Rita Dfouni
- The ETH holdings of the Radiant Capital hacker increased significantly from $58 million to $103 million following a near doubling in the price of ETH.
- Analysts suggest that this substantial gain is likely attributable to enhanced asset security measures rather than intentional trading activities.
- The price of ETH is bolstered by inflows from ETFs, staking, corporate treasuries, and the growing Layer 2 ecosystem of Ethereum.
The individual responsible for the Radiant Capital exploit in October 2024, which resulted in a loss of $58 million, currently possesses an Ether reserve valued at $103 million due to the nearly doubled ETH prices.
In mid-October 2024, the decentralized lender Radiant Capital experienced a cross-chain breach, leading to a loss of $58 million across both BNB Chain and Arbitrum. Subsequently, the perpetrator converted the stolen assets into 21,957 ETH, which was valued at $103 million at the time of this report an increase from the initial $58 million as ETH traded above $4,700. At the time of the breach, ETH had closed at over $2,300.
Factors behind ETH’s price surge
The increase in ETH’s value is attributed to several factors, notably the introduction of U.S. spot ETH ETFs in late July 2024, which have garnered $12.12 billion in net inflows, as reported by CoinGlass. This accumulation and staking have led to a decrease in circulating supply, with more than 36 million ETH currently locked. Additionally, corporations possess over $100 billion in ETH within their treasuries.
The SEC’s decision in June 2024 to terminate its investigation into the classification of ETH as a security provided greater regulatory clarity. Law professor Carol Goforth observed that the dismissal implied the SEC’s uncertainty in establishing ETH’s status as a security.
The Dencun upgrade of Ethereum, which encompasses EIP-4844, has enhanced scalability and the adoption of layer-2 solutions. This week, daily layer-2 transactions reached 13.88 million, with earlier peaks exceeding 16 million, according to data from GrowThePie. This continuous growth of the network has contributed to the upward trend of ETH.
