Hacker Drains $11 Million from Yearn Finance

On February 5, the hacker exploited the decentralized finance protocol Yearn Finance and drained more than $11 million. According to the official Twitter account: “We have noticed the v1 yDAI vault has suffered an exploit. The exploit has been mitigated.”

Based on the report, the hacker who drained crypto-assets has made a profit of almost $2.8 million by carrying out a flash loan from Aave and shaping exchange rates in Curve Finance’s 3pool. 

In today’s disclosure, Yearn Finance added that a $24 million worth of DAI stops in an attempt to prevent further exploit loss. Yearn developer Banteg posted a tweet, “Yearn DAI v1 vault got exploited, the attacker got away with $2.8m, the vault lost $11m. Deposits into strategies disabled for v1 DAI, TUSD, USDC, USDT vaults while we investigate.”

Tether Response to Yearn Finance Exploit

As exploitation news hit the crypto sphere, Tether, the giant US dollar stablecoin firm, has taken precautionary measures to protect stolen crypto assets from withdrawing. The firm has blocked over $1.7 million stolen funds. 

Tether CTO Paolo Ardoin tweeted: 

“Just froze 1.7M USDt stolen as part of the hack of Yearn DAI v1 vault.” By freezing the assets, the thief cannot use those funds elsewhere.”

However, the price of the Yearn Finance token took a sharp downturn after the exploitation. As per CoinMarketCap, it fell to $30,500 from $34,500.

Number of Active Addresses Surge to 22.3 Million Amid Bitcoin Price Rally

The price of Bitcoin, the largest cryptocurrency, surged abruptly to tap a new all-time high. The price rally of Bitcoin came as a surprise for the crypto enthusiasts because it just smashed through the $41,000 barrier on January 8. Since the price of Bitcoin and network activity soared to a new high, over 22.3 million unique addresses actively transferred BTC just in January. 

The recent milestone of Bitcoin was recorded by Glassnode, who added:

“In January, more than 22.3 million unique addresses were active in the network sending or receiving $BTC – the highest monthly number in Bitcoin’s history to date.”

Moreover, Bitcoin trade volumes accelerated at a rapid pace to set record levels last month. Kraken, the giant cryptocurrency exchange, stated it had processed $56 billion worth of assets. Last month’s transactional volume is more than it had processed during all of 2019.

Despite the surging trade volume and unique active wallets, a significant decrease is recorded by the crypto market data aggregator Glassnode in the number of “active entities.” According to Glassnode, an entity is “a cluster of addresses that are controlled by the same network entity.”

Institutional Investors Aggressively Buying Bitcoin

Market indicators and data records from industry insiders indicate that institutional players are actively acquiring cryptocurrencies, most importantly Bitcoin. Business intelligence firm MicroStrategy has aggressively purchased Bitcoin, bringing its total holdings to 71,079. 

Based on the recent announcement, the firm has dropped another $10 million in order to purchase 295 BTC. The company started its Bitcoin campaign by investing almost $250 million in the digital asset in August. As of now, the firm has spent a total of $1.145 billion on acquiring Bitcoin.

Similarly, The US-based cryptocurrency manager Grayscale is aggressively buying Bitcoin. Based on the report, the firm has added almost 40,000 BTC, worth $1.36 billion, so far in 2021. Some analysts believe the growing institutional interest could be the main catalyst behind the Bitcoin bull run.

Uniswap and Compound Rallied to New Highs As DeFi Sphere Heat Up

The entire decentralized finance (DeFi) ecosystem has been accelerating rapidly in the past 30 days. Based on DeFi Pulse data, since the start of 2021, DeFi total value locked has climbed up from $16.43 billion to a new high of $27.67 billion.

According to data from Messari, DeFi and decentralized exchanges are the only two sectors that are performing well in terms of their recent market cap increase. Over the last week, both surge 17.6% and 23.2%, respectively.

The meteoric growth of the DeFi sector started in mid-2020. At the time, users have invested billions of dollars in order to enjoy the benefit from reward incentives and yield farming. Currently, the total market cap of DeFi tokens has surpassed $45 billion, as a whole, according to CoinGecko.

Major DeFi Tokens Smash to New Spikes 

As the entire DeFi sector is fabricating trending growth, Uniswap and Compound both surged exponentially to hit new all-time highs on January 30. According to data from CoinMarketCap, the price of UNI jumped to a high of $20.39, and COMP rallied to $339. 

Market analysis shows that the COMP price rally comes after the launch of the comp vote interface upgrade and a new governance module that empowers users to receive gas fees discount by simply voting instead of on-chain transactions.

Uniswap’s recent milestone follows the launch of the grants program that aims to expand the exchange’s ecosystem. The rising transaction volume, TVL (Total Value Lock), and user interest in the upcoming v3 upgrade are mainly pushing UNI’s bull rallies. Over the past week, UNI’s price has jumped by more than 160% in total, fueling its market cap above $4 billion.

Analysis: Grayscale Absorb $1.36 Billion Worth Of Bitcoin in Just 16 Days

The US-based cryptocurrency manager Grayscale is aggressively acquiring Bitcoin. Based on the report, the firm has added almost 40,000 BTC, worth $1.36 billion, in just the past couple of weeks. 

A recent analysis of Rafael Schultze-Kraft, Glassnode CTO, highlights that Grayscale Bitcoin accumulation is faster than the newly mined BTC. Since the start of 2021, miners have mined only 26,000 BTC, which means Grayscale has been purchasing roughly 170% more assets than was mined into existence.

Grayscale presents investors with a cost-effective means of getting crypto exposure without actually acquiring assets. According to some crypto experts, the Grayscale Bitcoin trust has amassed several funds; if it maintains such buying momentum, Grayscale will have 912,500 BTC by the end of 2021.

Grayscale Plans to Extend its Number of Trusts

The giant crypto manager may be planning to increase the number of Trusts, as per recent market reports. On January 27, Delaware Trust Company, Grayscale statutory trustee, filed six new trusts, including Polkadot, Aave, Monero, Cardano, Cosmos, and EOSIO. 

While commenting on the filing news, Grayscale CEO Michael Sonnenshein said at the time, “Grayscale is always looking for opportunities to offer products that meet investor demands. Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market. Grayscale has and will continue to announce when new products are made available to investors.” 

Grayscale’s total Assets Under Management (AUM) has jumped abruptly to a new all-time high. The firm now claims a total of $24 billion worth of cryptos under management that covers BTC, ETH, and numerous cryptocurrencies, soared more than ten times since the start of 2020. 

Galaxy Digital is Preparing to Introduce Ethereum Funds

Galaxy Digital, the US-based digital asset investment firm, is looking to introduce a new funds vehicle for Ethereum. 

Based on the shared document, the crypto investment firm is launching funds entitled the Galaxy Ethereum fund, with onshore and offshore funds for institutional investors. According to the report, a minimum $250k investment is required for the onshore institutional fund and $100k for the offshore institutional fund. Mike Novogratz, CEO of Galaxy Digital, believes the growing institutional interest is the main catalyst behind the recent bull run.

These new vehicles offer a cost-effective means of ETH exposure to investors. This strategy withdraws the challenges of buying, storing, and safekeeping digital assets directly. The document reads, “Galaxy Digital believes Ethereum is an emerging substrate for programming and interacting with the digital value that will become ubiquitous in the future.”

Galaxy Digital Assets Under Management Surge

Galaxy Digital has $815 million under management, highlighted in the report. Meanwhile, Grayscale’s total assets under management (AUM) has surged abruptly to hit a new all-time high. The firm now claims $27 billion worth of cryptos under management. Over the past year, it has amassed a large number of Bitcoin, Ethereum, Stellar, and other crypto assets.

Recently, Galaxy Digital has started new financial services and sophisticated tools for the bitcoin mining sector. The firm’s new platform, entitled Galaxy Digital Mining, intends to give “one-stop financial services” for crypto miners.

Binance Domain is no Longer Prohibited Website After the Russian Court Order

Binance daily trade volume has surged abruptly to smash a new high of more than $80 billion, according to January 4 report. Exchange’s spot volume topped $23.6 billion, while its derivatives trade drew almost $57 billion.

On Twitter, CEO of Binance Changpeng Zhao compared the recent achievement to the previous record-breaking activities: 

“To put this in perspective, from Nov 15, 2017, to Dec 15, 2017, the month leading up to the ATH in 2017, @Binance did $20 billion in trading volume in 1 month. And we were the largest with those volumes back then.

— CZ Binance (@cz_binance) January 4, 2021.”

Binance Russia Trading Remain Unaffected

Binance had faced regulatory restrictions in Russia as its website came on the list of prohibited websites in September 2020. However, the site of the leading exchange is no longer blacklisted, as per a new ruling of the Russian court.

According to the Kommersant report, the latest court decision returns an earlier ruling made in 2020. Binance Russian telegram channel mentioned that Roskomnadzor, the telecom regulator based in Russia, had blacklisted the exchange site to the register of platform disseminating prohibited information. Binance faced restrictions due to the distribution of information related to the crypto acquisition, as disclosed in the September announcement. 

Despite being placed on the blacklist, Russians can still reach the Binance domain without utilizing any added services. However, Binance URL is available on Roskomnadzor official register of blacklisted sites.

Operation head of Binance in Russia Glob Kostarev said, “though the September ban had no impact on our volumes in Russia, for us it was important to protect our reputation and appeal in this case,” he added, “after getting a document we will send a notification to remove us from the list.”

Grayscale Raised its Bitcoin Holdings to $24 Billion After Recent Acquisition

Digital assets management giant Grayscale has added 16,244 Bitcoin, worth more than $600 million, to its Bitcoin Trust, based on CryptoQuant data. Michael Sonnehnshein, the newly appointed CEO, has announced that the firm gathered $700 million on January 15.

“Grayscale raised north of $700 million into its family of products…momentum from Q4 seems to pick up speed into the new year.”

Grayscale offers a cost-effective means of getting crypto exposure without actually acquiring the asset. This strategy withdraws the challenges of buying, storing, and safekeeping digital assets directly. According to market reports, Grayscale’s Bitcoin trust has amassed a large number of funds, maintaining more than 632,000 BTC, which draws more than 70% of the total BTC possessed by publicly traded firms.

JPMorgan Strategists Stated Grayscale Could Influence Bitcoin Price Rallies

Analysts at JPMorgan Chase believe that the Grayscale Bitcoin Trust might be the main catalyst behind the short term price rally of Bitcoin. The analysts said, “the flow into the Grayscale Bitcoin Trust would likely need to sustain its US$100 million per day pace over the coming days and weeks for such a breakout to occur.” 

If Bitcoin collapses below the $40,000 mark, traders “could propagate the past week’s correction,” and “momentum signals will naturally decay from here up till the end of March,” experts added.

Bitcoin’s price has surged abruptly after smashing the $20,000 barrier. According to data from CoinMarketCap, it is currently trading at $37,450.

In Wake of Bullish Phase, Bitcoin Mining Revenue Surge to $20 Billion

The total revenue of Bitcoin miners soars abruptly to hit $20 billion, according to data from Glassnode. Bitcoin miners earn BTC as a reward for completing “blocks” of verified transactions which are added to the blockchain, validating transactions by solving a complex computational puzzle. 

 

Network activities are directly connected with the gas price. High transaction gas reflects network congestion. Miners prioritize the users who are willing to pay a premium in order to process Bitcoin transactions.

Miners revenue has seen a massive surge during the recent bull run. Bitcoin price has accelerated at a rapid pace, starting from $10,500, on October 1st, to highs of more than $40,000 this month. 

Galaxy Digital Getting into the Mining Sector

Galaxy Digital, a diversified financial services firm dedicated to cryptocurrencies, has stated that it is starting new financial services and sophisticated tools for the bitcoin mining sector. 

The firm’s new platform, entitled Galaxy Digital Mining, intends to give “one-stop financial services” for crypto miners, based on the official statement. Amanda Fabiano, former Fidelity’s mining director, is managing the mining operations. “Bitcoin mining is the foundation of the Bitcoin network. By mining ourselves, we are able to deeply understand and solve for the financial needs of miners, while also enhancing the strength of the industry and thus the strength of the Bitcoin network,” Fabiano passed the statement.

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