Market
Linea’s Blockchain Halt Ignites Decentralization Debate
The recent halt of Linea’s blockchain has ignited discussions about its commitment to decentralization as an Ethereum Layer-2 (L2) solution.
Significant security concerns drove the decision, and industry experts weighed in on the implications for the project’s decentralized future.
Linea’s Effort in Balancing Decentralization and Security
Following Linea’s decision to halt block production, Alex Gluchowski, CEO of Matter Labs, emphasized the importance of decentralization in L2 projects. He noted that central control could undermine the principles that Ethereum L2 projects aim to uphold.
“Decentralizing the sequencer isn’t optional. Every serious L2 stack must race to do first,” he said.
Responding to Gluchowski’s statement, Declan Fox, the Product Lead at Linea, asserted their commitment to decentralizing all aspects of their network. Fox expressed confidence in their progress despite being a newer project compared to others.
Read more: Layer-2 Crypto Projects for 2024: The Top Picks
“Agree that decentralization is not an option. Linea is on a solid path to decentralizing all aspects of the network in a very aggressive time window. Given that many Rollup frameworks more than 2 years older than us are no further ahead, I’m pretty delighted with our pace,” Fox stated.
The Linea team also affirmed its commitment to decentralize its network, including the sequencer. They highlighted that achieving a decentralized, censorship-resistant environment would prevent them from halting block production or censoring addresses in the future.
“Linea’s goal is to decentralize our network—including the sequencer. When our network matures to a decentralized, censorship-resistant environment, Linea’s team will no longer have the ability to halt block production and censor addresses—this is a primary goal of our network. Most L2s, including Linea, still rely on centralized technical operations, which can be leveraged to protect ecosystem participants. Linea’s core value is a permissionless, censorship-resistant environment, so it was not a decision we took lightly,” the team wrote.
Linea stopped its blockchain activities after a security breach occurred on Velocore, a decentralized exchange (DEX) that operates on its network. The breach led to the unauthorized transfer of $2.6 million from the Linea network via an undisclosed bridge service.
Linea suspended its sequencer to prevent the attacker from illegally moving more assets, as they could not reach the Velocore exchange team in time. Additionally, Linea blocked the hacker’s addresses to minimize the impact on its users.
Linea defended its actions, stating that the hacker was starting to sell a significant amount of tokens for ETH. This could have led to additional user problems beyond the liquidity pool-draining exploit.
Despite the controversy, Yu Xian, founder of cybersecurity firm SlowMist, defended the suspension. He argued that it was plausible considering the project’s early stage. Furthermore, Xian stressed the importance of ensuring robust security before achieving full decentralization.
“Choosing to suspend itself and blacklist the L2 of the relevant address to stop the loss of an ecological project being hacked is understandable in the early stage, but it will become more and more impossible as time goes by. The challenges of security and trust are so great,” Xian opined.
Read more: Crypto Project Security: A Guide to Early Threat Detection
Throughout history, there have been cases where developers have temporarily stopped their blockchain operations in response to major security breaches. For instance, in 2022, Binance’s BNB Chain was halted in response to a debilitating bridge hack worth $566 million. Despite the debate, many regard these measures as essential to safeguard the network’s integrity and user security.
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Market
FET Bearish Descent Targets Key $0.966 Level, More Dips Ahead?
Artificial Superintelligence Alliance (FET) is experiencing a prolonged bearish trend, pushing its price closer to the critical $0.966 support level. This sustained downward pressure has raised concerns among investors, as the cryptocurrency continues to extend its bearish momentum.
The $0.966 resistance mark now serves as a significant point of interest, determining whether FET can reverse its current trajectory or continue its descent. Market participants are closely monitoring these developments, analyzing technical indicators and market sentiment to gauge the potential for a rebound or further decline.
This article aims to analyze the extended bearish trend affecting the digital asset and its impact on the cryptocurrency’s price as it approaches the $0.966 resistance level.
FET’s price was trading at around $1.30 and was down by 3.10% with a market capitalization of over $3 billion and a trading volume of over $99 million as of the time of writing. There has been a 24-hour decrease of 3.28% and 29.79% in FET’s market capitalization and trading volume respectively.
FET Price Under Bearish Pressure
Currently, FET on the 4-hour chart is actively bearish trading below the 100-day Simple Moving Average (SMA) and the bearish trend line, dropping toward the crucial $0.966 resistance mark.
The 4-hour Composite Trend Oscillator also confirms more bearishness for FET as both the signal line and the SMA of the indicator continue to trend inside the oversold zone.
On the 1-day chart, it can be observed that FET is very bearish trading below the 100-day SMA and the trend line. Following a rejection at $1.862, the price of FET has been on an extended bearish move heading toward the $0.966 support level.
Lastly, the 1-day composite trend oscillator signals that FET may extend its bearish trend toward the $0.966 support level as the signal line and the SMA are still trending in the oversold zone.
Will FET’s Price Breakthrough Or Face A Rejection
Conclusively, it can be noted that as the price of FET continues to move toward the $0.966 resistance mark, it may break through its bearishness or face rejection and begin to rise.
Therefore, exploring the possible outcomes of the coin, it was discovered that if FET’s price reaches the $0.966 support level and breaks below, it may continue to decline to test the $0.459 level and potentially move on to challenge other lower levels if it breaches the $0.459 level.
However, if the crypto asset faces rejection at the $0.966 support level, it will begin to ascend toward the $1.862 resistance level. When this level is breached, it may continue to climb to test the $2.564 resistance level and may move on to test other higher levels if it breaches the $2.564 level.
Market
Bitcoin Price Takes a Step Back: Analyzing The Recent Correction
Bitcoin price failed to continue higher above the $63,650 resistance zone. BTC is now correcting gains and might revisit the $60,850 support.
- Bitcoin started a downside correction from the $63,650 resistance zone.
- The price is trading below $62,500 and the 100 hourly Simple moving average.
- There is a connecting bearish trend line forming with resistance at $61,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might struggle to start a fresh increase above the $62,250 resistance zone.
Bitcoin Price Dips Again
Bitcoin price struggled to extend gains above the $63,650 and $63,800 resistance levels. A high was formed at $63,798 and the price started a downside correction.
The price declined below the $63,000 level. The bears were able to push it below the $62,500 level and the 100 hourly Simple moving average. There was also a move below the 50% Fib retracement level of the upward move from the $59,951 swing low to the $63,798 high.
Bitcoin price is now trading below $62,500 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance at $61,850 on the hourly chart of the BTC/USD pair.
The bulls are now trying to protect the $61,400 zone and the 61.8% Fib retracement level of the upward move from the $59,951 swing low to the $63,798 high. If there is another increase, the price could face resistance near the $61,850 level and the trend line.
The first key resistance is near the $62,250 level. The next key resistance could be $62,500. A clear move above the $62,500 resistance might start a steady increase and send the price higher.
In the stated case, the price could rise and test the $63,250 resistance. Any more gains might send BTC toward the $63,650 resistance in the near term.
More Losses In BTC?
If Bitcoin fails to climb above the $62,250 resistance zone, it could continue to move down. Immediate support on the downside is near the $61,400 level.
The first major support is $60,850. The next support is now forming near $60,500. Any more losses might send the price toward the $60,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $61,400, followed by $60,850.
Major Resistance Levels – $62,250, and $62,500.
Market
Exploring Upward Momentum and Bullish Prospects
Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.
From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.
In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.
Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.
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At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.
In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.
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