Ethereum Reserves Hit 8-Year Low
zkSync Announces ZK Airdrop - Biggest Ever L2 Token Distribution, UwU Lend Lost $19.3M To Hack
The number of Ethereum tokens held in exchange reserves has plunged to an 8-year low, according to CryptoQuant, which caused speculation on whether this is bullish or bearish.
This follows a surge in Ethereum staked in Eth2, the upcoming London hard fork, and the nearing Ethereum ETF launch for trading.
The Eth2 staking contract has surpassed 6 million Ethereum at the end of last month, and on July 1st, 596k ETH was pulled from exchanges - the biggest single-day outflow since January.
A growing total value locked (TVL) in DeFi protocols suggests that staking and other DeFi services could be more attractive than in-exchange trading.
The London hard fork, part of the EIP-1559 proposal, is also highly impactful in traders and developers' decision-making.
Some outlets suggest a "price explosion" is close due to supply shock caused by the low reserves.
It's also been reported that 89% of ETH holders are in profit, and that 51% of ETH is held by whales.
Market Update
News
zkSync Announces Major Airdrop of 3.6 Billion ZK Tokens
zkSync, an Ethereum Layer-2 network, has announced a significant airdrop event scheduled for June 17. This event will see the distribution of 3.6 billion ZK tokens, which is 17.5% of the total supply, to 695,232 eligible wallets. This marks a major milestone in zkSync's growth, and the largest distribution of tokens to L2 users ever. | Read More
UwU Lend Loses $19.3M in Major DeFi Exploit
UwU Lend, a decentralized finance protocol, has recently fallen victim to a significant exploit, resulting in a loss of approximately $19.3 million. The exploit involved a single wallet that managed to siphon off various tokens, including wrapped ether (WETH), wrapped bitcoin (WBTC), and stablecoins. These tokens were then traded on Uniswap, a decentralized exchange. | Read More
SEC Begins Review of ProShares' Ether ETF Application
The SEC has started the review process for ProShares' application to launch a spot Ethereum ETF. As part of the review, the public has a 21-day window to submit comments on the proposal. The SEC is expected to make a decision by late July 2024. This review follows the SEC's approval of other issuers' filings in May 2024, indicating a trend towards regulatory acceptance of cryptocurrency ETFs. | Read More
Solana Foundation Expels Validators for 'Sandwich' Attacks
Sandwich attacks are a form of front-running exploit. In these attacks, an attacker places two transactions around a victim's transaction. Validators found to be engaging in sandwich attacks will be permanently banned from receiving delegated stakes from the foundation. This move is aimed at protecting retail users from exploitation and maintaining high ethical standards within the network. | Read More
Ethereum Sees Highest Net Inflow in 3 Months with 267,000 ETH
Large Ethereum holders have recorded a significant net inflow of 267,000 ETH, marking the highest daily accumulation since March. This event underscores sustained interest and activity among major ETH investors, even amid the crypto market's fluctuations. There has also been a notable increase in the creation of new Ethereum wallets. | Read More