• Hedera network experienced a period of downtime due to an exploit in its Smart Contract Service code.
• Following the resumption of operations, the total value of assets locked (TVL) on DeFi protocols on Hedera has increased by 7%.
• The price of HBAR has declined by 34% in the past 20 days and is now trading at $0.05795.
Hedera Network Experiences Period of Downtime
Hedera Hashgraph suffered a major setback when an exploit in its Smart Contract Service code caused a 24-hour period of downtime. As soon as it was detected, Hedera decided to turn off mainnet proxies to prevent further theft. This resulted in a decrease in the total value of assets locked (TVL) on DeFi protocols on Hedera during this time.
Network Resumes Operations
Following several hours of downtime, Hedera resumed operations and saw an uptick in transactions per second processed on the chain. Twitter user KungensSlott complained about low transactions per second rate soon after it returned online but this issue has since been resolved with 791 transactions being processed per second at press time.
HBAR Price Plummets
Similar to the overall increase in cryptocurrencies at the start of 2021, HBAR also rose to a high of $0.088 on 20 February before experiencing a decline down to $0.05795 at press time – representing a 34% drop over 20 days according to CoinMarketCap data. A look at its Moving Average Convergence/Divergence (MACD) indicator showed that bears had taken control from bulls since 20 February, as signified by its Directional Movement Index where sellers‘ strength surpassed buyers‘.
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Conclusion
The attack that took place against Hedera’s Smart Contract Service code caused disruption within their network, resulting in decreased TVL and lower prices for HBAR tokens over recent weeks. However, following recovery operations, things are beginning to look up again with increased transaction rates and higher TVLs returning despite bearish pressures still present over HBAR’s market performance currently.