Solana (SOL) and Ethereum (ETH) Price Surges Post Crypto Bridge Hack
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- The attacker required no investment in Ethereum.
- Wormhole was hacked for $320 million in Wrapped Ethereum on Wednesday.
The price of Ethereum and Solana has risen significantly in the recent day. There has been an 8 percent increase in the value of Ethereum since the beginning of the week and an 11 percent growth in Solana, a smart contract-enabled network. Shortly before these double-digit gains, one of this year’s most significant feats occurred.
Wormhole was hacked for $320 million in Wrapped Ethereum on Wednesday. It’s a crypto bridge technology that allows various networks to communicate with one other. Wrapped Ethereum is a cryptocurrency pegged to the Ethereum value and is compatible with other Wormhole-compatible networks such as Solana, Avalanche, and the Binance Smart Chain.
Signs of Recovery
The attacker required no investment in Ethereum to get 120,000 Wrapped Ether for free. Wormhole and Solana’s linkage was the primary source of the SOL token’s demise, not an explicit fault in Solana.
“Solana bug” and “theDAO hack” are not the same thing, and thus was not an “Ethereum bug” in the same sense. Ethereum Virtual Machine (EVM) and Solana are both tools, and learning how to use them correctly takes time. SOL dropped from $111 to $97 shortly after the breach and then to $95 on February 3rd.
Wormhole-based WETH was effectively unbacked by its underlying tokens because of the nature of the hack, which allowed the hacker to mint the asset without staking the token. Since then, both Solana and Ethereum have shown signs of recovery. SOL is back over $105, while ETH is presently trading at $2,940.59 according to CoinMarketCap.
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