CET price crashed to $0.15, its lowest level since April 24, as concerns about the future of Cetus Protocol rose. The token has plunged by 37% from its highest point this month, making it one of the worst-performing cryptocurrencies of the period.
Fallout of the Cetus Protocol Hack Continues
Cetus Protocol token has crashed after hackers infiltrated its network and stole funds worth over $230 million in one of the biggest security incidents of the year. The team, together with Sui, managed to pause $165 million of these funds. This means that the hackers managed to steal over $60 million worth of coins.
Cetus Protocol attempted to negotiate with the hackers for a deal and offered a bounty. However, there are signs that these efforts have not been successful, as the developers noted that they were working with analytics providers and security agencies to recover the funds. This process is unlikely to bear fruit, especially when state actors like North Korea are involved.
There are concerns about whether Cetus Protocol will survive this crisis. Data shows that the total value locked (TVL) on its network has crashed to $67 million, down from $285 million earlier this week.
Other data shows that the volume on its DEX network surged by 143% in the last seven days to over $4.34 billion. The 24-hour volume was $2.6 billion, likely as many of its users capitulated and sold their tokens.
Looking ahead, the next key catalyst to watch is an upcoming community vote on Sui to recover the $165 million frozen funds and return them to their owners. In a post on the platform X, the team stated:
“We propose an on-chain vote involving the network’s major participants, including validators and SUI stakers, to decide on whether this upgrade is in the best interest of the Sui community. We want to recover and return the stolen funds.”
Historically, DEX networks typically don’t perform well after suffering a major hack since many users leave them. A good example of this is Bancor, which lost $23.5 million in a hack in 2018. At the time, it was contending to be the biggest exchange in the industry. While it still exists, Bancor has a small market share today.
CET Price Analysis
The daily chart shows that the CET price crashed from a high of $0.2500 to a low of $0.1500 this week. It is now hovering at its lowest level since April 24 and is below the 50-day moving average.
The most likely scenario is that the Cetus price continues falling, with the next level to watch being $0.10. A move above the resistance level of $0.1757 would invalidate the bearish outlook.
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