The world of cryptocurrencies has been abuzz with activity this past week, with several notable events unfolding in the industry. From a significant security breach at Loopring to the rise in Bitcoin-based NFT sales, the cryptocurrency landscape continues to evolve, showcasing both the challenges and the opportunities that lie ahead.
Loopring Suffers $5M Hack via Compromised 2FA
Ethereum zero knowledge-rollup protocol Loopring announced on Sunday that it had suffered a $5 million security breach of its two-factor authentication (2FA) service, known as “Guardian,” for its smart wallets application. The attacker somehow compromised Loopring’s 2FA service, allowing them to initiate a recovery process that reset wallet ownership and enabled the withdrawal of assets.
Loopring shared two wallet addresses it alleged were involved in the exploit, with Etherscan data showing one wallet holding over $5 million worth of cryptocurrencies. The project said it is actively collaborating with security experts to determine how the 2FA service was compromised and is working with law enforcement to track down the perpetrator. Loopring has temporarily suspended Guardian and 2FA-related operations to halt the ongoing compromise.
Bitcoin NFT Weekly Sales Bump
Nonfungible token (NFT) sales volumes have seen an 18.9% weekly rise, bolstered by the sales of Bitcoin Ordinals. Seven-day NFT sales volumes hit $147.3 million, with Bitcoin-based NFT sales rising over 57% to nearly $49.7 million, according to CryptoSlam! data.
| Blockchain | Seven-Day NFT Sales Volume |
|---|---|
| Bitcoin | $49.7 million |
| Ethereum | $35.6 million |
| Polygon | Double-digit percentage growth |
| Immutable | Double-digit percentage growth |
| Blast | Over 95% bump to $4.6 million |
The top seven blockchains by seven-day NFT sales volume saw notable growth, with Blast seeing an over 95% bump to over $4.6 million in volume, largely due to the crypto influencer NFT trading card game fantasy.top. Other big movers included Polygon’s Milady-reminiscent Moon Girl NFTs, which bumped 643% to nearly $5.8 million, and Immutable’s Guild of Guardians game, which saw a 22% bump to $7 million.
Ethereum L2s “Shouldn’t Be Immutable,” Says Uniswap Founder
Ethereum scaling layer-2 blockchains should not focus on immutability, says Uniswap founder Hayden Adams. He argues that it “makes zero sense” to expect layer 2 networks “to never upgrade again or force mass migrations,” as the interconnected nature of users and apps on the L2 chain breaks composability if some migrate and some don’t.
“Ethereum L2s shouldn’t be immutable. It’s been 10 years and L1 is not ready to be immutable,” Adams wrote in a June 9 X post.
The Ethereum Foundation has stated that layer 2 blockchains are its scalability plan, leading some, like Rarible’s ecosystem lead Jonathan Colón, to call layer 2 networks a “money grab.” However, Adams argues that the work on building these layer 2 solutions is not being funded by the Ethereum layer 1, and calling them “cash grabs” or saying they need to be immutable doesn’t change the fact that they are necessary for Ethereum’s scalability.
