{"id":27228,"date":"2025-05-16T18:19:26","date_gmt":"2025-05-16T18:19:26","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=27228"},"modified":"2025-05-16T18:19:26","modified_gmt":"2025-05-16T18:19:26","slug":"bitcoin-breaks-out-while-coinbase-breaks-down-finance-redefined","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=27228","title":{"rendered":"Bitcoin breaks out while Coinbase breaks down: Finance Redefined"},"content":{"rendered":"
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\"Bitcoin<\/p>\n

News broke on May 15 that Coinbase was the target of a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data for social engineering scams.<\/p>\n

While less than 1% of Coinbase\u2019s active monthly users were reportedly affected, the expected remediation and reimbursement expenses range from $180 million to $400 million, as the exchange pledged to repay all phishing attack victims.<\/p>\n

Despite the attack on the world\u2019s third-largest cryptocurrency exchange, investor sentiment remains optimistic, with the Fear & Greed Index remaining firmly in the \u201cGreed\u201d zone above 69, according to CoinMarketCap data<\/a>.<\/p>\n

\"Bitcoin
Fear & Greed Index, 30-day chart. Source: CoinMarketCap<\/em><\/figcaption><\/figure>\n

Adding to investor optimism, Coinbase saw over $1 billion worth of Bitcoin withdrawn on May 9, marking the highest net outflow recorded in 2025 so far, triggering analyst predictions of a supply-shock driven Bitcoin rally.<\/p>\n

Coinbase faces $400 million bill after insider phishing attack<\/h2>\n

Coinbase was hit by a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data, the company said on May 15.<\/p>\n

Coinbase said a group of external actors bribed and coordinated with several customer support contractors to access internal systems and steal limited user account data.<\/p>\n

\u201cThese insiders abused their access to customer support systems to steal the account data for a small subset of customers,\u201d Coinbase said, adding that no passwords, private keys, funds or Coinbase Prime accounts were affected.<\/p>\n

Less than 1% of Coinbase\u2019s monthly transacting users\u2019 data was affected by the attack, the company said.<\/p>\n

\"Bitcoin
Source: <\/em>Coinbase<\/em><\/a><\/figcaption><\/figure>\n

After stealing the data, the attackers attempted to extort $20 million worth of Bitcoin (BTC<\/a>) from Coinbase in exchange for not disclosing the breach. Coinbase refused the demand.<\/p>\n

Instead, the company offered a $20 million reward for information leading to the arrest and conviction of those responsible for the scheme.<\/p>\n

Continue reading<\/strong><\/a><\/p>\n

$1 billion Bitcoin exits Coinbase in a day as analysts warn of supply shock<\/h2>\n

Institutional demand for Bitcoin is growing, as Coinbase, the world\u2019s third-largest cryptocurrency exchange, recorded its highest daily outflows of Bitcoin in 2025 on May 9.<\/p>\n

On May 9, Coinbase saw 9,739 Bitcoin, worth more than $1 billion, withdrawn from the exchange, the highest net outflow recorded in 2025, according to Bitwise head of European research Andr\u00e9 Dragosch.<\/p>\n

\u201cInstitutional appetite for Bitcoin is accelerating,\u201d Dragosch added in a May 13 X post<\/a>.<\/p>\n

\"Bitcoin
Source: Andr\u00e9 <\/em>Dragosch<\/em><\/a><\/figcaption><\/figure>\n

The outflow occurred as Bitcoin traded above $103,600 and just days after the White House announced a 90-day reduction in reciprocal tariffs between the US and China, easing market concerns and lifting broader investor sentiment.<\/p>\n

\"Bitcoin
Joint statement on US-China meeting in Geneva. Source: The White House<\/em><\/figcaption><\/figure>\n

The 90-day suspension of additional tariffs removed the risk of \u201csudden re-escalation,\u201d which may help Bitcoin, altcoins<\/a> and the wider stock market rally due to improved risk appetite, Nansen\u2019s principal research analyst, Aurelie Barthere, told Cointelegraph.<\/p>\n

Continue reading<\/strong><\/a><\/p>\n

DeFi lender Aave reaches $40 billion in value locked onchain<\/h2>\n

Aave, a decentralized finance (DeFi) protocol, has reached a new record of funds onchain, according to data from DefiLlama.<\/p>\n

In an X post<\/a>, Aave said it topped $40.3 billion in total value locked (TVL) on May 12. Onchain data reveals<\/a> that Aave v3, the latest version of the protocol, has about $40 billion in TVL.<\/p>\n

Aave is a DeFi lending protocol that lets users borrow cryptocurrency by depositing other types of cryptocurrency as collateral. Meanwhile, lenders earn yield from borrowers.\u00a0<\/p>\n

\u201cWith these milestones, Aave is proving its dominance in the Lending Space,\u201d DeFi analyst Jonaso said in a May 12 X post<\/a>. TVL represents the total value of cryptocurrency deposited into a protocol\u2019s smart contracts.\u00a0<\/p>\n

\"Bitcoin
Aave v3\u2019s TVL over time. Source: DefiLlama<\/em><\/figcaption><\/figure>\n

Continue reading<\/strong><\/a><\/p>\n

SEC delays Solana ETF as decisions for Polkadot, XRP loom<\/h2>\n

The US Securities and Exchange Commission (SEC) pushed back its decision on a proposed spot Solana exchange-traded fund (ETF), with the cryptocurrency industry now looking to the deadlines for the Polkadot and XRP-based ETFs in June.<\/p>\n

The SEC delayed its decision on listing Grayscale\u2019s spot Solana (SOL)<\/a> Trust ETF on the New York Stock Exchange (NYSE) to October 2025, according to a May 13 filing<\/a> by the securities regulator.<\/p>\n

\"Bitcoin
Delay on Grayscale\u2019s Solana ETF. Source: <\/em>SEC<\/em><\/a><\/figcaption><\/figure>\n

The decision came the week after the SEC delayed its ruling on Canary Capital\u2019s Litecoin (LTC)<\/a> ETF, Bloomberg Intelligence analyst James Seyffart wrote in a May 5 X post<\/a>.<\/p>\n

\"Bitcoin
Source: James <\/em>Seyffart<\/em><\/a><\/figcaption><\/figure>\n

Spot ETFs are key drivers of liquidity and institutional adoption for digital assets. For Bitcoin, the US spot Bitcoin ETFs accounted for an estimated 75% of new investment<\/a> after launching, which helped BTC recapture the $50,000 mark in February 2024, a month after the ETFs debuted for trading.<\/p>\n

While a Solana ETF may<\/a> generate only a fraction of the inflows of Bitcoin ETFs, it could increase Solana\u2019s institutional adoption in the long term by offering investors a \u201cregulated investment vehicle\u201d that may still attract billions of dollars in capital, Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.<\/p>\n

Continue reading<\/strong><\/a><\/p>\n

Starknet hits \u201cStage 1\u201d decentralization, tops ZK-rollups for value locked<\/h2>\n

Ethereum layer-2 scaling platform Starknet has reached a decentralization milestone laid out by Ethereum co-founder Vitalik Buterin and is now the largest zero-knowledge rollup-based network by total value locked.<\/p>\n

Starknet said in a news release shared with Cointelegraph that it has hit \u201cStage 1\u201d decentralization, according to a framework<\/a> Buterin laid out in 2022, which means the network operates with limited oversight or \u201ctraining wheels.\u201d<\/p>\n

Starknet added that the framework was the \u201cgold standard onchain tool for analyzing Ethereum scaling solutions,\u201d and said it achieved the milestone through changes such as creating a security council and censorship-avoidance mechanisms.\u00a0<\/p>\n

While the system still allows intervention from a security council, it has implemented a fully functional validity proof system governed by smart contracts.<\/p>\n

Starknet is now the only layer-2 ZK-rollup network to have reached Stage 1 and has grown to be the largest ZK-rollup blockchain with a total value locked of $629 million, just ahead of ZKsync\u2019s $610 million, according<\/a> to L2beat.\u00a0<\/p>\n

Starknet is the fifth-largest layer-2 network<\/a> by value locked, with the top four all Optimistic rollup-based, having reached Stage 1 decentralization using fraud proofs.\u00a0<\/p>\n

Continue reading<\/strong><\/a><\/p>\n

DeFi market overview<\/h3>\n

According to data from Cointelegraph Markets Pro<\/a> and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.<\/p>\n

Solana-based memecoin Dogwifhat (WIF<\/a>) rose over 43% as the week\u2019s biggest gainer, followed by decentralized exchange Raydium\u2019s (RAY<\/a>) token, up nearly 19% over the past week.<\/p>\n

\"Bitcoin
Total value locked in DeFi. Source: DefiLlama<\/em><\/figcaption><\/figure>\n

Thanks for reading our summary of this week\u2019s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.<\/p>\n