Compromised Solana bridge Wormhole shaved 13% off SOL value in a day

solana SOL wormhole ethereum
image from medium.com

Key Solana Takeaways:

  • DeFi bridge protocol Wormhole was hacked for $320 million.
  • Compromised bridge between Solana and Ethereum slashed the SOL price.

YEREVAN (CoinChapter.com) – Solana’s SOL token dropped 13% after news about a compromised bridge between Solana and Ethereum (ETH) hit the wire. One of the largest bridges between the two networks, Wormhole, was hacked late on Feb 2. The unknown culprit walked away with over 12,000 wrapped Ether (wETH) coins, equivalent to approximately $320 million.

As CoinChapter reported earlier, the Wormhole hack constituted the second-largest DeFi protocol. Additionally, the Protocol’s official Twitter page confirmed the hack and noted that “ETH will be added over the next hours “o ensure wETH is backed 1:1.”

Before confirmation, the Wormhole team investigated and took the network down for maintenance.

Also read: Wormhole Protocol hacked: Attacker walks away with $320M.  

Wormhole tried to return the stolen funds and contacted the attacker. Moreover, the bridge team left an address for the culprit to contact.

We noticed you were able to exploit the Solana VAA verification and mint tokens. We’d like to offer you a whitehat agreement and present you a bug bounty of $10 million for exploit details, and returning the wETH you’ve minted.

read the message.

Also read: Bearish times ahead for Solana as SOL forms ominous death cross.

However, the effort remains fruitless. For the time being, Wormhole announced it patched the breach, and the team will get the network back up “as soon as possible.”

Meanwhile, SOL…

…declined 13% since the hack and traded at $97.2 in Thursday’s New York session. The digital asset’s price action looked like the Bitcoin chart, featuring a Descending Channel. The latter consists of two parallel trendlines that prevent the price action from sharp breaks.

Solana (SOL) in a Descending Channel. Source: SOLUSDT on TradingView.com
Solana (SOL) in a Descending Channel. Source: SOLUSDT on TradingView.com

SOL retested the Channel’s support on Jan 25-26 and headed for the resistance trendline, but the hack rained on SOL’s parade. As a result, the token fell and hinted at a further decline towards $86.6.

Moreover, the platform’s total value locked (TVL) lost over 12% in the previous 24 hours.

Solana TVL. Source: DeFiLlama.com
Solana TVL. Source: DeFiLlama.com

Also read: Ethereum killers Solana (SOL), Terra (LUNA), and Avalanche (AVAX), back on track after brutal January—what to expect?

While the Wormhole hack lost the bridge over $320 million, the hacker behind the attack remained anonymous. They did not yet answer the whitehat plea from the Wormhole team, and the latter patched the security breach. Affected by the attack, SOL fell over 13% and declined in the New York session on Feb 3. The upcoming days will show if the token can recover fast.

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