According to CryptoQuant platform CEO and founder Ki Young Ju, Bitcoin is heading towards the longest period of sideways movement in a halving year. This and more news is in this handy daily roundup so that you are always informed with the latest events happening within the crypto world.
Bitcoin Price Sideways
📍Bitcoin is at a critical juncture as it heads into what could be the longest period of sideways trading in a halving year. According to CryptoQuant CEO Ki Young Ju, if no significant bullish move occurs in the coming days, this sideways phase could extend and surpass the previous record of 298 days.
Historically, halving years have witnessed significant increases in the BTC price. However, despite expectations, the market has not shown the usual momentum of previous years. In 2016, it took Bitcoin 161 days to begin its maximum ascent, while in 2020, it was 164 days. However, in the current context, the Bitcoin price has been trading sideways for 176 days. While this has been raising doubts in cryptocurrency investors, CryptoQuant also believes that investors should keep an eye out for possible changes in the BTC price trend.
One relevant aspect of this period of lateralization is that the price of Bitcoin has been fluctuating between $60.000 and $71.000. Analysts such as Rekt Capital have pointed out that, if the lateralization continues, this could result in a significant increase in the price of Bitcoin once the breakout occurs. This expectation is based on the performance of Bitcoin in previous years, where it can be noted that, after each halving, the cryptocurrency tends to reach new historical highs.
LayerZero launched its Cross-Chain protocol on the new Uniswap chain
📍LayerZero, a leading protocol in the cryptocurrency industry, has announced the launch of its cross-chain interoperability protocol on the Unichain testnet. This announcement, made on October 11, allows developers and partner applications from over 90 blockchain networks to access and interact with the Unichain ecosystem, representing a significant step forward for the development and evolution of the decentralized finance (DeFi) ecosystem.
The integration of LayerZero into Unichain opens up new opportunities for application developers. This protocol allows them to experiment with their existing projects on Unichain, leveraging unique features to create cross-chain solutions. Furthermore, with this launch, experts noted that cross-chain interoperability has now become a fundamental pillar for the development of decentralized applications, facilitating greater accessibility and flexibility in the DeFi ecosystem.
Unichain, the Layer2 network designed by Uniswap Labs, was recently introduced as one of the leading L2 solutions focused on improving Ethereum’s scalability. Its protocol, based on Superchain Optimism, guarantees fast transaction times of just 250 milliseconds, thanks to the support of a decentralized network of validators. The efficiency offered by this new L2 chain is crucial for users looking for fast and secure transactions in the decentralized ecosystem.
Therefore, the collaboration between LayerZero and Unichain reinforces the development of a solid blockchain framework, where the integration of both protocols promises to improve cross-chain interactions, fostering innovation and collaboration in the blockchain ecosystem.
Avalanche signs token buyback agreement with Luna Foundation Guard
📍The Avalanche Foundation has reached an agreement with the Luna Foundation Guard (LFG) to buy back all AVAX tokens that were sold to LFG in April 2022. Through X, the Avalanche Foundation reported on this agreement, which is pending approval by the Bankruptcy Court and seeks to ensure that the Luna Foundation Guard does not violate the original agreement's restrictions on the use of AVAX tokens, while also seeking to protect the assets amid the liquidation process.
The repurchase of approximately 1,97 million AVAX tokens represents a significant step for the Avalanche Foundation, the organization explained in the release, as these assets will be returned to its treasury holdings. The Foundation also noted that this move will not only ensure the security of the tokens, but will also enhance its ability to support the growth and development of the Avalanche blockchain ecosystem.
With the growing popularity of decentralized finance (DeFi), the recovery of these tokens is considered essential to strengthen the network infrastructure.
Furthermore, in addition to the agreement with the LFG, the Avalanche Foundation also reported on the approval of the proposal to redistribute refunds through Avalanche DAO. This proposal implies that up to 90% of the repurchased AVAX tokens will be airdropped to holders, which will further incentivize community participation in the blockchain ecosystem. Experts have commented that this type of initiative demonstrates the Avalanche Foundation's commitment to transparency and collaboration within its community.
CVE-2024-35202: Bitcoin Core developers disclose a new bug
📍Bitcoin Core developers have disclosed a vulnerability called CVE-2024-35202, which allows an attacker to remotely crash Bitcoin Core nodes. According to the post shared by Bitcoin Core, this bug, considered high severity, affects versions prior to Bitcoin Core v25.0, which has raised concerns in the cryptocurrency community.
The developers explained that this vulnerability originates in the logic of handling the blocktxn message, which is used to reconstruct blocks from transactions. When a node receives a block announcement via a cmpctblock message, it attempts to reconstruct the announced block using the transactions in its own mempool. If this reconstruction fails, the node requests the missing transactions from its peer via a getblocktxn message. However, if collisions occur in transaction IDs, the node may experience a failure to process the blocktxn message, leading to a crash.
Niklas Gögge, the Bitcoin Core researcher who discovered and disclosed this vulnerability, has been recognized for its contribution to network security. The fix for this bug was included in pull request #26898, which was merged on January 24, 2023, and Bitcoin Core version 25.0 was released on May 25, 2023, addressing the vulnerability.
The disclosure of CVE-2024-35202 on October 8 underscores the importance of security in the Bitcoin ecosystem. The developers called on affected nodes to upgrade to the latest version of Bitcoin Core to protect against such attacks. This disclosure also demonstrates that the Bitcoin community remains committed to constantly improving the security of its network, ensuring that users can confidently operate with cryptocurrency and blockchain.
Andre Cronje takes a stand on Layer2 blockchain solutions
📍André Cronje, an influential figure in the blockchain ecosystem, has expressed serious concerns about the viability of Layer 2 (L2) networks. Cronje shared a brief analysis on social media about the challenges these networks present for the development of the crypto ecosystem. He explained that Layer2s present limited infrastructure at the time of their implementation, which makes their adoption by blockchain developers difficult. Cronje also mentioned that the lack of a wide range of stablecoins, oracles, and institutional custody solutions becomes a significant obstacle for those looking to build decentralized applications (dApps) on these platforms.
Cronje also stressed that the absence of foundations or laboratories supporting the development of L2 networks contributes to their instability. In his opinion, this lack of institutional support not only affects the creation of new applications, but also increases the vulnerability of these networks to centralized attacks.
Liquidity fragmentation is another issue Cronje mentioned in his post, as it forces users to rely on blockchain bridges to move their assets, which can result in inefficiencies and additional risks.
Another critical point that Cronje highlighted is the high cost of the infrastructure needed to operate in the L2 environment. According to his estimates, the recurring costs associated with the creation and maintenance of these networks can amount to millions of dollars, which raises questions about the sustainability of these solutions. “In 2024 alone, this has already cost us $14 million, and a large part of that is recurring costs,” he said.
Finally, the lack of an active community of users and builders on Layer 2 networks results in an environment that is not conducive to growth, the expert commented. Without a solid foundation of support, L2 networks could face difficulties in attracting developers and users, which would limit their potential in the blockchain ecosystem.
With these words, Cronje extended an invitation to reflect on the future of these networks and the challenges they must overcome to be truly effective.
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