Solana price recovers from downtrend after $325 million restored on Wormhole network
- The Wormhole network announced that $325 million lost to an exploit on Thursday is restored.
- After retrieval of stolen funds, Solana price posted 6% gains overnight.
- The address associated with the exploit holds a 93,750 Ether balance; it is unclear if the hacker returned funds.
Solana price recovered from the bloodbath that followed the largest DeFi hack of 2022. The Wormhole network announced that stolen funds had been restored.
Solana network recovers from bloodbath and DeFi hack
Hours after the Wormhole network announced that $325 million was lost in the largest DeFi hack, the crypto was recovered. Jump Crypto restored the funds. Jump Crypto is the cryptocurrency-focused arm of a quant trading firm.
Jump Crypto announced,
[Jump] believes in a multichain future and that @WormholeCrypto is essential infrastructure. That's why we replaced 120k ETH to make community members whole and support Wormhole now as it continues to develop.
.@JumpCryptoHQ believes in a multichain future and that @WormholeCrypto is essential infrastructure. That’s why we replaced 120k ETH to make community members whole and support Wormhole now as it continues to develop.
— Jump Crypto (@JumpCryptoHQ) February 3, 2022
The firm revealed that it replaced 120,000 Ether to support community members on the Wormhole network. The bailout made it clear that hackers failed to refurbish stolen cryptocurrencies.
The Wormhole network had offered a $10 million bounty to hackers in exchange for the $325 million in Ether. The hacker's address still holds the stolen Ether from yesterday's exploit, therefore, it is likely that the agreement was rejected.
News of the largest DeFi hack of 2022 on Solana's Wormhole acted as a factor negatively influencing the altcoin's price. Solana price plummeted nearly 10% overnight following news of the Wormhole exploit.
The altcoin has recovered from its bloodbath. @CryptoGodJohn, a cryptocurrency analyst and trader, evaluated the Solana price trend and noted a retest of range lows before the Ethereum-killer could start its next leg up.
$SOL beautiful retest of range lows
— Johnny (@CryptoGodJohn) February 2, 2022
Flip range highs and next leg up starts
Haven’t seen this much strength from Solana in what feels like forever pic.twitter.com/Ckyta8CAH9
FXStreet analysts believe outlook on Solana price is mixed.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
