Ethereum News: $13 Million Stolen from Abracadabra.Money in Major Security Breach During GMX Integration

In a significant security breach, decentralized finance platform Abracadabra.Money lost approximately $13 million to digital thieves during the integration of GMX V2. Here’s a detailed summary of the incident.

Abracadabra.Money Hit by $13 Million Exploit Amid GMX Integration Breach

A massive security failure resulted in digital thieves obtaining approximately $13 million from decentralized finance operations. On March 25, PeckShield reported that attackers had struck Abracadabra.Money smart contracts alongside their GMX V2 integration during a network breach. The thieves transferred the stolen 6,260 Ethereum (ETH) from Arbitrum to Ethereum via a blockchain bridge, dispersed across three addresses. GMX’s core contracts remain secure, limiting the exploit to Abracadabra’s cauldrons. Source: PeckShield.

Celo Completes Migration to Ethereum Layer-2 Network

The Celo blockchain has successfully completed its migration to become an Ethereum layer-2 chain, marking the end of a nearly two-year process. The transition, which began in July 2023, included a community vote in July 2024 and a competition won by Optimism. The improved network offers faster and cheaper transactions on top of Ethereum’s mainnet, powered by Optimism’s OP Stack. This customizable framework allows developers to build layer-2 networks using Optimism’s technology.

Ethereum Volatility Set to Surge in April: Derive Flags Bearish Sentiment Shift

Ethereum may be entering a period of heightened volatility, according to decentralized options platform Derive. Nick Forster, the founder of Derive, told Decrypt that Ethereum’s implied volatility is currently NEAR monthly lows, with 7-day and 30-day tenors sitting at 59% and 45%, respectively. Historically, such low levels rarely hold, and April could mark the beginning of a sharp upswing in Ethereum volatility. Despite the muted volatility, Ethereum’s forward rate is currently below the U.S. 5% treasury bill rate, signaling weak near-term confidence.

Analysts Say Ethereum Struggles as Competition Intensifies

Analysts say Ethereum is struggling to keep pace as rival blockchains attract users with faster speeds and lower costs. Technical challenges and growing reliance on third-party networks are weakening Ethereum’s position in decentralized finance. Investor interest is shifting toward speculative trading like memecoins, reducing focus on Ethereum’s original financial use cases. Outflows from Ethereum-related investment products signal fading confidence among both crypto-native users and institutional investors.