A Mango Markets attack is bleeding into crypto valuations today.
What happened
Yet another massive hack in the world of cryptocurrency could be considered par for the course. This year, more than $2 billion has been exploited from various crypto projects, with Tuesday's hack of Solana-based decentralized lending platform Mango Markets creating a tremendous amount of concern among investors.
As of 2 p.m ET on Thursday, Solana(SOL -7.20%), XRP(XRP -4.78%), and Cardano(ADA -4.99%) were down 2.6%, 1.4% and 2.9%, respectively, over the past 24 hours. That said, it should be noted that these cryptocurrencies have regained much of their losses throughout the trading day. Earlier this morning, these 24-hour declines had been as much as 9%, 8.7%, and 10.4%, respectively.
This hack has resulted in Solana losing approximately one-quarter of its total value locked (TVL) on its protocol. Total value locked is a key metric used to determine aggregate use of a network, with declines suggesting investors are pulling their capital out of a given ecosystem.
This recent hack appears to be the result of a sophisticated investor taking out large positions in leveraged perpetual contracts on the Mango Markets platform. This allowed for a mark-to-market surge in the perpetual contracts held by the trader, boosting the value and allowing the hacker to then essentially withdraw all of the liquidity on the protocol.
So what
This sort of attack on a given project's collateral is one that clearly took a tremendous amount of time and effort. Now, the hacker in question is reportedly open to returning the exploited funds back to the protocol, so long as "bad debt," which arose from a bailout paid to a highly leveraged whale, is repaid. In any case, the ability of one individual to effectively shut down a large and important decentralized lending protocol is big news.
For Solana specifically, this is the latest in a string of security-related issues that have concerned investors. For investors in other projects such as XRP and Cardano, exploits of top-10 projects have clearly provided concern. XRP is battling its own project-specific headwinds tied to an ongoing battle with the Securities and Exchange Commission over whether its token constitutes a security, and Cardano's ecosystem has lost some of its luster following its highly anticipated Vasil Hard Fork upgrade.
Now what
Exploits (or hacks) will remain a key focal point for investors, particularly those who might be skeptical about the underlying technology to begin with. It's still early innings for the nascent crypto sector, and mistakes are going to be made. That said, until the kinks are worked out, many institutional investors might choose to stay on the sidelines.
Chris MacDonald has positions in Solana. The Motley Fool has positions in and recommends Solana. The Motley Fool has a disclosure policy.
FAQs
Can SOL reach $1000? Considering Solana's total supply of 569,041,570 SOL, for the cryptocurrency to reach a price of $US1000 per SOL, its market capitalisation would need to surpass $US569 billion.
What crypto will explode in 2024? ›
Our list of the next big crypto coins to explode in 2024 (x100 Bull Run) : EarthMeta ($EMT) – AI-driven Metaverse platform for decentralized governance and digital real estate. Folki ($FOLKI) – Meme coin integrating with the metaverse.
Why Cardano jumped? ›
The enthusiasm and anticipation surrounding Cardano's smart contracts led to ADA's valuation surging by 30 times. Its market cap touched an impressive $US94.
How much to invest in XRP to be a millionaire? ›
XRP Needed to Make $1M at $156.36 and $521.69
Investors looking to see XRP at $156.36 would need to hold only 6,395 XRP to make $1 million. Notably, they could procure the 6,395 XRP tokens for $3,464. For the ambitious, a mere 1,916 XRP would be worth $1 million. Interestingly, the 1,916 tokens currently go for $1,038.
Which is better Cardano or XRP? ›
From the comparison of Ripple XRP vs Cardano ADA, it can be concluded that both coins are good in what they aim for. Thanks to its fantastic speed and cost efficiency, XRP excels at sending and receiving coins. Cardano provides more functionality for the development of decentralized finance solutions.
Can XRP reach 1000 dollars? ›
It is possible for XRP to reach $1,000 USD, but it is highly unlikely in the near future.
Will Solana hit $500 dollars? ›
Solana Price Prediction 2025
This may bring the SOL price close to the highs of the current bull market, nearing the range of $380 to $450. However, before reaching the significant $500 mark, the SOL price could experience a new decline due to the exhaustion of bullish momentum.
Which crypto has 1000x potential? ›
Being a project that stands out for several reasons, EarthMeta could potentially be the next 1000x in crypto space. Since the project integrates AI with the Metaverse, creating a decentralized digital world, it allows users to own, govern, and interact with virtual cities and assets, providing a unique experience.
Which cryptocurrency will reach $10,000? ›
So far in 2024, Bitcoin (CRYPTO: BTC) has attracted much of the attention of crypto investors, thanks primarily to all the buzz surrounding the launch of the new spot Bitcoin ETFs.
What crypto is expected to skyrocket? ›
As Bitcoin prepares for its next rally, other promising cryptocurrencies are poised to benefit from this upward momentum. Our detailed analysis highlights the top cryptos to consider for substantial returns: PlayDoge ($PLAY), Wiener AI ($WAI), Sealana ($SEAL), Binance Coin (BNB), XRP (XRP), and Solana (SOL).
The Path to $10
Telegaon, another crypto analysis platform, offers a broader range, suggesting ADA could reach $10 between 2030 and 2035. Telegaon sets a maximum target of $9.08 for 2030 and a minimum target of $14.65 for 2035.
Can Cardano reach $50? ›
Forecasts indicate that Cardano could reach $45, but not until 2050. Forecasts for that year predict a maximum token price of $45.87, with minimum and average costs estimated at $39.12 and $42.41.
How much Cardano should I own? ›
If you're wondering “how much Cardano should I buy to stake” know that it depends on how much you want to earn back annually. Staking Cardano currently comes with an annual percentage yield of around 4%. So if you want to earn 400 ADA coins annually, then you would need 10,000 ADA to stake.
Will $100 XRP make me rich? ›
At the time of writing, the value of one XRP token is approximately $0.50. Therefore, investors would need around two million tokens to hold XRP worth one million dollars. However, a study suggests that even having less than 100 XRP could be enough to reach the milestone of being a millionaire.
Will XRP reach $500 dollars? ›
Can XRP Reach 500 Dollars? For XRP to achieve a price of $500, it would necessitate an increase of over 1,000 times its current value. While theoretically possible in the dynamic world of digital assets, this scenario faces significant practical hurdles.
How much do I need to invest in crypto to become a millionaire? ›
While this is a lower-bound scenario, we can use it as a baseline to show what it takes for investors to become Bitcoin millionaires. Assuming an annualized return of 30%, one would need to invest roughly $85,500 annually for five years to hit millionaire status. Over 10 years, this number falls to around $18,250.
What will Cardano be worth in 2030? ›
Cardano (ADA) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 0.404968 |
| 2026 | $ 0.425216 |
| 2027 | $ 0.446477 |
| 2030 | $ 0.516853 |
1 more row21 hours ago
For XRP to reach $10, the market cap is around $520 billion, considering the current circulating supply, which would make the project almost double the value of the second largest cryptocurrency, Ethereum.
Is Cardano worth the risk? ›
The investment potential of Cardano depends on several factors, such as individual risk tolerance, investment objectives, and market conditions. Many experts believe Cardano is an undervalued investment with significant growth potential due to its wide range of applications in the coming years.
How high could Solana go? ›
Solana price could reach a potential high of $500 by the end of 2024. Solana network has one of the fastest transaction speeds and success rates when compared to its rivals. SOL price, with a potential surge, could go as high as $1672 by the end of 2030. The current price of Solana is $ 169.88107046.
Solana (SOL) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 141.43 |
| 2026 | $ 148.50 |
| 2027 | $ 155.93 |
| 2030 | $ 180.50 |
1 more rowSolana (SOL) Price Prediction 2040
Based on our long-term Solana Coin price forecast, we anticipated that prices could reach a new all-time high this year. By 2040, the maximum price of the SOL Coin is projected to be around $2,619.54. Our average price forecast for Solana is $2,566.13 in 2040.
Can Sol reach 2000? ›
The Solana market may witness further substantial increases in the upcoming months. Currently, it appears that the SOL Token's price could potentially experience significant multiplication. In our forecast, a Solana price of $1,000 or $2,000 seems achievable if the current rate of growth persists.
