Drift and Kelfdao back-to-back hacks
Bitcoin Dominance hits 60% vs DeFi TVL high
Bitcoin firm amid wobble
In April, large-scale hacking occurred in Drift and Kelp DAO, respectively, leading to a massive outflow of funds from the decentralized finance (DeFi) market.
As a result, the altcoin market was also weak, and Bitcoin Dominance rose to the highest level in about five months since November last year.
According to DeFi Rama on the 21st, the total deposit assets (TVL) of the DeFi market evaporated from $145.6 billion on the 17th (local time) to $130.1 billion on the 20th.
In the short term, the Kelpdao hacking incident, which occurred on the 18th, was largely affected. Abe’s TVL decreased by $9.53 billion during the same period because he took assets by making large loans from Abe (AAVE) with assets stolen by hackers as collateral. Abe is a DeFi protocol that had the largest TVL before the hacking.
Altcoin’s investment sentiment has also worsened significantly due to this effect. This year, the altcoin market has been steadily weak, but it has worsened due to a series of hacking incidents.
According to Trading View, the market capitalization of altcoins excluding Bitcoin and Ethereum decreased by about $37.3 billion (KRW 55 trillion) from $755.5 billion on the 17th to $718.2 billion on the 20th.
Unlike the weak altcoin market, Bitcoin prices remained solid. Due to this influence, Bitcoin Dominance, which represents the proportion of Bitcoin in the market capitalization of the entire digital asset market, again exceeded 60%.
According to TradingView, Bitcoin Dominance rose to 60.11% at one point on the 20th. This is the highest level since the 60.17% recorded on November 14 last year.
The DeFi market has been greatly reduced this year due to the prolonged weak digital asset market and successive hacking incidents.
In October last year, the DeFi market TVL exceeded $260 billion and was called the next generation of finance. Compared to this time, TVL has fallen by half.
Meanwhile, a large-scale outflow of funds worth $286 million (about 430 billion won) occurred at Drift Protocol, a Solana-based decentralized derivatives exchange (DEX) on the 2nd before the Kelpdao hack.
Currently, North Korea has been pointed out as the mastermind behind both hacking incidents.
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