Dear all,
De-Fi tokens experience sharp decline following the Curve Pool exploits. Let us bring you the usual NFT and digital market overviews for the last two weeks of July.
🌐 Two Weeks Market Brief
Bitcoin for the past 2 weeks ending 31st July fell -3.01%, Ethereum -2.88% and the rest of the market -1.70%. Bitcoin and Ethereum continue to see prices fall as the market struggles to find new narratives.
The headline news in the past 2 weeks has got to be the Curve pool attack where several Curve pools were exploited in a reentracy attack. Overall asset outlfows related to this attack have crossed $41M and TVL in the Curve pools have been cut by over 56% (Figure 1). This incident has led to token prices in the De-Fi sector to plummet in the past few days. On the brighter side, Optimism, a layer 2 scaling solution, has gained traction recently with the launch of Worldcoin and Base. However, here too the Base chain suffered a rugpull whereby an anonymous individual launched the $BALD coin and abruptly pulled all the liquidty when prices surged.
Figure1: TVL in De-Fi protocols have fallen sharply in the previous week / Source: Defillama
In the macro world, the risk assets have continued to climb with inflation at the lowest levels since the peak in June 2022. However, we have likely seen the bottom with inflation especially with commodities prices picking up in the past few weeks. Also, the Bank of Japan tweeked its Yield Curve Control policy by letting 10 year bond yields to rise as high as 1%. The hawkish gesture surprisingly saw the dollar go up against other currencies. There seems to be a known mismatch between the level of interest rates and risk asset prices. It’ll be interesting to see how it gets resolved in the coming months.
NFT Market Overview
Volumes in the Ethereum market went lower compared to two weeks ago, currently sitting at 4,653 ETH. There is no big change in the bluechip index from two weeks ago, still remaining at a low point.
Source: nftgo.io
Source: nftgo.io
Here are top 5 collections based on trading volume over the past 7 days: