gate Research Institute: The largest Hacker attack in crypto history caused approximately $1.5 billion in losses, Pump.fun tested AMM functionality leading to RAY plummeting over 20%

Summary

• Bitcoin price fell by 0.75% to $95,761.1, Ethereum price fell by 1.04% to $2,752.3.
• Exchange Bybit suffered a security breach, with about $1.5 billion worth of ETH stolen, making it the largest security incident in crypto history.
• Pump.fun tests its own AMM, triggering a significant drop in the price of RAY, the token of the long-standing DEX Raydium.
• Infini suffered a security attack due to internal operational negligence, resulting in a loss of nearly 50 million dollars.
• Pump.fun protocol fee income decreased by 90%, trading volume decreased by 60%.
• Berachain cross-chain bridge received $85.47 million in funds within 7 days.
• The market value of stablecoins in the cryptocurrency market has surpassed $2.265 trillion.

Market Review

• BTC - The BTC price has fallen by 1.07% in the past 24 hours, with the current price at $95,675.6. BTC broke below the $97,000 support level yesterday, turning the support into resistance. The short-term support is around $95,000, with volume and MACD indicating a potential weakening of bearish momentum, but overall bearish sentiment remains slightly strong.【1】

• ETH - The price of ETH has fallen by 1.13% in the past 24 hours, and the current price is $2,737.98. Today, ETH failed to break through the resistance level of $2,840, quickly falling back and breaking the upward trend. The potential selling pressure from hackers attacking assets worth more than $1.5 billion has also brought a certain amount of pessimistic expectations for the ETH price. Currently, the price continues to probe downward, with no significant increase in trading volume, and the market sentiment is bearish.【2】

• ETF - According to SoSoValue data, the total net outflow of Bitcoin spot ETF in the United States on February 21st was $62.77 million【3】, and the total net outflow of Ethereum spot ETF in the United States was $8.92 million. Data as of 11:30 AM (UTC+8) on February 24th【4】
• Shanzhai Coin - Made in China, Liquid Staked ETH, Ether.fi Ecosystem and other sectors changed by +2.3%, +2.0%, +1.8% respectively.【5】
• U.S. Stock Market Three Major Indexes - On February 21, the S&P 500 fell by 1.71%, the Dow Jones Industrial Average fell by 1.69%, and the Nasdaq Composite fell by 2.20%.【6】
• Spot Gold - The spot gold price is at $2,926.63 per ounce, down 0.33% intraday. Data as of February 24, 11:30 AM (UTC+8).【7】
• Fear and Greed Index - Fear and Greed Index 49, indicating that the market is in a normal state.【8】

Popular Tokens

According to the market data of Gate.io [9], combined with the trading volume and price performance in the past 24 hours, the following popular altcoins are as follows:

**FORT (FORT) **— with a daily increase of approximately 66.62%, the circulating market value is 70.34 million US dollars.

Forta is a decentralized secure network that focuses on monitoring transactions and assets in the blockchain. Through its firewall and real-time monitoring capabilities, Forta helps protocols and Rollups prevent malicious behavior and alert potential security vulnerabilities before executing blockchain transactions, thus protecting assets and users in the Web3 ecosystem. [10]

Recently, the multi-signature module of the Forta firewall is about to go online. This new feature is specifically designed to detect and prevent multi-signature attacks, further expanding Forta’s influence in the field of blockchain security. With the increasing severity of hacker attacks, blockchain security issues have attracted widespread attention, and the market’s demand for enhancing transaction security and preventing malicious behavior is growing. The real-time transaction monitoring and security check solution provided by Forta precisely meets this demand, attracting more attention from investors and driving the rise of the FORT token, reflecting the market’s expectations for more features of Forta’s security products in the future.

QUAI (Quai Network) - with a daily increase of about 51.61%, the circulating market value is 1.58 billion US dollars.

Quai Network is a blockchain platform that uses a unique Proof-of-Entropy-Minima (PoEM) consensus mechanism and a layered merged mining architecture to achieve efficient transaction processing and network security. Quai Network adopts a dual-token economic model, with a token called Qi in addition to QUAI. QUAI is mainly used for value storage and network security, while Qi serves as a stablecoin for daily transactions and payments.【11】

Recently, Quai Network introduced self-organizing subnets, a technology that significantly improves performance within a sharding system. Self-organizing subnets can significantly increase network throughput and reduce network latency by optimizing node organization and reducing broadcast latency, with an expected 10x faster propagation speed, resulting in significant improvements in network efficiency and scalability. In addition, the QUAI token has recently been launched on multiple trading platforms and has been supported by a conversion function, providing investors with more trading channels and liquidity, further driving market attention and demand.

**SN (SpaceN) ** - The single-day increase is about 33.59%, and the market capitalization is $55.28 million.

SpaceN is an all-in-one NFT investment management tool designed to help users manage and track their NFT investments. The platform automatically calculates users’ investment returns from buying and selling NFTs, helping users stay informed about changes in NFT assets. The $SN token has various functions within the platform ecosystem, including community governance, opening up creator spaces, accessing exclusive content, staking to create sub-DAOs, and earning rewards for high-quality contributions.

$SN The recent trading volume is small, and there was a large amount of buying at 4:00 Beijing time on February 24, prompting the $N 15min K-line to rise by more than 240%, but then the purchase volume decreased, and the price gradually fell, up about 33.59% in 24h as of the time of writing.

Highlights Data

Pump.fun protocol revenue and trading volume fell by over 90% and 60% respectively from their peak points

Yesterday, Pump.fun’s protocol fee income was $1.49 million, a decrease of about 90.3% compared to the historical peak of $15.38 million on January 25th. At the same time, the trading volume yesterday was $119 million, a decrease of about 69.5% compared to the historical peak of $390 million on January 24th. This data indicates that the market activity of Pump.fun has sharply decreased recently, reflecting a decline in the heat of the meme coin market. Macroscopically, the expected interest rate hike by the Federal Reserve and the contraction of liquidity in the crypto market have put pressure on the highly volatile meme coin track, and the decline in activity in the Solana ecosystem has also dragged down the performance of Pump.fun. In addition, the intensified effect of major meme coins sucking liquidity, weakening attractiveness of new coin issuance, coupled with multiple Rug Pull incidents triggering a crisis of trust, further weakened the platform’s appeal. Pump.fun itself is facing issues such as a single trading scenario and technical risks, while the meme coin battle among CEXs and the rise of AI storytelling have intensified external competition. In the future, Pump.fun needs to break through through ecosystem binding, product innovation, and risk control to prove the long-term value of the meme coin economy.

Berachain cross-chain bridge received 85.47 million USD in funds within 7 days

In the past 7 days, the Berachain bridge has seen a net inflow of $85.47 million, the highest among all public chains, demonstrating the strong appeal of the platform. It was followed by Base and Sonic, which received net inflows of $48.28 million and $37.98 million, respectively. During the same period, traditional large public chains such as Ethereum, Avalanche, and BSC saw the largest net outflows, with Ethereum having a net outflow of $135 million, Avalanche having a net outflow of $110 million, and BSC having a net outflow of $58 million. This trend reflects the market’s increased interest in emerging chains and cross-chain bridges, while mature public chains are facing certain pressure to lose funds. Berachain can become the focus of attention among all public chains. This success is attributed to its unique innovation mechanism and market strategy. Berachain uses an innovative consensus mechanism called Proof of Liquidity, which aims to incentivize users to provide liquidity to the ecosystem rather than just validating transactions. In addition, Berachain also employs a unique three-token model, including BERA (for gas fees), BGT (for governance), and HONEY (stablecoin), aiming to better balance various needs within the ecosystem. At the same time, Berachain is compatible with the Ethereum Virtual Machine (EVM), which lowers the development cost and barrier to entry, and attracts a large number of developers. In addition, the Berachain team is also actively engaged in market promotion, promoting its technological advantages and ecological prospects through various channels. Together, these factors have driven the rise of Berachain. 【14】

The market value of stablecoins in the cryptocurrency market has exceeded $226.5 billion

At present, the total market capitalization of stablecoins in the crypto market has reached $226.532 billion, an increase of $1.031 billion in the past seven days, or 0.46% month-on-month. Among them, USDT is still the absolute dominant player in the market, accounting for 63.07% of the market capitalization share, and its market share is still far ahead despite the rise of competitors. USDC is the second largest stablecoin, accounting for 25.2% of its market capitalization. The seven-day gain was 1.29%.

In addition, the stablecoin PYUSD launched by PayPal has performed well, with a 21.58% increase in the past seven days, reaching a current market value of 774 million US dollars. The launch of PYUSD signifies that traditional financial giants are beginning to enter the cryptocurrency field, further driving the development of the stablecoin market, especially demonstrating the potential in practical application scenarios such as merchant payments and cross-border transactions. The growth of the stablecoin market is not only driven by the liquidity demand within the cryptocurrency industry, but also by external factors such as the entry of traditional financial institutions and the improvement of regulatory systems, making stablecoins an important vehicle for market risk aversion, and also bringing new possibilities to the global payment and settlement system.

Hotspot Review

Bybit encountered a hacker attack, with about $1.5 billion worth of ETH stolen

On the night of February 21, 2025, cryptocurrency exchange Bybit suffered the largest hack in history. The exchange is suspected to have been successfully controlled by the North Korean hacker group Lazarus Group by forging signature interfaces and implanting malicious smart contracts, and stole about 499,000 ETH (about $1.5 billion). Not only did the hack set the record for the largest theft in the history of the crypto industry, but it also had a profound impact on the entire market.

After the news was exposed, the price of ETH dropped by more than 7% at one point, reaching a low of $2,618. Market panic quickly spread, with a total of $2.4 billion in panic withdrawals by users within 24 hours. After the incident, the exchange quickly took countermeasures and cooperated with other exchanges. Gate.io also actively supported the tracking, interception, and other assistance of stolen funds. Subsequently, the market sentiment gradually stabilized, and the price of ETH rebounded to over $2,700 within 24 hours. Currently, the exchange is actively replenishing its ETH reserves to compensate for the losses caused by the hacker attack.

This hacking incident highlights the many security vulnerabilities in the encryption industry, especially when using technologies such as multi-signature cold wallets, the complexity of smart contracts, and the limitations of cross-chain bridges can easily become a breakthrough for hackers. The encryption industry urgently needs to establish a more rigorous security protection mechanism to ensure asset security.

**Pump.fun tests its own AMM, RAY price drops significantly **

Pump.fun released a new Swap module on its official website, and the community speculated that this could be a signal that the platform is ready to launch its own Swap platform, possibly replacing the current third-party AMM provider Raydium. This change has led to a significant drop in the price of Raydium’s native token, RAY, which has fallen by as much as 22.1% in 24 hours, and is currently trading below 3.5 USDT at $3.4. Data as of February 24 at 11:00 PM (UTC+8). 【17】

As an important liquidity provider in the Solana ecosystem, Raydium may face significant market competition pressure in the short term once it loses this partner. In addition, the success of Pump.fun launching its own AMM platform still needs to be observed in terms of its technical implementation and community acceptance, but in any case, it will intensify the competitive landscape of cryptocurrency trading platforms.

Infini, due to internal operational negligence, led to abnormal fund circulation, fully guaranteeing the reimbursement of user assets

On February 24, 2025, the Infini platform was mistakenly judged by the outside world to have suffered a hacker attack, resulting in the abnormal circulation of approximately 49.5 million dollars. However, founder Christian later clarified that the actual situation was not a hacker intrusion, but a result of negligence by internal staff during the transfer of permissions. Christian emphasized that the personal private key was not leaked, and the withdrawal function of platform users continued to operate normally, and promised to fully compensate users in the worst case. The team is currently fully reviewing the specific reasons for the incident and has taken measures to strengthen internal management and permission control to prevent similar accidents from happening again. Users can continue to use the Infini platform with confidence, and the platform will continue to enhance its security protection capabilities to ensure the safety of every user’s assets.

This incident reflects the management deficiencies of the platform in the handover of authority and internal operation processes, and the need to strengthen internal control and staff training, improve operation processes, and avoid the recurrence of similar issues. This incident reminds the entire cryptocurrency industry that even in the absence of external attacks, internal operational errors may lead to significant losses. All platforms should establish sound internal audit and risk control mechanisms to ensure the security of user assets.

Financing Information

According to RootData, in the past 72 hours, a total of 4 projects publicly announced financing, with a total financing amount exceeding $12.5 million. The highest single financing amount reached $6.5 million, involving infrastructure, DeFi, and other fields. The specific financing situations are as follows: [19]

Primus Labs - Primus Labs has completed a $6.5 million seed round of financing, with participation from Dispersion Capital and Symbolic Capital. Primus Labs is committed to building a privacy-protected data operation platform, achieving efficient integration of off-chain data to on-chain through the adoption of cutting-edge encryption technologies such as Interactive Zero-Knowledge Proof (IZK) and Secure Multi-Party Computation (MPC). The platform ensures the compliance, security, privacy, and verifiability of data, helping to build user-centric, fully decentralized credit protocols and promote continuous innovation and development of the digital economic ecosystem. [20]

Infinity Ground - Infinity Ground has completed a $2 million seed round of financing with investment from Animoca Brands and MH Ventures. Infinity Ground is a native Agentic IDE for Web3, dedicated to empowering creators to quickly build dynamic interactive experiences using modular intelligent development toolkits (IDK), making innovation as simple as assembling LEGO. With its independently developed ING network and Initia’s Interwoven Stack technology, Infinity Ground achieves cross-chain interoperability, supporting mainstream blockchain networks such as Base, BNB Chain, and Kaia. The project aims to cultivate ‘super individuals,’ accelerate the development and implementation of AI-driven applications, and further promote the continuous innovation and development of the Web3 ecosystem.【21】

Layer3 - Layer3 has completed a $4 million financing round with participation from Greenfield. Layer3 is a protocol dedicated to supporting community-led governance, aiming to promote the development and application of the Layer3 ecosystem. It provides essential cross-chain infrastructure covering areas such as distribution, identity verification, and incentive mechanisms. The core product of Layer3 is a platform capable of handling a large number of on-chain transactions, helping crypto projects increase user participation and drive economic growth. To date, Layer3 has processed over 150 million transactions, serving more than 2 million users and over 600 applications. [22]

Airdrop Opportunity

**Teneo Protocol **

Teneo Protocol is a decentralized platform designed to connect real-world data with Web3 applications, focusing on the utilization and tokenization of decentralized physical infrastructure network (DePIN) and artificial intelligence (AI) data. Teneo has completed a $3 million seed round of financing, led by RockawayX and Borderless, with participation from Generative Ventures, further accelerating the development of its decentralized data ecosystem. Users can participate in data contribution by running Teneo community nodes and earn Teneo points, which can be converted into $TENEO tokens in the end.

Participation method:

1. Download the Teneo extension: Visit the official Teneo website, download, and install the browser extension.
2. Register and connect to the node: Register an account with a valid email and password, enter the referral code to receive a 2,500 point reward.
3. Start earning points: After connecting to the node, keep the extension online to automatically accumulate points.

Tip: Airdrop plans and participation methods may be updated at any time. Users are advised to follow the official channels for the latest information. At the same time, users should participate cautiously, be aware of risks, and conduct sufficient research before participation. Gate.io does not guarantee the subsequent distribution of airdrop rewards.
Reference:

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11. X,https://x.com/QuaiNetwork/status/1893772702411837482
12. X,https://x.com/spacenNFT/status/1892832000790163599
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14. Defillama,https://defillama.com/bridges
15. Defillama, https://defillama.com/stablecoins
16. Coindesk,https://www.coindesk.com/markets/2025/02/21/bitcoin-ether-slumps-as-crypto-prices-crumble-on-report-of-massive-usd1-4b-bybit-security-incident
17. X,https://x.com/AggrNews/status/1893828729635225600
18. Techflow,https://www.techflowpost.com/newsletter/detail_75962.html
19. Rootdata, https://www.rootdata.com/Fundraising
20. X,https://x.com/primus_labs
21. X,https://x.com/infinityg_ai?mx=2
22. X,https://x.com/greenfield_cap/status/1892937674022887753
23. Teneo Protocol,https://teneo.pro/community-node

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