DeFi Platform Raft Compromised, Loses $3.3 Million in Ether

A massive security breach recently occurred on the DeFi platform known as Raft, which resulted in the theft of around $3.3 million worth of Ether (ETH). The fact that the hacker was able to effectively remove 1,577 ETH from the network demonstrates the continued difficulties with security that exist inside the DeFi ecosystem.

The hacker did something quite unusual and transferred 1,570 ETH to a burn address, which basically rendered the bulk of the stolen assets useless. In sharp contrast to the significant sum that had been stolen in the beginning, the attacker was left with just seven ETH after this. This peculiar behavior led to the hacker suffering a loss, despite the fact that he or she had previously been paid 18 ETH by means of a crypto mixer service in order to allegedly finance the assault.

After the assault, the value of the dollar-pegged stablecoin known as Raft’s R plummeted dramatically, falling by fifty percent relative to its previous level. After some time had passed, it had partly recovered to around 70 cents. Raft’s co-founder, David Garai, has said that the assault and its consequences for the platform are true. Raft is now concentrating its efforts on compensating impacted users by using the sDAI that is controlled by the protocol inside the Peg Stability Module. This move was made in an attempt to limit the extent of the harm.

The issue with the Raft is not an uncommon occurrence in the crypto space. A number of high-profile assaults on Defiant platforms have taken place during the last several months. For example, a well-known cryptocurrency exchange called Poloniex had its hot wallet compromised, resulting in a loss of around $114 million in bitcoin. A breach that cost CoinEx $54 million, a heist that cost HTX (previously Huobi Global) $7.9 million, and the Mixin Network suffering the greatest DeFi hack of 2023 with an estimated loss of $200 million owing to stolen private keys are some of the other noteworthy instances that have occurred.

As a result of these occurrences, there is a heightened awareness of the critical need for DeFi platforms to strengthen the security frameworks they have in place. Trust must be maintained within the ecosystem of decentralized finance, and one of the most important ways to do this is by protecting the user money. This episode should serve as a wake-up call for improved security processes and more diligent monitoring systems in order to forestall future occurrences of events of a similar kind.

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Over 1 Billlion ETH Has Been Burned Since Ethereum EIP-1559

The Ethereum network has been burning ETH since the EIP-1559 first went into effect in early August. Since then, a portion of fees has been continuously burned, taking a large portion of the digital asset out of circulation. This hard fork had been implemented to combat the inflationary nature of Ethereum and it has been successful as countless blocks have been deflationary since the hard fork took place.

ETH Burned Clocks 1 Billion

The amount of ETH burned has risen along with fees on the network. Increased network usage had caused transactions costs on Ethereum to skyrocket and since EIP-1559 was implemented to burn a third of all fees, a higher volume of ETH has been constantly taken out of circulation. The number had quickly hit 1 million ETH, then 10 million, and by 100 million, the community had turned its eyes towards the billion mark.

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Ethereum hit this number on Wednesday when the total number of ETH burned on the network had crossed 1 billion. It only took a little over three months to hit this number and as burning ramps up on the network, it may take even less time to hit the 2 billion mark.

At the current ETH price, the total amount of ETH burned comes out to over $4.2 billion. Prior to EIP-1559, all this volume would have gone into circulation, increasing the amount of circulating ETH, contributing to the inflationary nature of ETH. However, with the burn, Ethereum is headed towards a truly deflationary future.

Impact Of Ethereum Burn

Although Ethereum is not fully deflationary, the impact of the ETH burn has shone through the network in recent times. Some interesting stats show that ETH being put into circulation per mined block has reduced significantly. Since the hard fork, the net reduction has reached as high as 67.16%.

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Additionally, net issuance has also dropped in line with net reduction. Net issuance on the Ethereum network is currently sitting at 490,400 at the time of this writing. There have been 1,493,739 ETH rewards issued, translating to a little over $6.3 billion. While tips on the network have done significantly well, with over 200,000 ETH tipped so far, totaling $846 million.

How Price Has Done In Contrast

Ethereum’s price has done tremendously well since the burn began. Since August, the digital asset has hit multiple new highs and come close to testing the $5,000 resistance point. The asset has since taken a beating down along with the rest of the crypto market but it has held up above $4,000 despite bears trying to pull the price down.

Ethereum price chart from

ETH recovers after dip | Source: ETHUSD on

Indicators have remained bullish even when the market has not fared so well. Analysts have put the digital asset at $5,000 by year-end, propelled by the growth of DeFi. As more investors flock to the blockchain to take advantage of this new industry, Ethereum shows great promise of hitting this price before 2021 runs out.

Featured image from Genesis Block, chart from


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Ethereum Fee Burns Clocks $100 Million, Here’s Why The Burn Is Important

The Ethereum network has now continuously burned base fees for a week straight and in that time frame, the amount of ETH burned has hit $100 million. With over 32,000 ETH burned in the space of seven days. The fee burn rate fluctuates given the network traffic, but the burn continues regardless. Depending on network traffic going forward, the burn rate is predicted to hit 4 ETH per minute very soon.

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The rate at which the ETH is burned currently sits at around 3.38 ETH per minute. This puts the current burn rate at over $10,000 burned per minute. The burn shows that the EIP-1559 upgrade is working as intended, which in the long run will hopefully make the nature of ETH deflationary. But that is not happening just yet. The burning of the base fee is still in its early stages, although it is working smoothly.

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It will take a while for the rate at which new ETH is burned out of circulation to be high enough that ETH’s supply becomes deflationary. But that remains to be the end game here. And this is why the burn is so important to the network.

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The fact that Ethereum does not have a capped supply like bitcoin means that an unlimited number of ETH can be put into circulation. This is one feature that ETH has in common with fiat, the unlimited supply. It is one of the main reasons why the move to ETH 2.0 is so important to the network.

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Putting Less ETH Into Circulation

The ETH burn is basically taking away a huge chunk of ETH that miners would have been given for mining blocks and “burning” the coins. EIP-1559 introduced a base fee mechanism that is determined by the wallet where a transaction is generated and this base fee would be burned. Then the owner of the wallet where the transaction is generated can then add a ‘tip’ to a transaction if they want their transaction to be included in a block faster, basically leading to faster confirmation times.

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In just a week, 32,000 ETH has been burned. This 32,000 ETH would have formerly been added directly into circulation as it is given as a reward to miners. But now, this amount that would have added to supply has been completely taken out of the equation.

For now, it may seem like miners are getting the short end of the stick with this, but ETH potentially becoming deflationary is a win for the market as a whole. Less supply would make ETH coins more valuable, which, in turn, would drive up the price of the asset.

Ethereum Price Going Forward

ETH price has had an interesting run these past three weeks. The asset price which had broken below $2,000 last month experienced a price surge that sent the price surging past $3,000 this month. Ending a two-month-long streak of a painful downtrend.

Ethereum (ETH) price chart from

Ethereum (ETH) price chart from

ETH price dips as the week draws to a close | Source: ETHUSD on

Following the launch of the EIP-1559 saw the Ethereal network become even more popular amongst investors. And as the popularity of the network grew, so did the popularity of its native token, ETH. With more investors coming into the market, the value of the asset has skyrocketed. Although now there has been a bump in the road as a dip in the price has sent ETH barreling back down below $3,100.

Related Reading | Bulls Take Over Market As Ethereum Price Surpasses $3,000, Why Rally May Continue

Short-term, recovery is imminent, as is the case following most dips. But the scale of the recovery will be hard to tell. A 3% price drop in the last 24 hours has seen ETH lose $200 off its price in the same time period. But overall, the market remains bullish and it looks like the dip is only a small obstacle that will be scaled in no time.

Featured image from Coingape, chart from


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