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- The DNS Reality Check: Is Crypto Just LARPing as Decentralized?
The DNS Reality Check: Is Crypto Just LARPing as Decentralized?
Welcome to another eventful week in crypto!
Welcome to another eventful week in crypto!
Tl;Dr
Crypto institutional interest is high.
Bitcoin and Ethereum remain resilient
Multiple crypto websites could suffer DNS attacks.
The “Fear & Greed” is stuck at “Neutral” as the buyers fight back and regain some ground
So, what’s going on here?
Let’s take a look.
Market Movements
Bitcoin
Ethereum
Cardano
Bitcoin (BTC)
Bitcoin was riding that downward wave, flipping the 20-day, 50-day, and 200-day SMAs from support to resistance. But hey, it’s found some footing at the $56,000 line and has since jumped up.
According to IntoTheBlock, the $56,000 support line is solid. Previously, 725.58k addresses scooped up 473.6k BTC here.
The BTC price has crossed $60,000 and broken above the downward channel. Can we overcome the 50-day SMA? The Parabollic SAR just flipped from bearish to bullish, hinting that buyers might be gaining some ground.
State of Bitcoin Miners
Bitcoin miners are in a rough spot.
The current miner capitulation feels like a throwback to December 2022, marked by a 7.7% drop in hashrate, similar to the post-FTX collapse vibes. Historically, such drops signal potential market bottoms.
Miner capitulation is still ongoing. As per CryptoQuant’s Ki Young Ju, it typically ends when the daily average mined value hits 40% of the yearly average; we’re at 72% now. So, it might drag on a bit longer.
Given these conditions, expect the crypto markets to chill with low volatility for the next two to three months. Stay bullish for the long haul, but don’t get too crazy with risks during this period.
Institutional Involvement Is on the Rise
Despite the shaky market, institutional players are stepping up.
Institutions have been making their biggest moves since March, accumulating around 101.6k BTC last week. Unlike the ETF-driven buying sprees of earlier months, this recent accumulation seems like genuine “buy the dip” action by the big players, not just fundraising-driven demand.
Will institutional involvement go up this year? |
Ethereum (ETH)
This Monday, ETH buyers took the wheel after ETH dipped below $3,000. It’s now up to $3,100, but hitting resistance at the 200-day SMA. The Bollinger Band is tightening, showing less price volatility.
After the 200-day SMA, the next resistance wall is at the 20-day SMA, which lines up with the support wall identified by IntoTheBlock between $3,200 and $3,300.
Previously, 1.82M addresses bought 4.04M ETH at this level.
Cardano (ADA)
Talk of a dino coin rising from its slumber, ADA has managed five bullish days in a row!
It jumped from $0.346 to $0.41, flipping the 20-day SMA and Parabolic SAR from bearish to bullish. The next target is the 50-day SMA, which buyers need to break.
So, what has been causing this jump in price? Is it the upcoming Chang hard fork? Or was it the less popular Bad Boy showing his support for the coin?
Crypto Under DNS Attack!
The recent DNS hijacking attack on multiple DeFi apps, including Compound Finance and Celer Network, has exposed serious vulnerabilities in the decentralized finance ecosystem.
Attackers exploited a weakness during the transition of domain names from Google to Squarespace, tweaking DNS records to redirect users to malicious sites with drainer apps designed to steal tokens.
0xNGMI has compiled this partial list of websites that are currently under threat.
So, this really raises the question. How decentralized are we, really? Is crypto just larping as being “decentralized”?
To protect yourself, stay sharp and avoid using affected platforms until things are sorted out. Use secure, well-known entry points to access DeFi apps and double-check URLs to make sure they’re legit.
Is the DNS hack going to ruin DeFi for you? |
Long-term fixes to prevent DNS hijacking include using decentralized domain solutions with verified on-chain records for domains and implementing better authentication for DNS updates, requiring wallet signatures.
Yeah, we know. Easier said than done. But we’ve got to start somewhere.
Anyway, that’s it for today, folks!
We’ll be back this Friday.
Cya!
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