Hyperliquid has introduced its native token, HYPE, as part of its upcoming HyperEVM mainnet launch.
Eligible users can claim HYPE and a commemorative Hypurr non-fungible token during the Genesis Event by accepting the terms before Nov. 11. The Hyper Foundation, recently established to support Hyperliquid’s ecosystem, confirmed this development.
Hyperliquid is a decentralized exchange offering deep liquidity for a variety of assets. Liquidity refers to how easily assets can be traded without affecting prices.
The Hyper Foundation has been established to support the growth of the Hyperliquid blockchain and ecosystem. Today, the flagship application on Hyperliquid is the premier decentralised exchange, part of the foundation for a new financial system. Hyperliquid’s order books already… pic.twitter.com/EF6AdfI1Qz
The Hyper Foundation, established to support the growth of the Hyperliquid ecosystem, focuses on building a decentralized financial infrastructure, including the development of Hyperliquid’s blockchain and applications.
The HyperEVM, an Ethereum (ETH) compatible blockchain, will allow any application built on Hyperliquid to leverage this liquidity and financial tools, making decentralized finance more accessible.
The launch of HYPE is also crucial for the network’s proof-of-stake consensus mechanism, which requires users to hold tokens to validate transactions and secure the network.
Celestia could face potential selling pressure by the end of October due to its major token unlock event, Illia Otychenko, Lead Analyst at CEX.IO, told crypto.news.
On Oct. 30, 175 million Celestia (TIA) tokens, accounting for 16.4% of its total supply, will enter its circulating supply as the modular blockchain becomes one-year-old. These coins are valued at roughly $1 billion at current price levels.
Otychenko pointed out three key points that could trigger bearish momentum for the TIA price in the upcoming token unlock event:
Early unlock: The network launched just a year ago, and this is its first major unlock since the initial launch. Additionally, the Oct. 30 release marks the beginning of subsequent monthly unlocks. Historically, tokens that have distributed less than 70% of their total supply tend to have larger volatility during their unlocking events, according to the 6MV report.
Large unlock: TIA is set to nearly double its circulating supply in a single event as its circulating supply will increase by 82% — far beyond the 1% threshold where negative price impact typically begins to emerge.
Profit-taking opportunity: Approximately 67% of tokens within the upcoming unlock will go to seed and series A and B investors, who are currently sitting on 59,400% and 1,800% profits, respectively.
The CEX.IO lead analyst says that “with TIA underperforming in 2024,” down by 70% from its all-time high of $20.9 in February, “these early investors might be inclined to sell.”
According to Otychenko’s analysis, the activity on the Celestia network has significantly increased this year while its fees have declined. This shows reduced revenue and short-term pressure on the TIA token, but for the long term, “this dynamic can be a positive signal.”
Moreover, the analyst explains that TIA could face a short squeeze due to the massive token unlock event and potential profit-taking from early investors.
“If Celestia does not see a surge in positive activity after the token unlock, or if a broader altcoin rally does not materialize to support the asset, the TIA token could face a price decline exceeding 20% following the release.”
Otychenko told crypto.news.
On Sept. 23, the Celestia Foundation announced a $100 million funding round, led by Bain Capital Crypto. This helped the TIA price surge 14% in less than 24 hours as the positive sentiment surrounding the asset significantly increased.
TIA is up by 3.4% in the past 24 hours and is trading at $6.12 at the time of writing. Its market cap is currently sitting at $1.33 billion with a daily trading volume of $227 million.
Kavita Gupta, founder of a blockchain venture fund, raised concerns in a recent op-ed about the sustainability of the current crypto market, suggesting it’s driven by an “artificial boom” fueled by venture capital spending rather than genuine user interest.
Writing about her experience at the recent Token2049 conference in Singapore, Gupta observed a pattern of excessive spending by crypto projects, with lavish parties, high-end DJs, and extravagant marketing events.
In her Fortune article, Gupta wrote that, unlike the last bull cycle in 2021, when retail investors and actual capital flow drove interest, the current cycle seems primarily propped up by VC money.
“The money is coming from VCs, who are pumping funding into new layer-1 and layer-2 blockchains that have yet to even launch a testnet but are still raising at billion-plus dollar valuations,” Gupta wrote.
According to Gupta, the money is being spent on marketing and events rather than building a sustainable product or community.
“And clearly, a large portion of that funding is going to so-called “marketing expenses,” which are really just giant parties,” Gupta wrote.
For those unfamiliar with crypto, layer-1 and layer-2 refer to different ways blockchain projects handle transactions. Layer-1 blockchains are the base networks, like Bitcoin (BTC) or Ethereum (ETH), while layer-2 solutions build on top of these to improve speed and reduce costs.
Gupta’s concern is that VCs are investing heavily in projects that have yet to prove their value or utility.
Token valuations
Gupta also warned about the impact of these practices on token valuations. Most crypto projects raise funds by issuing tokens, which represent a share in their ecosystem.
My first oped @FortuneMagazine As a crypto VC for 8 yrs, this SG trip made me introspect on who is footing the bills for crazy parties and supporting mutilbillion $ val for pre testnet product? exchanges and multibillion $ token launches with no liquidity and massive fdv hit have…
However, when projects prioritize hype and parties over genuine use cases, it leads to inflated valuations that can’t be sustained. This can result in sharp declines in token prices, as seen with recent high-profile projects like Wormhole and Celestia (TIA).
Gupta is an investor and entrepreneur in the blockchain and crypto space. She co-founded and served as the managing partner of ConsenSys Ventures, a $50 million blockchain venture fund.
Restaking protocol EigenLayer’s native token EIGEN has officially been launched and is currently trading at $4.10 per token.
On Oct. 1 at 05:00 UTC, EigenLayer‘s token EIGEN was listed on several major exchanges including Binance and MEXC. The token is now transferrable and trading at a fully diluted value reaching over $6.5 billion.
According to data on Coinmarketcap, EIGEN’s price is currently up 10% at $4.10. Around 1.68 billion tokens have entered the market including 86 million tokens that were airdropped to users that interacted with the protocol earlier this year.
One trader on X deposited al total of 5.24 million EIGEN tokens, or approximately $21.5 million USD using five addresses since the token has gone live.
Justin Sun (@justinsuntron) deposited all 5.24M $EIGEN ($21.5M) to #HTX in the past 20 minutes after the token was listed on major exchanges today!
Notably, these tokens were claimed from @eigenlayer via 5 addresses in the past 24 hours!
According to EigenLayer’s X post, developers can also build Actively Validated Services using EIGEN staking.
“Stakers play a direct role in securing these services and diversifying use cases, while partners integrate EigenLayer’s security to enhance their protocols,” stated the account @eigenfoundation. The protocol also plans to introduce a programmatic incentives reward for stakers and operators supporting AVSs.
The EIGEN token was described as a “universal intersubjective work token” on the protocol’s website.
According to the blog post, the aim of the token is to solve challenges of “universality, isolation, metering and compensation”. It will also use social consensus and forking to execute a variety of digital tasks.
The protocol is built on Ethereum and accepts ETH deposits, providing users the ability to secure additional networks in return for additional yield.
In recent years, EigenLayer has become one of the biggest players in the crypto industry that offer staking solutions. According to data on DeFi Llama, Eigenlayer has become the third-biggest player in the DeFi industry with over $10.9 billion in total value locked.
The protocol employs staking technology that lets Ethereum stakers reuse their tokens on other protocols. In addition from EigenLayer, other popular liquid staking solutions in the crypto industry include Symbiotic, Puffer Finance, and Lido.
Coinbase is rolling out cbBTC — Coinbase Wrapped BTC — an ERC20 token backed 1:1 by Bitcoin, which Coinbase holds.
According to a press release shared with crypto.news, the cbBTC token is now available on Base and Ethereum (ETH).
Wrapped Bitcoin is a tokenized version of Bitcoin (BTC) that runs on Ethereum or other blockchains, giving BTC holders access to DeFi applications. Coinbase’s cbBTC is the latest addition to the wrapped asset category, following the likes of WBTC (WBTC).
In August, Coinbase posted a cryptic tweet about a new wrapped Bitcoin product. The news was announced on Coinbase’s official X account with a simple “cbBTC” followed by a “coming soon” comment.
Then, on Sept. 11, the Base X account tweeted a logo that was assumed to be the logo for the cbBTC.
Coinbase users can now convert their Bitcoin to cbBTC when transferring from their accounts to Base or Ethereum addresses. This token can be used in popular DeFi protocols like Aave (AAVE), Compound (COMP), and MakerDAO, allowing users to lend, borrow, and earn yields with their Bitcoin.
CbBTC also ensures secure liquidity by being fully backed by Bitcoin held in Coinbase custody, which has a track record of over 10 years. This move aims to provide more utility for Bitcoin holders, allowing them to access decentralized finance applications using the Bitcoin they already own.
How cbBTC works
When sending BTC from Coinbase to an address on Base or Ethereum, it will be automatically converted 1:1 to cbBTC. When receiving cbBTC in the Coinbase account, it will be converted 1:1 from cbBTC to BTC.
CbBTC will not have a separate order book or trading pair on Coinbase. However, it will be available to trade on DEXs using Coinbase Wallet and may be listed on other third-party exchanges that choose to support it.
At launch, cbBTC send and receive will be available on Coinbase in the U.S. (excluding New York State), the UK, EEA states, Singapore, Australia, and Brazil. It will also be accessible globally on Base and Ethereum.
IOTA price rose on Tuesday, joining other cryptocurrencies that bounced back after falling sharply on Monday.
The IOTA (IOTA) token rose to an intraday high of $0.1290, 25% higher than this week’s low of $0.1028.
Cryptocurrencies have recovered
Its rebound mirrored that of other cryptocurrencies that bounced back on Monday. Bitcoin (BTC), which traded as low as $49,000 on Monday, Aug. 5 rose to $56,000 while Ethereum (ETH) spiked from $2,118 to over $2,500.
The recovery was also in line with the happenings in the stock market as Japan’s Nikkei 225 index rose by 10%. In the US, futures tied to the Dow Jones, Nasdaq 100, and S&P 500 indices rose by over 80 basis points.
These assets rose as investors started preparing for Federal Reserve interest rate cuts. Analysts at UBS, ING, and other banks like Jefferies and Goldman Sachs have noted that the Fed will start cutting rates soon.
Still, there is a risk that the ongoing recovery is part of a dead cat bounce, a situation where a falling asset has a temporary rebound.
IOTA becomes Sharia-compliant
IOTA token also rose after receiving a Sharia compliance certificate from the Cambridge Institute of Islamic Finance. It has become the first company in the distributed ledger technology industry to receive the certification.
IOTA hopes that this certification will make it more attractive to Muslims from around the world. It also believes that the network will be selected by companies seeking to launch their decentralized applications. For example, IOTA’s technology could be used in projects like halal meat verification.
The certification came a few months after IOTA Foundation became the first to be regulated by the Abu Dhabi Global Markets.
The Middle East region is growing at a rapid pace as countries continue attracting foreign investments. In a recent report, CNBC noted that over 6,700 millionaires will move to the region this year. Most of these people are coming from countries like Russia and China.
These people are favoring Abu Dhabi and other Middle East countries because of their lower taxes and privacy factors.
IOTA token remains below key support levels despite the recent rebound. It sits below the key support level at $0.1341, its lowest swing in August last year.
It also remains below the 50-day Exponential Moving Average, meaning that bears are still in control. Therefore, the token could resume the downward trend as sellers target this week’s low at $0.103.
On the positive side, IOTA price has formed a hammer candlestick pattern, which is a popular reversal sign.
Altcoins face an early crypto winter, mainly due to the large token unlocks in 2024.
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According to Bloomberg, early project investors seek to sell the received tokens quickly, wanting to lock in short-term profits. At the same time, they do not want to keep unlocked altcoins on their balance sheets, with an eye to future growth.
Data from the Token Unlocks platform, which tracks 138 projects, indicates that 120 are expected to unlock tokens in 2024. Analysts estimate the total market value of this volume of assets to be $58 billion.
Edward Chin, co-founder of the investment company Parataxis Capital, believes that massive sales of such assets are putting intense pressure on the altcoin market. At the same time, brokers often need to offer potential buyers tokens from early investors at a discount of up to 40%.
“The market is strange at the moment, in that the many infrastructure projects that investors funded over the bear market are now coming to their token launch, but there is not a ton of regular buyers of these tokens at high prices.”
Lex Sokolin, Generative Ventures co-founder
How does unlocking affect tokens?
The timing and scale of token unlocking can significantly impact market dynamics. Unlocking many tokens simultaneously can reduce interest in purchasing and temporarily drop token prices.
Token unlocking events can cause market fluctuations as investors react to the new supply of tokens. Investors may adjust their positions based on the unlock schedule and the expected impact on token prices, resulting in price changes.
Which tokens collapsed after unlocking?
For example, the token of the dYdX project, DYDX, has dropped by 61% over the past three months. At the time of writing, the asset price is $1.4, and its market capitalization is $838 million.
Source: CoinMarketCap
A similar situation is observed in the Pyth Network (PYTH) and Avalanche (AVAX) projects. Over the same period, their tokens fell by 55% and 66%, respectively.
All three listed projects were unlocked in May 2024. The general market volatility aggravates the situation with altcoins. Of the more than 90 most considerable crypto assets by market capitalization, only 12 have shown positive returns since mid-March 2024.
According to statistics, about 80 projects show negative dynamics in this indicator. At the same time, the price of 23 assets fell by more than 50%.
Crypto winter on the altcoin market
10xResearch analysts note that the 115 most prominent altcoins have fallen in price by more than 50% since their 2024 peaks. This correction is mainly similar to the declines seen in previous market cycles in 2017 and 2021. Without an influx of new funds and restoration of liquidity, the fall in altcoin prices may continue.
“Today, altcoins are in a brutal bear market. In 2024, 73% of those 115 coins peaked in March. We have been correct in calling for Bitcoin’s outperformance against everything else, notably Ethereum, but in early March, the game changed.”
10xResearch
While altcoins are falling, the two flagship cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have shown relative resilience. They are down 11% and 13%, respectively, from their peaks this year.
“Surviving the altcoin bear market hinges on one crucial factor: effective risk management. Token unlocks, and unfavorable crypto liquidity indicators are the primary catalysts of this altcoin crash.”
10xResearch
In May, analysts warned about a potential decline in altcoin prices due to unlocking a significant volume of tokens. Almost $2 billion in unlocked tokens is expected to enter the market before July, which could lead to a sell-off of cryptocurrencies and a drop in prices.
According to experts, this situation is due to the actions of venture capital funds. In the first quarter of 2022, these funds invested $13 billion in altcoins. Under pressure from investors wanting to return their funds, venture funds are forced to sell their tokens. The situation is aggravated by investors’ growing interest in artificial intelligence (AI).
Should traders wait for the altcoin season?
The share of Bitcoin in the total capitalization of the entire crypto market, whose volume is $2.4 trillion, is at 54.6%. The so-called Bitcoin Dominance Index indicates the market cycle and investor sentiment, with smaller cryptocurrencies typically outperforming Bitcoin and Ethereum in growth rates.
Source: TradingView
As a rule, the share of the leading digital currency in the total capitalization of the entire crypto market grows during cyclical downturns in the industry. During a bull period in the market, when many altcoins grow faster than Bitcoin, it decreases. Thus, the first cryptocurrency dominance index indicates the market cycle and investor sentiment.
Swissblock analysts called the conditions for starting the altcoin season. Experts believe that traders need to monitor the ETH/BTC price ratio, which is the price of Ethereum in Bitcoin equivalent. The growth of the ETH/BTC pair is traditionally considered a harbinger of an influx of capital into alternative
Additionally, Technical Analyst Titan of Crypto also expressed faith in the upcoming altseason in April.
$Alt-Coin Market Cap ($TOTAL3) positioned for a massive bull run.
According to him, the altcoin market is ready for significant growth. Analyst emphasized that the phase after the BTC halving usually becomes a turning point for them. Technical charts suggest altcoins will soon take center stage, foreshadowing a potentially lucrative altseason.
ZKsync, the Ethereum-based layer-2 blockchain platform, has witnessed a significant 21% drop in its token value following the recent airdrop, as selling pressure mounts.
The much-anticipated distribution of “ZK” tokens initially placed the market capitalization of the asset near an impressive 0 million, per market data. However, the excitement was short-lived as the token’s value has plummeted by 21% since then and 26% from its peak of .3098.
ZK price as of Jun. 18 | Source: Santiment
Notably, the ZKsync team executed the token airdrop on Jun. 17 following the initial controversy, with Binance immediately announcing the token’s listing, a move that provided a venue with ample liquidity for trading activity.
ZKsync is down by 21.76% in the past 24 hours and is trading at .2245 at the time of writing. Trade volume has spiked 1,970% to .3 billion in the last 24 hours, reflecting surging trading activity. The token’s market cap currently sits at 1 million.
The decline in value is attributed to the immediate sell-off by airdrop recipients, reflecting a common trend observed in the crypto market where beneficiaries rush to liquidate their holdings for quick gains. This rush to sell, especially with sufficient liquidity on platforms like Binance, has exerted considerable downward pressure on the token’s price.
This pattern was observed with Notcoin (NOT) following its airdrop last month. Notably, NOT collapsed by nearly 40% a week after its airdrop due to a surge in selling pressure. Interestingly, the token has recovered from this drop, now up 134% over the past month.
However, there is no guarantee that ZKsync would follow a similar trajectory. Despite technical issues and backlash regarding its token distribution strategy, nearly half of the ZK tokens were claimed shortly after the airdrop commenced.
The platform’s technical challenges and concerns over Sybil attacks — where one user creates multiple accounts to receive more tokens — cast shadows over the event.
The initial response from the crypto community was one of enthusiasm, with pre-market pricing on perpetual exchange Aevo valuing ZK at .67 at some point, which would place the airdrop’s fully diluted value (FDV) above .41 billion. However, this sentiment quickly shifted as selling pressure took hold.
Để tránh các cuộc tấn công phối hợp trong tương lai với các chiến thuật tương tự, dYdX cho biết họ đã cải thiện nền tảng giao dịch v3 để tăng cường giám sát và cảnh báo lãi suất mở.
Sàn giao dịch phi tập trung dYdX cho biết họ đã phát hiện ra danh tính của kẻ tấn công chịu trách nhiệm về vụ tấn công nền tảng v3 của sàn giao dịch vào ngày 17 tháng 11 năm 2023, dẫn đến khoản lỗ 9 triệu USD từ quỹ bảo hiểm của sàn.
Khi khám nghiệm tử thi về “cuộc tấn công có chủ đích” trên sàn giao dịch, dYdX xác nhận rằng họ hiện đang xem xét hành động pháp lý chống lại người chịu trách nhiệm.
Để tránh các cuộc tấn công phối hợp trong tương lai với các chiến thuật tương tự, dYdX cho biết họ đã cải thiện nền tảng giao dịch v3 để tăng cường giám sát và cảnh báo lãi suất mở.
Sàn giao dịch nói thêm rằng chuỗi v4 nâng cao được xây dựng đặc biệt để giảm thiểu những rủi ro như thế này. Nó bao gồm một tính năng mới tự động điều chỉnh tỷ lệ ký quỹ ban đầu để đáp ứng với những thay đổi giá bất thường.
1/ Sau khi xem xét sự cố YFI trên dYdX v3, chúng tôi đã truy tìm thành công cá nhân chịu trách nhiệm và báo cáo cho cơ quan thực thi pháp luật.
Khi kiểm tra phương thức tấn công, dYdX quan sát thấy kẻ tấn công đã bắt đầu nhiều vị thế mua có đòn bẩy 5x bằng cách sử dụng cặp giao dịch YFI/USD trên hơn 100 ví. Bằng cách sử dụng nhiều địa chỉ khác nhau, kẻ tấn công đã mua token Yearn.finance ( YFI ) giao ngay, khiến giá của nó tăng 215%.
YFI là mã thông báo gốc của giao thức tài chính phi tập trung Yearn.finance.
Theo sàn giao dịch, kẻ tấn công đã nhân số lợi nhuận chưa thực hiện của chúng bằng cách nhập thêm các vị thế YFI/USD, đạt tối đa khoảng 50 triệu USD. Vào ngày 17 tháng 11, nền tảng này đã nâng yêu cầu ký quỹ ban đầu và hạ thấp kích thước vị thế cơ sở và gia tăng trên thị trường YFI/USD để hạn chế hoạt động của kẻ tấn công.
Ngày hôm sau, giá YFI giảm gần 30% trong vòng một giờ và kẻ tấn công không thể đóng vị thế của mình. Theo dYdX, quỹ bảo hiểm sẽ tự động bù đắp tổn thất của họ khi số tiền nắm giữ của kẻ tấn công chuyển sang âm.
Nền tảng này cũng đề cập rằng một tuần trước khi xảy ra sự cố YFI, kẻ tấn công đã sử dụng chiến lược tương tự trên SUSHI/USD, kiếm được khoảng 5 triệu USD lợi nhuận. Tuy nhiên, điều này không ảnh hưởng đến quỹ bảo hiểm v3 vì dYdX đã tăng yêu cầu ký quỹ ban đầu lên 100%, ngăn cản kẻ tấn công kiếm thêm tiền.
Công ty làm rõ rằng các cuộc tấn công không ảnh hưởng đến tiền của khách hàng và chỉ ra rằng kẻ tấn công không được hưởng lợi từ việc thao túng thị trường YFI của họ.
