In October 2024, decentralized finance protocol Radiant Capital experienced a significant breach, losing $58 million due to a cybersecurity attack on BNB Chain and Arbitrum. The hacker converted the stolen funds into Ether, which has since almost doubled in value, turning the original sum into approximately $103 million. This increase in value coincides with Ether’s price surge, which closed at over $2,300 on October 15, 2024, and exceeded $4,700 recently.
Analysts suggest that the hacker’s decision to hold Ether was likely driven by considerations of operational security and liquidity, rather than a strategic investment decision. Stolen funds are often converted to Bitcoin or Ether to avoid token freezes and leverage their liquid market infrastructure.
Ether’s price growth can be attributed to several factors, including the launch of Ether spot ETFs in the US, which have attracted substantial investment. Additionally, the supply of Ether on exchanges has decreased due to staking activities, with over 36 million ETH now staked. Corporate holdings of Ether have also increased, with companies reportedly holding over $100 billion worth of the cryptocurrency.
Regulatory developments have also played a role, particularly the SEC’s decision to drop its investigation into Ether’s status as a security. Furthermore, Ethereum’s ecosystem has expanded, with the implementation of the Dencun upgrade and significant growth in layer-2 transactions, which have reached new daily highs.
