'Liquidity Crisis': $12B in DeFi Liquidity Sits Idle as 95% of Capital Goes Unused

Bitcoin's price has shown signs of stabilization around $90,000 despite significant outflows from exchange-traded funds (ETFs) and ongoing rate repricing by the Federal Reserve, reflecting a complex market environment. Recent fluctuations have highlighted the cryptocurrency's resilience amid pressures from market volatility.

Bitcoin's recent price drop has brought Michael Saylor's company, Strategy, to a near breakeven point, raising concerns about its financial stability as it navigates a volatile market. The company has made significant investments in Bitcoin, including a recent purchase of 8,178 BTC for approximately $835 million, despite the cryptocurrency's declining value.

XRP has experienced a significant decline, dropping to $1.81, its lowest price since April, as Bitcoin's weakness continues to exert downward pressure on altcoins. Technical indicators suggest that XRP is oversold, but a recovery requires a break above the $1.96 level to reverse the current trend.

Institutional investors in Bitcoin (BTC) are considering bitcoin-native yield, collateral, and liquidity opportunities as potential strategic shifts amidst increasing pressure on decentralized autonomous organizations (DATs). This exploration could lead to new avenues for investment and risk management in the cryptocurrency space.

Coinbase has announced plans to introduce 24/7 trading for various altcoins, including SHIB, Bitcoin Cash, and Dogecoin, alongside U.S. perpetual-style futures that will settle on a five-year expiry. This move is part of Coinbase's strategy to enhance its trading offerings and attract a broader user base.

A hobbyist miner has achieved a remarkable feat by winning a Bitcoin block worth approximately $265,000, despite controlling only 0.0000007% of the total network hashpower, which recently reached a record 855.7 exahashes per second. This victory highlights the unpredictable nature of cryptocurrency mining, where even those with minimal resources can achieve significant success.

The decentralized finance (DeFi) sector has suffered a significant downturn, with approximately $60 billion lost in November alone, highlighting the volatility and instability within the cryptocurrency market. This decline is exacerbated by a liquidity crisis, where $12 billion in DeFi liquidity remains idle, with 95% of capital going unused.

Aerodrome Finance has been targeted by a 'front-end' attack, prompting the company to advise users to steer clear of its main domain. Although the underlying smart contracts remain secure, the attack has raised concerns about the safety of accessing the platform through compromised domains.