• Bitcoin continues to consolidate in its $22,000 to $24,000 channel after recording a weekly high of $24,670. Bitcoin’s rolling 7-day correlation to the S&P500 has plummeted to -0.32 which is indicative of crypto decoupling from traditional risk assets.
  • Nomad Bridge was compromised on August 1 as attackers drained nearly $190M. According to Paradigm, the attackers identified a misconfiguration of the project’s smart contract which allowed users to withdraw funds themselves.
  • Ethereum developers revealed that the Goerlia/Prater testnet merge is scheduled for early August, the last testnet proof-of-stake transition prior to the Merge. Check out the implications of the upcoming Merge which will transform Ethereum into a proof-of-stake blockchain.
  • According to data from glassnode, on-chain activity continues to surge as Ethereum daily active addresses recorded a new all-time high at nearly 1.1M users, and Bitcoin mining difficulty dropped by 12% (see quantitative section).
  • Over 7,000 Solana hot wallets were compromised on Tuesday evening for $8M. On-chain data revealed that the hacker targeted wallets with Solana and USDC tokens that had been inactive for less than 6 months.
  • Coinbase Prime introduced Ethereum staking for its US institutional clients ahead of the Merge. The product seeks to ramp institutional adoption amid a growing interest for the smart-contract native blockchain.
  • Troubled crypto lender Babel Finance revealed that it lost $290M (8,000 BTC and 56,000 ETH) in proprietary trading with customer funds. The lender will seek to convert hundreds of millions of dollars of debt into equity to raise funds.