Ethereum price rallies as gaming NFTs surge to record levels in 2021
The blockchain-based gaming market — built largely on the Ethereum network — has been able to accrue $2.32 billion over Q3 2021.
- DeFi platform Grim Finance recently fell victim to a hack estimated to be worth $30 million.
- Early in Q4 2021, the one-month realized correlation between the Ethereum-Bitcoin (ETH/BTC) pair dipped as low as 60%.
- Since the start of the year, Ethereum has registered gains of 560% which is substantially higher than BTC’s annual profit ratio of 110%.
The last 24 hours have seen Ethereum (ETH) resume its upward ascent. It rose from $3,998 to around $4,150, closely following Bitcoin’s current positive price action. As a result, the altcoin has amassed seven-day gains of 5.9%. At press time, ETH is trading at $4,017.
The ongoing momentum comes at a time when a recently released report revealed that the gaming-centric non-fungible tokens (NFTs) have accrued a total of $2.32 billion over Q3 2021 — capturing approximately 22% of the global NFT trading volume.
The study also noted that by the end of November, Metaverse activity had increased substantially, with total virtual land sales amounting to a sizeable $42.6 million. There has also been a +6,500% increase in daily unique active wallets linked with various video game-based smart contracts.
Blockchain-based gaming firms have been gaining a lot of traction recently, with Animoca Brands, an HK-based company, doubling its valuation from $1 billion to a little over $2.2 billion between July and October.
DeFi protocol Grim Finance falls prey to major hack
Decentralized finance (DeFi) protocol Grim Finance revealed that it had a $30 million loss, as per reports. This loss was part of a reentrancy exploit that saw hackers make their way with a number of digital assets, including prominent stablecoins such as US Dollar Coin (USDC) and Dai (DAI).
Security experts working for the firm revealed that the entire development could be classified as an “advanced attack,” with hackers exploiting the system’s native protocol vault contract via a total of five different pathways. Following the incident, a spokesperson for Grim noted that all digital asset transfers had been temporarily suspended. They added:
“We have paused all of the vaults to prevent any future funds from being placed at risk. Please withdraw all of your funds immediately.”
Ethereum “flippening” narrative continues to gain momentum
At the start of November, the BTC/ETH pair showcased a one-month realized correlation of as low as 60%, further adding fuel to the narrative that Ethereum could be on the cusp of finally becoming an independent asset. Statistically speaking, since the turn of 2021, BTC has registered gains of around 110% while Ethereum has grown by +550%, essentially outperforming the flagship crypto by five times.
Disclosure: The author owns a range of cryptocurrencies at the time of writing