Cetus Protocol's (CETUS) Value Surges: Exploring the Factors behind the Price Hike
Cetus Protocol (CETUS) witnessed a substantial surge of nearly 30% today, buoyed by the announcement of a comprehensive reimbursement plan following the $223 million hack on May 22.
The current trading price of CETUS hovers around $0.1664 against a robust trading volume of $197 million. The past seven days have seen a 16.84% decline, but the token has bounced back significantly since the announcement.
In response to the hack, the protocol's team took immediate action, halting transactions, and securing $162 million of the compromised funds. Collaborating with the Sui Foundation and other ecosystem partners, they traced the stolen assets and sought support from anti-cybercrime organizations and law enforcement agencies.
Yesterday's announcement underscored a shift in market sentiment towards Cetus Protocol. The team has outlined a plan to achieve 100% recovery of the stolen funds. This recovery scheme involves utilizing treasury assets and a crucial loan from the Sui Foundation. However, the execution hinges on a forthcoming community vote to unlock the frozen funds.
With the token breaking above key resistance levels, the daily trading range spans from $0.1302 to $0.1697, while the weekly range extends from $0.1219 to $0.2455. Key support sits at $0.1302, while resistance is at $0.1697. If the current momentum continues, the token could surge past the weekly high of $0.2455 and reach higher levels. However, traders need to keep an eye on the $0.1219 support level, as a breach could signal a potential reversal.
The community vote for fund recovery, aimed at addressing the funds lost in the May 22 exploit, has concluded successfully. The vote garnered over 90% support from validators and stakers, enabling Cetus to move the frozen assets into a multi-sig wallet. Meanwhile, the Sui community has separately voted to return $162 million in frozen assets to victims of the exploit, complementing the broader recovery effort.
Despite the positive outcome of the community vote, the CETUS token has seen a decline, partly due to broader market weakness and neutral sentiment. Recovery efforts are ongoing, with the full resumption of functions, including the restoration of the CLMM contract, expected to help stabilize the token's performance over time.
Cetus has outlined an 8-point recovery roadmap, encompassing crucial steps like data restoration, upgrading the CLMM contract, and resuming LP functions. The successful completion of these steps could help rebuild user confidence and potentially stabilize or even raise the CETUS token price. However, the overall market sentiment continues to be a significant factor in determining the token's price trajectory.
Ethereum's price surged slightly today, potentially influenced by the positive news surrounding Cetus Protocol. The rise in Ethereum might be a result of investors' interest in technology solutions that address finance-related issues, like the comprehensive reimbursement plan announced by Cetus for the $223 million hack.
Following the successful community vote, Cetus is expected to move the frozen assets into a multi-sig wallet, utilizing technology to secure the funds and implement the recovery plan. The success of this plan could potentially attract more investors to Ethereum, as it showcases the blockchain's capacity to handle complex finance-oriented issues.
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