This week has been remarkable for the crypto market, as several cryptocurrencies posted significant gains. Ethereum, the world’s second-largest cryptocurrency, has broken above the $2,000 mark, thanks to the successful implementation of the Shanghai upgrade. Meanwhile, Bitcoin (BTC) broke above the $30,000 level, with investors’ confidence bolstered by the bullish trend.
In this weekly recap, we’ll examine the key events that have shaped the crypto market. While several positive developments were recorded, the week also saw an upsurge in fraud and hacking incidents that affected some DeFi projects and crypto exchanges.
Ethereum Surges Above $2,000 on Shanghai Upgrade
The biggest news of the week came from Ethereum, which surged above the $2,000 mark for the first time in 2023. The Ethereum blockchain underwent a major upgrade called the Shanghai hard fork, which was successfully implemented on April 9. The upgrade included several improvements to the Ethereum Virtual Machine (EVM), which is responsible for executing smart contracts on the network. The Shanghai upgrade also reduced gas fees, making transactions on the network cheaper.
Bitcoin Breaks Above $30,000
Bitcoin also enjoyed a bullish trend this week, as it broke above the $30,000 level. This marks a significant milestone for the world’s largest cryptocurrency, which had been struggling to maintain a consistent price trend. The bullish trend was attributed to investors’ renewed confidence in Bitcoin, as well as the general positive sentiment in the crypto market.
Hacks and Fraud Puncture Investor Confidence
Despite the positive developments in the crypto market, the week also witnessed several hacking and fraud incidents that affected some DeFi projects and crypto exchanges. These incidents have caused a dent in investors’ confidence, highlighting the risks associated with investing in cryptocurrencies.
Terraport Finance, a decentralized finance (DeFi) project on the Terra Classic ecosystem, was hacked this week. The project featured a decentralized exchange, which was launched on March 31. The hacker targeted the Terraport liquidity pool, draining over 15 billion Terra Classic (LUNC), 9.7 million TERRA, and an estimated 5.5 million USTC.
GDAC, a crypto exchange in South Korea, was also hacked for around $13 million. The funds, drained from a GDAC hot wallet, represented 23% of the platform’s total holdings. The exchange investigated the incident and reported it to local authorities.
Yearn Finance, a yield farming platform, was targeted in an exploit affecting its yUSDT token. The attacker created up to 1.2 quadrillion yUSDT tokens by exploiting a misconfiguration in the yUSDT’s design. The illegitimately-generated tokens were converted to other stablecoins, causing the protocol to lose $11.5 million.
Bitrue, a crypto exchange, was also hacked this week, losing SHIB, ETH, QNT, GALA, HOT, and MATIC, cumulatively valued at an estimated $23 million. Bitrue launched an investigation into the event, temporarily paused withdrawals, and promised full compensation for affected users.
Conclusion
This week has been a mixed bag for the crypto market, as several cryptocurrencies posted significant gains, while some others were affected by fraud and hacking incidents. Despite the risks associated with investing in cryptocurrencies, investors remain bullish on the future of the crypto market. As the adoption of cryptocurrencies continues to grow globally, it is essential to remain vigilant and cautious while investing in these assets.
