Watch: Massive Solana Hack and Ripple Rise: Crypto Mile Weekly Update
US markets fell after Nancy Pelosi’s visit to Taiwan, but rising tensions with China failed to shake the crypto ecosystem. However, two major hacks have tarnished the reputation of the blockchain-based industry.
On Wednesday, thousands of solana (SOL-USD) wallets ran out of funds in a single day after a “crypto bridge” called Nomad lost about $200 million (£165.3 million) in a hacker attack.
Crypto Miles weekly updates track the price dynamics of three of the top cryptocurrencies: Ethereum (ETH-USD), Solana, and Ripple (XRP-USD).
read more: crypto live price
Ethereum failed to rally last week, falling 0.57% to $1,627 at the time of writing, despite an imminent merger.
Solana is depressed as she suffers reputational damage from the latest hack. SOL is at $39.21 and she’s down 1.8% over the past week.
However, Ripple has had an impressive week, rising almost 5% to $0.37 over the past seven days.
Thousands of Solana wallets hacked
Thousands of crypto wallets on the Solana blockchain were leaked on Wednesday. According to solana’s official Twitter (TWTR) account, “approximately 7,767 wallets are affected.”
The solana team added: “Engineers from multiple ecosystems, with the help of multiple security firms, are investigating solana’s leaked wallet. There is no evidence that the hardware of his wallet was affected.”
Approximately $5 million was exfiltrated from non-custodial wallets Phantom and Thrope digital wallets.
The research seeks to understand how uncustodial wallets can drain funds.
Crypto analysts speculate that this massive hack may indicate an underlying problem with the solana blockchain.
Non-custodial wallets like Phantom and Slope aim to guarantee maximum protection, as only the owner of each wallet has the private key to access the funds.
Nomadic “cross-chain” bridge hack
On Tuesday, a number of hackers drained funds from the Nomad blockchain bridge protocol due to a smart contract bug.
Nomad’s goal was to develop a secure cross-chain protocol.
In just a few hours, blockchain “bridge” applications went from about $200 million to nothing.
Blockchain bridge protocols or cross-chain applications allow users to take digital assets from one blockchain (such as the Ethereum network) and send them to another blockchain (such as the Solana network).
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A hack on Tuesday revealed a critical vulnerability in the so-called blockchain “bridge.”
Over the past year, there have been many successful hacking attempts against blockchain bridges, including the $600 million Poly Network hack, the $320 million Wormhole hack, and the $615 million Ronin Bridge hack.
This year alone, over $1.8 billion in cryptocurrency has been stolen through cross-chain hacks.
Ripple (XRP) price shows strength after gaining 5% in week-long bull market. Digital Remittance Tokens are currently trading at $0.37.
If XRP succeeds in the U.S. Securities and Exchange Commission (SEC) v Ripple ruling, the support Ripple is currently experiencing could grow.
Ripple is fighting the SEC over allegations that it was involved in offering illegal securities through the sale of XRP.
The SEC v. Ripple lawsuit has dragged on since December 2020. Ripple Labs Inc. has won access to SEC documents to defend against a regulatory agency lawsuit accusing it of misleading investors about the XRP cryptocurrency.
The SEC filed a lawsuit against XRP, but claimed privilege to prevent material information from being disclosed in court. This meant that evidence of speeches he gave on cryptocurrencies could not be used for Ripple’s fair notice defense.
Has Ethereum merger enthusiasm run out? The second-largest cryptocurrency by market capitalization plummeted earlier in the week and is now hovering around $1,600 after stalling over the past two days.
The Ethereum “merger” could make 2022 a “success or failure” year for the world’s second-largest cryptocurrency by market capitalization, with certain factors related to the renewal of a blockchain called Ether. native cryptocurrencies become deflationary digital assets.
read more: Ethereum: Two Rays Of Hope For Crypto Investors As The Crash Stabilizes
Miners running the verification nodes of the current “proof of work” mechanism are paid approximately 5% of the total cryptocurrency issuance each year. This has seen the cryptocurrency gain about 4.5% annually.
According to Ethereum’s Dankrad Feist, this will stop after the ‘merger’ and ‘may somehow benefit the value of Ether, making it a good coin to hold’. .
Feist spoke to Yahoo Finance’s The Crypto Mile about the impact the merger will have on Ethereum and the cryptocurrency sector as a whole.