• Following the attack on Zabu Finance, DeFi platform Vee Finance was attacked.
  • Avalanche's native token AVAX and Vee Finance's VEE plunged.
  • VEE posted 40% losses in the past 24 hours.

Avalanche network has suffered another exploit, wiping out millions from its total value locked, which is considered equivalent to market capitalization for decentralized networks. 

$35 million lost in attack on Vee Finance, marking the second exploit on the Avalanche network

A layer one proof-of-stake blockchain, Avalanche network noted a massive spike in total value locked over the past few weeks. The network's native asset AVAX rallied in response to the rising demand.

The layer-one blockchain network was victim to two recent exploits, draining Zabu Finance and Vee Finance of a total of $130 million. Zabu Finance was the first decentralized finance protocol to suffer an exploit on Avalanche. The September 12 attack amounted to $3.2 million, and the DeFi app has hashed out a plan to compensate pre-hack holders. 

Vee Finance, a lending protocol platform, lost 8804.7 ETH and 213.93 BTC, amounting to $35 million. The platform is yet to hash out details of the hack. 

Vee Finance has addressed the hacker in a public tweet,

We're willing to launch a bounty program for the bug you identified. Please connect us via email or other contact you prefer.

On Saturday, Vee Finance's total value locked crossed $300 million before the attack. The price of the platform's native token VEE plunged over 40% within a single day. 

The launch of Avalanches's $180 million incentive program attracting dApps to its network garnered the attention of several developers. Only $5 million in incentives have been unlocked, and the network is now faced with the challenge of securing dApps from future exploits.  

The recent incidents have wiped $130 million from Avalanche network's TVL, and native token AVAX is trading 15% below its 7-day peak of $75. AVAX offered the highest risk-adjusted returns to traders last week, and analysts continue buying in anticipation of a second leg up. 

Zhi Ko, the co-founder of Solstarter.org, shared in a recent tweet that he has bought Avalanche network's native asset. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP