Ethereum (ETH) is peaking and traders, it seems are quickly taking their profits.
For perspective, and to quantify how fast longs are scrambling for the exits, the second most valuable asset is down 5% in the last trading day.
Ethereum (ETH) bulls Falling Short
Peaking over the weekend, $20 just shy of the important $300 level, the exhaustion of bulls is clear. Given, the coin’s rally has been spectacular.
In just under two months, the asset’s price rallied from Dec 2019 lows more than doubling to $280. In that impressive rally, ETH gained 140% against the greenback.
While prices soared, the burgeoning DeFi ecosystem, a sub-sector that has seen over $1 billion of ETH locked up, continues to grow.
The idea of open finance, of lending and borrowing funds without intermediation is an attractive proposition it seems.
More users are flocking to the industry. Meanwhile, the concept of flash loans is attracting diverging opinion following the loss of $350k by BzX, a DeFi protocol from where Fulcrum is built.
The BzX exploit and the $350,000 Arbitrage Money
Over the weekend, a skilled coder took advantage of the flash loan feature, borrowing 10,000 ETHs and through arbitrage, earned a cool $350k in a matter of seconds.
This DeFi issue is another great example of info assyemtries in crypto.
😱 Everyone outside of #Ethereum refers to it as a “hack”
👀 Anyone inside knows it was an exploit
The use of the term “hack”,