Crypto Market Growth Continues Despite Increase in Hacking Incidents: DailyCoin Report

A recent report from DappRadar has revealed that despite the frequent hacks permeating the cryptocurrency space in October, the market has maintained its growth, registering a total market capitalization exceeding $1 trillion at the time of writing.

Since October 25, when the market turned bullish after months of bearish sentiment, the cryptocurrency sector has roared back into action, regaining the $1 trillion level in terms of total market capitalization. Cryptocurrencies across the board, including leaders (BTC) and (ETH), have seen daily gains, with the bears seemingly put in place.

In October, blockchain dApps recorded an average of 2.01 million daily unique active wallets (UAW), representing a 6.84% increase from the previous month. The calculation shows the market’s continued strength and resilience in the face of a troubled global economy.

An increase in crypto-related hacks

The positive development comes despite the market’s recent loss of security. According to the DEFIYIELD database of DeFi scams, hacks and exploits, October saw the largest volume of lost funds since the start of 2022, as the many instances of security breaches resulted in the theft of approximately $1.09 billion worth of cryptocurrency assets.

Cybercriminals seem to favor cross-chain bridges as their targets, with such protocols accounting for 82% of October’s losses. Francisco Valdevino da Silva, commonly known as the “Bitcoin Sheikh,” suffered the biggest attack of the month, with the offender stealing and laundering approximately $766 million from thousands of Brazilians, as well as citizens of at least 10 other nations.

NFTs are heating up for crypto winter

The DappRadar report further noted that while October saw a clear drop in NFT trading volume and sales, the number of individual non-fungible tokens (NFT) traders has steadily increased, rising 18%.

NFT trading volume fell 30% month-over-month to $662 million in October, marking a new low for the year. Furthermore, the number of transactions registered since September has decreased by 30%. Despite the sectors reducing overall trading volume, the number of individual traders increased by 18% to 1.11 million.

The increase in the number of unique NFT traders can be attributed in part to the influx of newcomers to the crpyto space, suggesting that NFTs remain sought after by both novice and experienced traders. Later in the report, it was noted that seven Yuga Labs projects experienced an increase in sales volume in October, securing its spot as one of the top NFT projects overall.

On the other side

• The unexpected market recovery did not come without a cost, as nearly $1.2 billion worth of short positions were liquidated on the first day of the market’s rally.

Why you should care

The prolonged crypto bear market appears to have come to an end in October, as the market climbed back above $1 trillion by market cap. Hope seems to be resurgent among investors, even despite 2022 witnessing the peak value of stolen crypto assets. With major companies such as Visa (NYSE: ), PayPal (NASDAQ: ), and Western Union (NYSE: ) filing for trademarks in an effort to increase their crypto presence, DappRadar predicts that the market will continue its bull run, which may even prove to be more intense than previous rallies.

Read more about some of October’s biggest DeFi hacks:

DeFi Hack Season Continues as TempleDAO (TEMPLE) and Mango Markets (MNGO) Lose Over $100M

Read more about how different generations view crypto:

A significant portion of Gen Z and Millennials prefer to invest in Bitcoin and Crypto: Study

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