Illicit flows on the Ethereum network have surged according to recent data shared by Chainalysis. 
The new development coincides with the recent Curve Finance hack that saw attackers steal $73 million.

Illicit inflows on the Ethereum network have surged in recent times. The new development is especially concerning, as it marks the highest inflow of illicit flows recorded this year.

Notably, Chainalysis, a leading Blockchain data platform, rolled out fresh data showing that out of the total flows recorded on the network, illicit flows tracked were nearing 2%. This took place in the previous week and lasted for several days. Although the metrics have changed since the 6th of August, they sat between 1.7% and 1.82% during the 30th of July and the 5th of August.

The Wthedeum network also saw illicit flows hit an all-time high in January when 1.46% of the network’s flow was made up of illicit flows carried out on the network.

Notably, the recent surge in illicit flows on Ethereum comes after a leading DEX faced exploitation. Curve Finance, a leading decentralized exchange, was recently exploited by attackers. The platform saw more than $73 million swept off its pools on July 30th.

Although PeckShield revealed that $52.3 million of the stolen funds from the pools have been recovered, Curve is hoping to recover the rest of the funds and potentially track down the attackers.

The exchange has pledged to give $1.85 million to anyone with relevant information that could help with tracking the culprits.

Ether continues to make a slow but steady recovery

Meanwhile, Ethereum investors and traders seem to be unfazed by the ongoing turbulence in the DeFi ecosystem. Notably, market players are holding on to predictions that suggest that Ether would dethrone Bitcoin in the near term or the long term.

However, some prominent figures are convinced that Ether still has a long way to go. Speaking to this effect, Benjamin Cowen, a prominent figure in the cryptocurrency market, has spoken up about the highly anticipated “flippening”.

According to the market player, Ethereum (ETH) still has a long way to go before overthrowing Bitcoin. He pushed back on claims that the Ethereum merger would launch Ether into a bull rally that could later result in Bitcoin taking the back seat. He wrote on X.

The flippening narrative gets promoted a lot, and more so following the merge. But if the merge were a game changer that would lead to ETH flipping BTC, why has ETH / BTC been putting in lower highs and lower lows since the merge? Narratives are fun. Price action is king.

Meanwhile, Ether is still attempting to reclaim the $2,000 price level. At press time, the altcoin is trading for $1,859. However, weekly and hourly gains are beginning to surge.

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Filed under: Bitcoin - @ August 9, 2023 3:07 pm