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Bullish Insights Weekly Market Recap

Oct 13, 2023 3 min read

The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of October 9, 2023.

Bullish exchange

This week’s peak exchange trade volume (24h): $566,244,140 (20,149 BTC) on October 10, 2023.

This week’s headlines

  • In late September, the rebranded Huobi global exchange, HTX, suffered an attack resulting in a loss of approximately $7.9 million (4,997 ETH) from its hot wallet. In a recent development, all stolen funds from the HTX exchange were returned to the exchange's hot wallet. The full amount was returned by the hacker, after which HTX sent the promised bounty back.
  • Over the weekend, concerns have arisen about potential illicit funds transactions through THORChain and specifically, THORSwap. In response, THORSwap, has temporarily transitioned into maintenance mode where all swaps have been paused but LP actions, earn, borrow, and staking actions are still in operation.
  • Upbit experienced over 159,000 hacking attempts in the first half of 2023, marking a 117% increase from 2022 and a staggering 1,800% increase from 2020, according to Dunamu, the firm operating Upbit. To increase security, Upbit has increased the proportion of funds held in cold wallets to 70% and enhanced security measures for funds in hot wallets.
  • The Ethereum Foundation executed its largest transaction of the year, selling 1,700 Ether via Uniswap for $2.73 million in USDC. This sale contributed to the 2,262 Ether sold by the organization in total this year, primarily preceding cryptocurrency market dips. The Ethereum Foundation still holds over $500 million in Ether and a substantial amount in other altcoins in its wallet.
  • The Web3 Foundation plans to allocate millions in grants to bootstrap development within the Polkadot ecosystem. The initiative, aiming to deploy around $22.1 million and 5 million DOT tokens in 2024, is designed to bolster the community-driven growth and funding of projects in the Polkadot network.
  • SocialFi protocol Stars Arena built on the AVAX network have recovered 90% of lost funds after the hacker keeps 10% (27,610 AVAX) as a bounty fee.
  • JPMorgan unveiled its tokenization application, the Tokenized Collateral Network (TCN), on October 11, according to Bloomberg, successfully settling its first transaction with asset management firm BlackRock. The TCN is designed to allow investors to use assets as collateral, transferring ownership without altering underlying ledgers.
  • Platypus Finance, a DeFi protocol on the Avalanche network, was compromised by a security breach, resulting in an estimated $2 million loss, as reported by the security firm PeckShield. In response to this incident, Platypus has temporarily suspended all its liquidity pools to prevent further losses. It is suspected that this was a flash loan attack, particularly targeting the AVAX-sAVAX liquidity pool.

Equity markets

  • US equity markets closed the week on a higher note in Friday’s session after U.S. employers added 336,000 jobs in September, bringing the figure to its highest tally since January.
  • US equity markets closed in the green for the third consecutive session on Tuesday with 10-year yields seeing a sharp drop.
  • US equity markets saw its fourth consecutive trading session in the green as bond yields pulled back, reversing the run up in yields that weighed on equities. The S&P 500 gained 0.4%. The tech-heavy Nasdaq Composite rose 0.7%, and the Dow Jones Industrial climbed by 0.2%.

Crypto market highlights

  • CVI the Crypto Volatility Index is still wavering at 40. Volatility in the market has been exhibiting a sustained downward trend below 50 since the end of July.
  • Crypto VC’s appear to be badly hit in this bear market as their dollar value of deals invested as well as deal count has fallen to its lowest levels since 2020, Q4. Last quarter only 376 deals were made at less than $2bn invested compared to 1,300 deals and $11.8bn invested in 2022, Q2.
  • The Long-Term Holder Supply continues to set new records, now exceeding 14.859M BTC. This accounts for 76.1% of the total circulating supply, which has remained dormant for the previous five months.

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