Whales prepare for next altcoin rally, DeFi is ‘awakening’ – Finance Redefined
Welcome to Finance Redefined, your weekly dose of decentralized financial insights – a newsletter designed to bring you the most relevant developments from the past week.
This week's future altcoin demand through “strong buying walls” brought renewed crypto interest with big holders, or whales, positioning themselves for the next potential altcoin rally.
The decentralized finance (DeFi) space is also gaining momentum, as active DeFi loans have grown to more than $13.3 billion, a level not seen since 2022.
“Whales are preparing for the next altcoin rally” – CryptoQuant founder
CryptoQuant founder Ki Young Ju believes cryptowells are positioning themselves in anticipation of the next altcoin rally, with traders fiercely debating when the altseason will begin.
Ju's analysis focused on the one-year cumulative bid/ask spread for altcoins, a metric that measures the difference between buy and sell limit orders over a one-year period.
The analyst suggests that whales choose limit orders to avoid slippage, and the increasing level of the measure will lead to an increase in the number of buy limit orders among large crypto investors and institutions, which will represent “strong buying walls” for future demand for altcoins.
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DeFi is “reviving” – active loans will return to 2022 levels
DeFi may be experiencing a revival in 2023 with key metrics such as active loans and total value locked (TVL) rising from their recent lows.
Crypto market analytics platform Token Terminal announced in a July 31 post on X that “DeFi is reviving.”
He backed up this claim with charts and statistics, including one for active loans, which have returned to levels not seen since early 2022, at around $13.3 billion.
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Morpho has secured $50 million in on-chain funding led by Ribbit Capital
Decentralized financing protocol Morpho Labs has recently raised $50 million in funding following a revamp of its business.
The round was led by Rabbit Capital with participation from a16z Crypto, Coinbase Ventures, Variant, Pantera Capital, Kraken Ventures and other investors. Morpho Labs has previously raised $23.6 million in multiple funding rounds, including an $18 million Series B funding round for a16z and Variant in 2022.
The funds will be used to support the recently launched Morpho Blue, a license-free protocol that allows entities to create and manage their own markets without requiring prior approval from any central authority. In addition, the solution provides a vault that can be adapted to certain risk management parameters.
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Tera chain stopped operations, ASTRO token fell more than 60%
The Terra blockchain has announced that it will temporarily stop at block height 11430400 and user transactions will not be processed during the downtime.
According to Terra's official X post, the team will work with Terra's (Phoenix-1) verifiers to “fix the suspected exploit” after the ban.
According to an X-Post by Cybers Alerts, the exploit led to the theft of approximately 60 million ASTRO tokens, 3.5 million USDC tokens, 500,000 Tether (USDT) tokens, and 2.7 Bitcoin (BTC).
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More than 70% of stolen funds were lost by CeFi legal entities – cybers
Centralized Finance (CeFi) entities are the biggest target of cryptocurrency hackers in 2024.
According to Dedi Lavid, founder and CEO of Web3 security firm Cybers, more than 70% of the money lost in cryptocurrency hacks is stolen from SeFi entities.
The CEO told Cointelegraph that CeFi entities account for about 70% of incidents in terms of lost money and exploits.
“[CeFi] It's about 70% of the scene. Having said that, attacks on smart contract-based projects are on the rise. Today's biggest security vulnerabilities stem from code and personal negligence.
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Overview of the DeFi market
Most of the 100 largest cryptocurrencies by market cap ended the week in the red, according to data from Cointelegraph Markets Pro and TradingView.
Out of the top 100, base-native meme token Brett (BRETT) saw the biggest drop on the weekly chart, over 55%, followed by Solana-based memecoin Dogwifhat (WIF), which fell over 54%.
Thanks for reading this week's roundup of the most impactful DeFi developments. Join us next Friday for more stories, insights and lessons about this dynamic and evolving space.
