this month's downturn in hacking incidents, the second quarter of 2024 saw a 115% increase in losses compared to the same period in 2023, highlighting ongoing challenges in securing digital assets.

📖 What we’ve been reading

Memecoins Have an Important Role to Play in Crypto

Memecoins have stolen the spotlight this Bitcoin halving cycle, and they’ve offered unparalleled opportunity to some participants. 

Read more ➔

Ethereum Products See Highest Outflows Since 2022

“The ETH products recorded $60 million in net outflows each week, the most since August 2022" 

Read more ➔

DePIN: It's Time for Crypto to Get Real

“DePIN stands for Decentralised Physical Infrastructure Networks, or in simple terms, real-world applications that are actually useful"

Read more ➔

Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.

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