The following article is adapted from The Blocks newsletter, The Daily, which is published on weekday afternoons.

Happy Tuesday! This morning, a brief outage at Amazon Web Services (AWS) led to disruptions for several prominent cryptocurrency exchanges, including Binance and KuCoin. Despite this, the broader cryptocurrency markets remain relatively calm, as participants seem to be waiting for the next significant macroeconomic catalyst that could influence market trends.

Today's highlights include a major security breach involving ZKsync, where a $5 million hack of an admin account was disclosed; insights from Bitwise Chief Investment Officer (CIO) Matt Hougan, who indicated that Bitcoin is exhibiting behavior notably different from past market corrections; news about Canada preparing to launch the world's first spot Solana Exchange-Traded Funds (ETFs); and projections from Standard Chartered suggesting that the supply of stablecoins could surge to $2 trillion by 2028.

ZKsync Discloses $5 Million Hack; Token Price Drops by 20%

ZKsync, an Ethereum Layer 2 scaling solution, has reported a significant security breach, revealing a theft of approximately $5 million from a compromised admin account that manages the project's airdrop contract. The attacker is said to have gained control over the remaining unclaimed tokens from ZKsync's airdrop.

In a statement shared on X, the team reassured users that All user funds are safe and have never been at risk. They emphasized that the ZKsync protocol and the corresponding ZK token contract remain secure and that no further ZK tokens are in jeopardy. The company has initiated an internal investigation and is expected to release a comprehensive report detailing the findings once the inquiry is complete.

Following the attack, the price of ZK tokens plummeted by around 20%, a decline that can likely be attributed to the hacker's actions in liquidating the stolen assets. The incident has also drawn criticism regarding perceived inequities in token distribution and the project's inability to adequately filter out Sybil farmers during the upcoming 2024 airdrop.

Is Bitcoin's Current Pullback Different?

In a recent analysis, Bitwise CIO Matt Hougan remarked that Bitcoin is currently exhibiting behavior that is notably different from its performance in previous market pullbacks. He suggested that Bitcoin appears to be positioned for upward movement, contingent upon the removal of existing macroeconomic hurdles.

Despite the recent tariff-related turmoil introduced by former President Trump and the resulting market volatility, Bitcoin has remained relatively stable over the past month, according to Hougan. He pointed out that since Bitcoin surpassed the $1 mark in 2011, it has historically not outperformed the stock market during full corrections. However, he expressed optimism that this time could be different.

Hougan acknowledged that gold has historically performed well as a hedge during market pullbacks, and while the current correction may not be fully resolved, he stressed that this does not diminish Bitcoin's remarkable resilience. The world is unraveling, and Bitcoin is trading above $80,000. If that doesn't give you confidence in its staying power, I don't know what will, he stated.

Canada Set to Launch Spot Solana ETFs

In exciting news from north of the border, Canada is poised to launch the world's first spot Solana ETFs within the week, based on a circular issued by TD Bank and reported by Bloomberg's Senior ETF Analyst Eric Balchunas.

The upcoming Solana ETFs are notable for including staking features, which may yield higher returns than those currently available through ether staking while also reducing the overall costs associated with holding the ETF. Four asset management firmsPurpose, Evolve, CI, and 3iQare set to issue these spot Solana ETFs, having received the green light from the Ontario Securities Commission.

In the United States, asset managers are racing to file applications for spot Solana ETFs in the wake of the earlier launch of two Solana futures ETFs by Volatility Shares earlier this year. Kaiko analysts suggest that improved market liquidity and Teucrium's recent introduction of a 2x leveraged product could position XRP favorably ahead of competing assets in the race for SEC approval of the next spot ETF.

Treehouse Finance Secures Fresh Funding at $400 Million Valuation

In other financial news, Treehouse Finance has successfully raised an undisclosed amount in a new strategic funding round, achieving a valuation of $400 million, as stated by Brandon Goh, the co-founder and CEO. This valuation reflects the fully diluted worth of Treehouse's yet-to-launch native token.

While Treehouse did not disclose the identity of its lead investor, they described it as the venture arm of one of the largest life insurance and financial services firms managing over $500 billion in assets. This venture firm is believed to be MassMutual Ventures, which previously invested in Treehouse's $18 million seed round. MassMutual Ventures did not comment on the matter when approached.

Treehouse aims to tap into a colossal $600 trillion opportunity within traditional finance by introducing fixed-income products to the decentralized finance (DeFi) sector. The startup has also announced plans to establish an eight-figure ecosystem fund, which will be dedicated to fostering DeFi and institutional adoption following the anticipated mainnet launch scheduled for June.

Swedish MPs Propose Rethinking Bitcoin Policy Amid U.S. Initiatives

In a notable political development, Swedish Members of Parliament (MPs) are advocating for a reevaluation of the country's bitcoin policy, particularly in light of recent initiatives proposed by U.S. President Trump for a Strategic Bitcoin Reserve and the increasing global interest in cryptocurrencies.

Veteran MP and member of the finance committee, Dennis Dioukarev, urged Swedens Finance Minister Elisabeth Svantesson to consider integrating Bitcoin as a reserve asset alongside traditional fiat currencies and gold. Additionally, fellow parliament member Rickard Nordin called upon Svantesson to reassess the role of Bitcoin in Swedens financial landscape.

Looking Ahead

In the coming 24 hours, key economic data will be released, including UK Consumer Price Index (CPI) inflation figures at 2 a.m. ET on Wednesday, followed by Eurozone CPI numbers at 5 a.m. Additionally, U.S. Federal Reserve Chair Jerome Powell is scheduled to speak at 1:15 p.m.

Also on the horizon, IOTA and Arbitrum are set to execute token unlocks, which could have implications for their respective markets.

Stay informed with The Block's daily digest, which offers insights into the most influential events happening across the digital asset ecosystem.

Disclaimer: The Block is an independent media outlet dedicated to providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.

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