| Hey Cryptonews, here's our curated daily bundle of crypto news. | | Bitcoin: Daily inscriptions surge to 200k as network activity rebounds |  | Bitcoin's network activity noted a rebound following a recent slump. The rebound was driven by increased interest in inscriptions and rising number of holders.
Dune Analytics' data revealed that the number of daily inscriptions experienced a significant increase from 150,000 to 200,000 over the last few days. Coupled with the increasing interest in Inscriptions, the number of non-zero addresses reached an all-time high on 28 May.
However, some cautionary signs emerged. Notably, the MVRV ratio of Bitcoin declined, suggesting that Bitcoin holders were becoming less profitable. Moreover, the long/short difference of BTC has been decreasing, indicating that the number of new addresses were outnumbering the old addresses.
The overall number of long positions for BTC has witnessed a significant increase in recent days, indicating a growing bullish sentiment among investors. Well, one reason for the spike could be the declining Implied Volatility of the cryptocurrency. | | | Learn More | | Ethereum: L2 data fee records an all-time high figure |  | The hike in fees denotes a 5x increase from the value when the year began Among all L2 projects, Arbitrum remains the one with the most market share
The Ethereum blockchain has begun reaping the fruits of underlying L2 solutions under its Mainnet. As a result, the L2 data fees on Ethereum reached an All-Time High (ATH), denoting a 5x increase from the value when the year began.
While both optimistic rollups and Zero-Knowdedge rollups contributed to the milestone, Arbtirum did more than their ZK counterparts. It remains the one with the most market share. For the month of May, Arbitum contributed a whopping 47.3% of the total of $16.2 million registered. The rise in the data fees indicates the growing adoption and utilization of these networks.
Meanwhile, Polygon zkEVM saw a noteworthy observation from the publishing fees record. Despite the hype around its launch in Beta, the project seems to have taken only 1.03% of the fees. This decline has also extended to its Total Value Locked (TVL) performance - it was far below its major competitors at $13.27 million. | | Learn More | | Litecoin registers pullback prior to halving |  | Litecoin experienced a noteworthy pullback last week, which threatened to wipe out gains LTC bulls delivered a 7% upside, aided by whale activity, despite low investor sentiment
However, the bulls took over after a brief interaction with LTC's 200-day moving average, and the token was up by 7% in the last four days until press time - aided by whale activity. It traded at $89.49.
Interestingly, Litecoin's on-chain volume fell drastically within those four days despite the rally. Investor confidence also fell substantially during the same 4-day period, as revealed by the weighted sentiment metric, which was at a weekly low at press time.
Litecoin will likely observe increased attention in the next eight weeks because of the upcoming halving scheduled to take place in August. Its short-term performance has been quite interesting. It experienced a noteworthy pullback last week, which threatened to wipe out previous gains and attempt another ascending support retest. | | Learn More | | Binance returns to the Japanese market
|  | Binance is returning to the Japanese market after a five-year absence by establishing a regulated subsidiary. This follows their acquisition of Sakura Exchange Bitcoin (SEBC) in November 2022.
As part of the deal, SEBC will close its services by 31 May and reopen as Binance Japan soon. Users in Japan will need to register with the new entity, with migration options available from 1 August, 2023, including a new identity verification process to meet local regulations.
In addition, SEBC exchange users will have their remaining funds converted to Japanese yen and transferred to their bank accounts from June. As per a notice on Binance's website, the exchange will not provide derivative services in Japan, its global version will not accept new derivative accounts from users in the country.
Binance's strategy for expanding its global reach by acquiring locally-regulated entities has been prompted by the narrowing regulatory landscape. Notably, the exchange made similar moves in Singapore, Malaysia, and Thailand previously.
| | Tornado Cash governance control set to be restored as voters approve proposal |  | The proposal was put forward by an attacker, enabling the community to guide recovery and security A total of 517,000 token votes favored the proposal, with none opposing it
Tornado Cash's governance tokenholders will regain control of the protocol's operations due to an unexpected proposal put forward by an attacker, enabling the community to guide recovery and security. On 26 May, the proposal passed with 517,000 votes in favor, concluding the governance takeover that did not impact the protocol but involved theft of governance tokens.
The attacker successfully orchestrated a takeover of the protocol's governance system. Maneuvering a malicious proposal, they gained 1.2 million votes and passed additional proposals ultimately seizing control over vested governance tokens.
The attackers tactics allowed them to manipulate the governance structure, leading to a transfer of authority in their favor. However, shortly after the hack the attacker reached out to the Tornado Cash community with a proposal to restore governance control, sparking curiosity and prompting scrutiny of their intentions.
Reportedly, the attacker stole 483,000 Tornado Cash (TORN) tokens and converted most of them into 485 Ether worth around $890,000. They retained 39,000 TORN worth approximately $160,000 and used Tornado Cash to obscure the funds' origin, enhancing anonymity.
| | Arbitrum-based Jimbos Protocol suffers $7.5M hack |  | The absence of slippage control on liquidity conversions allowed the attacker to reverse swap orders for personal benefit As a result of the hack, the JIMBO token plummeted by 40%
DeFi platform Jimbos Protocol — the liquidity protocol of the Arbitrum system, was hacked on 28 May resulting in the loss of 4,000 Ether (ETH) valued at around $7.5 million, according to blockchain security firm PeckShield. With this, Jimbos was the latest addition to the increasing list of DeFi protocol breaches.
The protocol, which aimed to address liquidity and volatile token prices, was launched less than 20 days ago but had inadequate development, leading to a logical vulnerability. Specifically, the absence of slippage control on liquidity conversions allowed the attacker to reverse swap orders for personal benefit, resulting in the price of the JIMBO token to drop by 40%.
Here it is noteworthy that DeFi protocol hacks remain a recurring issue, although the frequency has decreased. In addition, the persistent challenge of safeguarding against potential vulnerabilities and unauthorized access make the DeFi community susceptible to exploits, despite ongoing efforts to bolster security. | | Beijing unveils white paper to drive Web3 innovation and development |  | Beijing's commission has committed to allocating $14 million annually until 2025 The aforementioned, to establish the city as a major global innovation center for the digital economy
Beijing's municipal government recently released the "Web3 Innovation and Development White Paper" at the Zhongguancun Forum. The paper acknowledges Web3 as a crucial component for future internet industry progress and emphasizes the city's commitment to fostering innovation in the Web3 industry.
With the goal of establishing the city as a major global innovation center for the digital economy, the commission has committed to allocating at least 100 million yuan ($14 million) annually until 2025. The funding was announced by Yang Hongfu, director of the Zhongguancun Chaoyang Park management committee, at the forum, emphasizing Zhongguancun's reputation as China's Silicon Valley.
The white paper reportedly underscores Beijing's focus on policy support and technological progress to promote Web3 industry development. In a comment, Binance CEO Changpeng Zhao said that the timing of the white paper release is "noteworthy," highlighting that Hong Kong's cryptocurrency regulations are set to commence on 1 June.
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