- Millions have drained in the recent Solana Wallet hack which squeezed funds out of 8000 Solana wallets worth more than $8 million
- The SOL price began to deplete just before the monthly close, was heavily fueled by the recent attack and reached the bottom below $38
- While the hacker stole the private keys of the hot wallet and executed the theft, the significance of the cold wallet is highly in demand
Impact on SOL Price after Solana Wallet Hack News
Solana platform has been breached multiple times since the beginning of the year and while the protocol claims to have withstood the flaws, another attack has shaken the crypto space. In a recent update, Solana crypto wallets were targeted and the SOL tokens were squeezed out after gaining access to the private keys.
The Solana crypto hot wallets including Phantom, Slope, and Trustwallet were targeted, heavily impacting the mobile users. Moreover, third-party service is also suspected to have been hacked. On the other hand, the wallet providers Phantom & Magic Eden have already confirmed the attack and asked users to revoke permissions for any suspicious links.
Conversely, the SOL price was adversely impacted following the attack. The asset had gained more than 6% prior to the attack and following the hack, the price drained nearly 12% to reach the lows at around $37.40 and rebounded fairly. At the press time, the SOL price is around $39.52 with a drain of around -2.54% from the previous day’s close.
Check Solana Crypto INR Price, Charts, & Data.
Solana Price Technical Analysis
Solana’s price is bearish today as the asset continues to drain that it ignited during the previous month’s close. Initially, the SOL price dropped more than 4% in the first few hours marking the lows at around $38 and currently settling close to $40. The asset is expected to be surrounded by bears who may attempt hard to slash the price close to $25.
The selling pressure may go on a rise, dragging the price below the crucial moving averages in the daily time frame. However, a bullish divergence could propel the price toward the north beyond $50 initially and later beyond $60. Conversely, the broader market is displaying some mixed reactions and minor declines.
Solana Users Urged to Shift to Cold Wallets
Cold wallets are wallets that are not connected to the internet and hence carry fewer possibilities of being compromised. These can also be called offline wallets or hardware wallets, unlike hot wallets which are connected to the internet. Cold wallets are generally considered for long-term investment.
After the recent hack, the need for Solana cold wallets has surfaced in the waters. Prominent figures within the crypto space raised their voice and urged the Solana community to transfer their hot wallet holdings to their respective cold wallets.
Shit tons of wallets being drained.
If you are using a hot wallet like Phantom then consider sending funds to your hardware wallet or even to an exchange account until we find out what is going on!
— Lark Davis (@TheCryptoLark) August 3, 2022
On the other hand, the Cardano ecosystem took the advantage of the hack and said that the Solana preferred speed over security. Therefore Cardano will move as per its pace and achieve the target.
Additional Read: Solana Wallet Attack Update
How to Keep your Crypto Safe
As the popularity of the cryptos has widened, the need of securing the holdings has become very much important.
- First and foremost undertake a hybrid approach toward digital security.
- While online wallets have been attracting the attention of hackers, cold wallets can be considered to store a major share of the holdings.
- Securing the wallets with passwords, and choosing the best-suited crypto wallet is extremely important
- As most traders do trade using their mobile phones, the requirement to avoid phishing
- Also one has to be aware of different methods & processes to protect their wallets and never share your private key with anyone
Importance of Crypto Portfolio Diversification
Allocating your investment in a wide range of assets may help you to hold the principal amount in times of a bearish market. Using the diversification strategies, one can easily the investment goals, protecting the funds and getting exposed to cryptos for the long term.
Diversification reduces the possibility of risks, smooths out the returns and also helps to improve long-term portfolio performance. For effective diversification, one has to invest in more than one coin or token. You can choose different cryptocurrencies with diversified fundamental values or with different potential valuations.
Additional Read: How to Diversify Your Portfolio
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].
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