Weekly DeFi Brief: Memecoin Boom, Milady NFT's Rapid Presale Success, and ParaSwap's Averted Hack
Summary:
This report covers the significant developments in the decentralized finance (DeFi) sector over the past week. Key points include Solana-based decentralized exchanges (DEXs) outperforming Ethereum exchanges in trading volume due to the memecoin trend, the launch of the Milady NFT series' token which reached $18.6 million in presale in under two hours, a potential hacking attack on ParaSwap being thwarted, and a drop in Ether (ETH) value by 18%. The overview also includes data from Cointelegraph Markets Pro and TradingView showing a downward trend for DeFi's top 100 tokens.
Here's your go-to digest of key decentralized finance (DeFi) events from the previous week — an informative report highlighting the most noteworthy updates from the world of DeFi.
The memecoin fascination has propelled Solana-based decentralized exchanges (DEXs) to lead the trading volume boards, outperforming rival Ethereum exchanges. Numerous tokens outperformed Ethereum-based memecoins in DEXs trading volume within mere hours of their launch.
In other memecoin updates, the Milady NFT series jumped on the memecoin bandwagon with the launch of their own token, netting $18.6 million in under two hours of its presale announcement.
ParaSwap successfully thwarted a potential hacking attack by pressing pause on its Augustus v6 contract API after they spotted a security loophole. The platform saved possible victims' assets via a white hat intervention.
In the meantime, the value of Ether (ETH) has taken an 18% plunge over the last week, hitting a fresh all-time high of over $4,000. Should the price plummet to $3,100, positions amounting to $212 million could be on the brink of liquidation.
Over the weekend, Solana network's activity outpaced that of Ethereum while users were earnestly acquiring Solana-based memecoins — this resulted in an upsurge in network load.
On the 16th of March, Solana’s cumulative trading volume escalated to $3.52 billion, overriding Ethereum's daily volume by more than $1.1 billion, as reported by DefiLlama.
In less than two hours after announcing its presale, the novel Solana memecoin from the NFT collection Milady racked up 91,486 SOL ($18.6 million).
Milady unveiled their Solana-based memecoin, named Milady Wif Hat, on the 18th of March. The memecoin, named after the popular Solana memecoin Dogwifhat (WIF), reached its limit of 88,888 SOL during the presale, leaving it oversubscribed. The team announced that any excess Solana gathered would be refunded fully.
ParaSwap averted a huge loss of funds due to a vulnerability in its newly implemented Augustus v6 contract, prevented by a timely white hat intervention. The contract, which was launched live on March 18th, aimed to boost swap efficiency and cut gas costs.
If Ether's value falls below the $3,100 threshold, over $212 million worth of leveraged long positions could be liquidated. Ether saw a 9.3% fall to $3,254 in the 24 hours leading up to 10:40 am UTC on the 19th of March. An 18% drop on the weekly chart puts Ether at risk of cascading over $212 million in long leverage, as per data from Coinglass.
Information from Cointelegraph Markets Pro and TradingView confirms a rough week for DeFi's top 100 tokens by market capitalization, with the majority of them in the red on weekly charts. The total capital locked in DeFi protocols slipped below $100 billion.
That wraps up this week's pivotal happenings in DeFi. Join us next Friday for more updates, insights, and understanding regarding this rapidly evolving sector.
Published At
3/22/2024 10:25:00 PM
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