Cryptocurrencies flashed mild bullish actions on Tuesday, with Bitcoin up 1.50% in the past day to trade at $94,987.
While XRP (+3.21%), DOGE (+5.35%, and HYPE (+8.79%) mirrored Bitcoin’s bounce-back above $95K, Uniswap’s ecosystem developments signal more pain for UNI.
Security platform ScaleBit discovered an alarming vulnerability within Uniswap’s web3 wallet.
Security Alert:
ScaleBit flagged a vulnerability in #Uniswap’s Web3 wallet, exposing users’ mnemonic phrases to potential risk.
South Korea’s Upbit warns about IOST’s layer-2 transition, citing market stability concerns.
The weakness could allow perpetrators to compromise all assets stored within the wallet.
Meanwhile, the news shocked the DeFi sector, raising questions about how security concerns might impact UNI’s near-term price performance.
Uniswap web3 wallet flaw
With the flagged flaw, fraudsters with physical access to the device could sidestep the wallet’s verification to access the mnemonic phrases stowed on the device.
Also a seed phrase, the mnemonic phrase contains around 12-24 words that owners use to access wallet assets using any device.
ScaleBit urged Unsiwap wallet users to avoid sharing devices until the blockchain thwarts the vulnerability.
Hacking trends in the crypto market
Uniswap’s vulnerability grabbed attention as it came amid surging cybersecurity threats within the crypto sector.
PeckShield’s latest report shows the digital assets industry lost over $3 billion last year due to scams.
The staggering losses underscore how crucial security is in the evolving cryptocurrency market.
Meanwhile, users should be updated and proactive to bypass these incidents.
While praised for their user-control and decentralization features, web3 wallets necessitate robust security mechanisms to alleviate risks.
UNI price outlook
Attention remained on UNI’s price performance amid the ongoing security developments.
The native coin has plummeted lately, losing 13% of its value over the past week.
While top altcoins displayed minor gains today, Uniswap maintained a bearish trajectory.
It traded at $13.04 during this writing (Coinmarketcap data)
The rising security worries and technical indicators signal more struggle for UNI.
The current price places the altcoin beneath the $13.20 support.
Renowned crypto analyst Ali Martinez believes the foothold will determine UNI’s trajectory (in the near term).
The parabolic SAR supports UNI’s bearish outlook.
At $14.90, the indicator shows the downtrend might persist unless bulls regain the support level at $13.20.
Moreover, FIB retracement levels show Uniswap must overcome the resistance at $15.90 – $17.06 to confirm a bullish resurgence.
Failure to reclaim the $13.20 foothold might catalyze declines to $12.88 in the near term.
What Uniswap’s plunging exchange reserves suggest
Data shows UNI’s exchange reserves declined over the past three days.
The 1.74% indicated weakening selling momentum, with fewer coins available on exchanges.
Nevertheless, the trend could highlight cautious sentiments, with holders refraining from active selling or buying until trading conditions improve.
While the declining exchange reserves seem slightly positive, speculations remain on whether the trend could foster stable upside momentum in the long term.
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