CoinSignals

The second quarter of 2026 has become the worst quarter on record for crypto related exploits, with hacking incidents reaching unprecedented levels. Despite the sharp rise in attacks, two major breaches accounted for most of the total losses.

According to a recent report from CryptoRank, DeFi platforms have suffered 121 hacks so far in 2026, leading to total losses of approximately $942 million.

The second quarter alone accounted for 85 of those incidents and roughly $775 million in stolen funds, making it the most exploit heavy quarter in crypto history.

This surge in attacks comes during a broader market downturn, as investor confidence in the crypto sector continues to weaken. Total value locked across DeFi protocols has declined every month this year, falling from around $115 billion in January to roughly $70 billion by late June.

Drift Protocol and KelpDAO Drove Most of Q2 Losses

According to CryptoRank, the 85 exploits recorded in Q2 were 49 more than the previous highest quarterly total, which was recorded in Q1 2026.

Even so, overall losses in dollar terms did not surpass earlier historical peaks, largely because two major attacks in April were responsible for most of the quarter’s damage.

Drift Protocol and KelpDAO suffered combined losses of around $590 million, accounting for well over half of all DeFi losses recorded this year.

Drift Protocol reported that attackers stole approximately $285 million in user assets. Investigations by TRM Labs linked the attack to hacking groups associated with North Korea.

According to TRM Labs, preparations for the exploit began on chain as early as March 11, beginning with a 10 ETH withdrawal from Tornado Cash.

The firm stated that the attackers used social engineering tactics to manipulate security council multisig signers into approving transactions that appeared routine but secretly authorized critical administrative actions.

Just over two weeks later, North Korea’s Lazarus Group exploited KelpDAO through weaknesses in its LayerZero bridge infrastructure, stealing approximately $290 million worth of rsETH.

At the time, Chainalysis reported that attackers forged a cross chain message after compromising two remote procedure call nodes used by LayerZero’s decentralized verifier network.

The attackers also launched a distributed denial of service attack against a third node, forcing the system to rely on compromised validators.

This manipulation enabled the fraudulent minting of rsETH tokens on Ethereum without properly burning the corresponding assets on the source chain.

The fallout was immediate. Within days of the breach, Aave saw its total value locked drop from $26.4 billion to $14.3 billion, representing nearly $12 billion in withdrawals and a decline of about 46 percent.

Shrinking Market Conditions Added More Pressure

Security breaches were only part of the problem. The broader DeFi market has also been steadily contracting.

Data from CryptoRank shows total DeFi value locked declined every month in 2026, dropping from $115.3 billion in January to just over $70 billion in June.

While hacks were not the sole reason behind this decline, the increasing frequency of exploits likely weakened user confidence and accelerated capital rotation away from the sector.

Even so, the current downturn has been less severe than the collapse seen during the 2021 to 2022 cycle, when DeFi TVL fell more than 70 percent within seven months.

According to CryptoQuant, the current market structure is also significantly different. Stablecoin supply has expanded to nearly $300 billion, real world asset tokenization has grown rapidly, and capital is now spread across multiple sectors such as derivatives, infrastructure, and lending rather than being concentrated in AMMs and yield farming protocols.

Among the largest blockchain ecosystems by TVL, only Tron and Hyperliquid have posted growth in 2026.

Tron has gained roughly 5 percent, while Hyperliquid has risen nearly 7 percent, driven largely by its dominance in on chain perpetual trading.

Most of the top 10 ecosystems remain deeply in negative territory. The worst performers have been Plasma and Arbitrum, whose TVL has dropped by 74.6 percent and 55 percent respectively.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

With fear dominating sentiment around XRP, some investors are beginning to ask whether this extreme pessimism could set the stage for an unexpected rebound.

The past few months have been especially difficult for XRP. Since reaching a new all time high in mid July 2025, the asset has been in a prolonged downtrend, losing more than 70 percent of its value and falling toward the $1.00 level.

During this decline, XRP also lost ranking in market capitalization, falling behind BB and USD Coin, while recording six straight months of negative performance at one stage.

As market conditions worsened, many analysts turned increasingly bearish on the asset.

Several market observers believe XRP is approaching one of its most critical moments in this cycle. Analyst Ali Martinez warned that if the $1.00 support level breaks, the next major downside targets could be $0.80, $0.62, or even $0.51.

Meanwhile, Glassnode reported that XRP holders are continuing to realize more losses than profits, a sign that selling pressure remains elevated even among investors already underwater.

Despite the growing pessimism, extreme bearish sentiment can sometimes create the conditions for a reversal.

Could XRP Be Positioning for a Recovery?

Market history shows that widespread consensus does not always lead to expected outcomes.

As Warren Buffett famously said, investors should be fearful when others are greedy and greedy when others are fearful.

Across crypto markets, major turning points have often emerged during periods of maximum pessimism. Bitcoin, Ethereum, and XRP have all experienced sharp sentiment collapses before staging strong recoveries.

This usually happens after weaker hands exit the market while long term investors quietly accumulate positions.

In XRP’s case, part of that accumulation may be coming from ETF investors. Funds tracking XRP have recorded eight consecutive weeks of net inflows, even as Bitcoin and Ethereum ETFs continue to face heavy outflows.

The recent correction has also pushed several technical and on chain indicators into historically oversold territory.

Some analysts believe XRP may now be entering a zone where the risk to reward ratio becomes more attractive, even if short term volatility remains high.

History also offers some support for a potential rebound. In mid June, XRP sentiment dropped to similarly bearish levels before the asset surged by double digits within just 24 hours. Santiment linked that rally to deteriorating investor sentiment, suggesting excessive fear may have created a buying opportunity.

July Has Historically Favored XRP

Current data suggests XRP is on track to close June with a decline of more than 20 percent, marking its weakest monthly performance since February 2025.

Data from CryptoRank indicates that June has historically been a challenging month for XRP, with bearish performance appearing more often than not.

July, however, tells a very different story.

XRP has closed each of the last six Julys in positive territory, delivering strong gains in most cases. Five of those six years produced double digit returns, including major rallies of more than 45 percent in both 2020 and 2023.

The median return for July stands at nearly 11 percent, making it one of XRP’s strongest historical months.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Bitcoin has remained relatively steady around the $60,000 mark over the weekend, despite renewed conflict in the Middle East and fresh tensions between the United States and Iran.

Most altcoins posted modest losses over the past 24 hours, with Zcash recording the sharpest decline among larger-cap assets. Aave also faced renewed selling pressure, slipping below $90 after a strong correction.

Bitcoin Stabilizes Around $60K

The week started positively for Bitcoin as it climbed to $65,500 after reclaiming support near $64,000 over the weekend.

That momentum faded quickly as selling pressure intensified throughout the week. Initially, bears pushed BTC below $62,400, and continued declines eventually dragged the asset to fresh multi-year lows.

By Wednesday, growing fear surrounding Strategy added further pressure, sending Bitcoin down to $59,000. A brief recovery to $62,000 on Thursday offered some relief, but it was short lived.

BTC then suffered another sharp drop, falling to $58,000, its lowest level since late 2024.

Buyers eventually stepped back in at these lower levels, preventing further downside. Since then, Bitcoin has recovered by roughly $2,000 and has traded close to $60,000 for most of the past 36 hours.

This relative stability is notable considering the renewed geopolitical uncertainty, with the United States and Iran exchanging accusations and military actions following the collapse of a ceasefire.

Bitcoin’s market capitalization remains above $1.2 trillion, while its market dominance has climbed back toward 56 percent.

Altcoins Mixed as ZEC and M Slide

Although most altcoins are trading in negative territory today, their losses remain relatively mild compared with the heavy selloff seen earlier in the week.

Ethereum continues to trade just below $1,600, while XRP is near $1.05. Solana remains above $70, and Hyperliquid is trading around $63.

Dogecoin has declined by more than 2 percent, while Zcash posted the steepest loss among larger-cap altcoins, falling to around $385.

Aave has also surrendered much of yesterday’s gains and is now back below $90.

Meanwhile, M continues its downward trend, dropping another 13 percent to around $0.68.

On the positive side, VELVET surged more than 30 percent, pushing it into the top 100 cryptocurrencies by market capitalization. PUMP also posted strong gains with a 15 percent rally.

The total cryptocurrency market capitalization has declined by roughly $20 billion over the past day and now sits below $2.16 trillion.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Retail investors appear to be redirecting their money into a different sector as both Bitcoin and gold continue to lose momentum.

Bitcoin has remained under significant pressure since the start of the year, falling below $60,000 for the first time since late 2024. ETFs tracking the asset have recorded losses exceeding $8 billion in recent weeks.

Gold followed a similar pattern. After starting the year strongly and reaching a new all time high, the precious metal has since reversed course and moved into negative territory. This raises an important question: where is investor capital flowing now?

Capital Is Leaving Bitcoin and Gold

Outflows from spot Bitcoin ETFs began in November following the sharp $19 billion market decline in October. Investors withdrew $3.5 billion in November, with heavy withdrawals continuing through December and January.

Conditions improved temporarily in March and April, when the funds posted net inflows of $1.32 billion and $1.97 billion respectively.

However, sentiment weakened again in May, leading to $2.43 billion in withdrawals. June is now on track to become the worst month for outflows, with withdrawals already exceeding $4 billion.

Total cumulative inflows into Bitcoin ETFs have fallen from a record $61.19 billion in October to $51.61 billion as of last week, reflecting a decline of nearly $10 billion. Around $8 billion of that reduction occurred within the last seven weeks alone.

Gold has experienced a comparable trend. ETFs tied to the metal attracted strong inflows early in the year during its rally to record highs, but momentum has since faded.

According to data from The Kobeissi Letter, ETFs tracking both Bitcoin and gold have seen a combined $12 billion in cumulative outflows since April.

The analysts noted that GLD, the largest US gold backed ETF, has declined 13 percent since early April, while IBIT, the largest Bitcoin ETF, has fallen 12 percent during the same period.

Investor Money Is Moving Into Semiconductors

Not all asset classes have suffered outflows. In fact, broader ETF markets remain strong.

Data from The Kobeissi Letter shows that US listed ETFs have attracted more than $1 trillion in net inflows in 2026 and are on pace to set a new annual record.

A major beneficiary of this capital rotation has been the semiconductor sector.

Semiconductor ETFs have attracted roughly $20 billion in inflows during the same period that Bitcoin and gold funds lost $12 billion. This shift accelerated in mid May and continued through June.

The strongest performers have been SOXX and SMH.

Over the same period that GLD and IBIT declined by 13 percent and 12 percent, SOXX and SMH surged by 81 percent and 60 percent respectively, highlighting a clear shift in investor preference toward semiconductor related investments.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Thursday marked a standout day for spot ETFs tied to Hyperliquid, delivering one of the strongest performances for the funds to date.

The gap in ETF investor sentiment toward major cryptocurrencies remains clear. Over the past week, Bitcoin funds recorded significant outflows, while ETFs linked to Hyperliquid and XRP continued to attract steady inflows.

Meanwhile, Solana reversed course after last week’s gains, ending the week in negative territory.

XRP and HYPE Maintain Strong ETF Demand

As previously reported by CryptoPotato, spot ETFs tracking Hyperliquid, XRP, and Solana recently stood out by attracting strong capital inflows despite weakness in the broader ETF market. That trend continued for two of the three assets over the past week, with one trading session proving especially strong for HYPE.

Data from SoSoValue shows that Thursday delivered more than $108 million in net inflows for HYPE ETFs, making it their strongest single day on record. Combined with smaller inflows of $1.46 million on Tuesday and $1.82 million on Friday, total weekly inflows reached $111.36 million.

This also marked a new weekly record, surpassing the previous high of $72.38 million recorded during the funds’ second week of trading.

Spot XRP ETFs also posted a solid week, though their gains were far below HYPE’s Thursday surge. The funds attracted $15.63 million on Friday, building on inflows of $5.31 million on Monday and $2.05 million on Wednesday. With no net movement on Tuesday and Thursday, total weekly inflows reached $23 million, their strongest weekly performance in roughly six weeks.

Cumulative net inflows for XRP ETFs have now climbed to a record $1.47 billion. In addition, both XRP and HYPE ETFs have maintained uninterrupted weekly inflow streaks, extending to eight and seven consecutive weeks respectively.

SOL Joins BTC and ETH in Negative Territory

While HYPE and XRP ETFs continued to perform strongly, Solana ETFs moved into the red with $3.8 million in net outflows, aligning with the broader trend seen in the largest crypto ETF markets.

Spot Bitcoin ETFs experienced another difficult week, with nearly $1.8 billion withdrawn from the funds. This marked their second worst weekly performance in the past two and a half years.

Spot Ethereum ETFs also saw significant outflows, with more than $273 million leaving the funds during the same period.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Fewer investors are taking part in crypto funding rounds as macroeconomic uncertainty and growing competition for capital continue to pressure venture markets.

Crypto venture activity continued to decline in 2026, with investor participation dropping sharply from the highs seen during the previous market cycle.

According to recent findings from CryptoRank, the number of unique investors involved in crypto funding fell to 651 in the second quarter of 2026. This marks a steep decline from the all time high of 2,564 investors recorded in 2022.

Crypto Funding Boom Continues to Slow

The data shows that investor participation was only lower in 2020, when the number of active investors per quarter ranged between 250 and 450. CryptoRank noted that this decline suggests the venture market is becoming more concentrated, with capital increasingly controlled by a smaller group of specialized investors.

Monthly figures also highlighted weak and inconsistent investor activity over the past year. The number of unique investors stood at 436 in September 2025 and rose slightly to 451 in October before falling to 316 in November.

Investor participation recovered modestly to 354 in December but dropped again to 273 in January and 224 in February.

March recorded a temporary rebound to 389 investors, but the recovery was short lived as participation declined again to 229 in April.

Participation improved to 314 in May before falling to 222 in June, marking the lowest monthly level during the period.

Rising Competition for Investor Capital

These findings align with earlier research from Galaxy Research, which reported a slowdown in crypto venture activity. The firm noted that crypto venture capital invested roughly $4 billion across 355 blockchain and crypto deals during the first quarter of 2026. This represented a 50 percent drop in invested capital compared with the previous quarter, along with a 16 percent decline in deal volume.

Galaxy Research attributed the slowdown mainly to the lack of large late stage funding rounds that had supported market activity in late 2025, although early stage and seed funding remained relatively stable.

The report also found that later stage startups accounted for 57 percent of total invested capital during the quarter, while larger and more established companies continued to attract a significant share of funding.

At the same time, fundraising conditions remained difficult. Venture firms faced continued macroeconomic pressure, lingering effects from the crypto market downturn, rising investor interest in artificial intelligence, and stronger competition from spot crypto ETFs and digital asset treasury companies.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

BitGo is reducing its workforce by nearly 15% as the digital asset infrastructure company sharpens its focus on stablecoins, trading, security, settlement services, and AI driven infrastructure.

The company said the layoffs are a one time restructuring move, with no additional workforce reductions currently planned.

Strategic Shift Toward Core Growth Areas

Mike Belshe, BitGo’s co founder and CEO, said the decision reflects major changes in both the financial services and crypto sectors.

According to Belshe, the evolving market environment requires BitGo to operate with greater focus and a more deliberate strategy.

He explained that the workforce reduction is intended to help the company allocate talent and resources toward the business areas considered most critical for long term growth and client demand.

Belshe acknowledged that the decision was difficult and expressed appreciation for employees who contributed to building the company.

He noted that affected employees would be informed directly by their managers and human resources teams before the announcement became public.

Addressing the remaining staff, Belshe encouraged employees to support one another and maintain strong communication throughout the transition.

He also emphasized that this restructuring is intended as a one time action, adding that BitGo does not currently expect further layoffs.

In his message, Belshe thanked departing employees for their contributions and said their work played an important role in shaping BitGo’s growth and success.

He also reassured the remaining team that the company has a clear and confident path forward despite the difficult changes.

AI and Market Pressure Continue to Reshape Crypto Firms

BitGo’s workforce reduction comes as layoffs continue across the crypto industry this year.

Many companies have pointed to weaker market conditions, cost discipline, and the growing adoption of artificial intelligence as major reasons behind workforce cuts.

AI tools have improved operational efficiency, allowing companies to accomplish more with leaner teams.

Coinbase reduced its workforce by roughly 14% in May.

Brian Armstrong said the decision was driven not only by market conditions and cost management but also by the increasing efficiency gains from AI tools.

Similarly, Gemini cut around 30% of its workforce in March.

During the same period, Crypto.com also reduced staff by 12%, reflecting broader restructuring efforts across the crypto sector as firms adapt to changing market dynamics.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Brad Garlinghouse has joined the growing discussion surrounding Michael Saylor, Strategy, and the company’s influence on the broader cryptocurrency market.

According to the Ripple CEO, Strategy’s approach to Bitcoin has placed too much emphasis on financial products rather than the asset’s core strengths and real world utility, creating additional pressure across the crypto market.

Speaking in a recent interview with CNBC, Garlinghouse stressed that the long term value of any digital asset comes from utility and practical use cases, not from speculative investment vehicles designed purely to accumulate holdings.

Concerns Over Strategy’s Market Impact

Garlinghouse said Strategy’s aggressive Bitcoin accumulation added momentum during the market’s rise, but is now amplifying downside pressure during the correction.

He specifically pointed to STRC, Strategy’s Stretch stock product, which raises capital by offering high yields and using the proceeds to purchase more Bitcoin.

Although Saylor has avoided labeling this approach as leverage, Garlinghouse argued that it effectively functions that way. In his view, the current market correction has exposed how such strategies can worsen losses when Bitcoin prices decline.

STRC is currently trading about 25% below its $100 par value, which Garlinghouse described as a troubling signal for both the product and the broader market.

He argued that companies should focus on creating sustainable long term value rather than relying heavily on financial engineering.

Garlinghouse emphasized that the lasting value of digital assets comes from solving meaningful problems at scale.

According to him, when an asset delivers real utility for customers, it naturally attracts liquidity, demand, and trust, all of which support stronger long term growth.

Despite his criticism of Strategy’s approach, Garlinghouse said he remains optimistic about Bitcoin’s future. He noted that with BTC down more than 50% from its October 2025 peak, current market conditions may present attractive opportunities for long term investors.

XRP’s Utility Remains Ripple’s Core Focus

Garlinghouse also spoke about XRP and its role within Ripple’s ecosystem.

While describing Bitcoin as digital gold, he noted that Bitcoin offers a more efficient way to transfer value compared with traditional assets like physical gold.

He then shifted focus to XRP, highlighting its primary use case in cross border payments and institutional settlement.

According to Garlinghouse, XRP’s value lies in the speed and efficiency of its blockchain infrastructure, particularly for financial institutions seeking faster payment solutions.

He added that Ripple has seen significant demand in this area, reporting roughly $16 trillion in payment volume processed during 2025 within its prime brokerage business, likely supported by recent acquisitions.

Garlinghouse said Ripple’s long term strategy has always centered on bringing traditional finance into modern blockchain infrastructure.

With its expanding capabilities and acquisitions, he believes Ripple is in a strong position to accelerate blockchain adoption across global financial markets.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Ripple has released its 2025 Annual Impact Report, outlining major achievements in education, financial inclusion, sustainability, and humanitarian support. Since 2018, the company has contributed more than $250 million globally, including over $70 million in 2025 alone.

The report emphasized how Ripple’s blockchain technologies, including XRP and the RLUSD stablecoin, have supported initiatives aimed at expanding economic opportunities and improving financial access. These efforts span emerging markets, microfinance programs, and humanitarian aid through collaborations with nonprofit organizations.

Ripple Expands Social and Financial Impact

Ripple allocated $25 million in RLUSD to support underserved small business owners in the United States and career development programs for military veterans.

The company also helped partners deploy $53.6 million in funding and supported nearly 12,000 water and sanitation loans through Water.org.

Several nonprofit organizations described Ripple’s contributions as long term strategic support rather than one time donations. Meanwhile, the International Rescue Committee continued exploring stablecoins as a faster and more efficient method for delivering emergency cash assistance during crises.

Ripple also highlighted continued investment in blockchain education and research through its University Blockchain Research Initiative.

Now in its seventh year, the program spans 62 universities, has distributed $74 million since 2018, and supported 198 XRP Ledger projects in 2025.

Research funded through the initiative focused on stablecoins, tokenized real world assets, decentralized finance infrastructure, cryptographic security, interoperability, AI governance, and broader blockchain applications.

Some projects specifically explored quantum resistant upgrades for the XRP Ledger, privacy focused technologies, and tools designed to detect price manipulation in decentralized finance markets.

Growth in Climate and Community Programs

Ripple’s report also showcased progress in climate focused initiatives powered by blockchain technology.

The company said it has invested $31 million in environmental projects and retired 1,000 tonnes of carbon dioxide equivalent through sustainable aviation fuel credits in 2025. Ripple aims to retire 93,000 tonnes by 2030.

Beyond environmental programs, Ripple reported record employee engagement in community impact efforts.

Around 80% of employees participated in volunteering and donation initiatives, supporting 544 nonprofit organizations and helping raise $550,000 for charitable causes.

Ripple also highlighted strong growth in blockchain adoption across its ecosystem.

According to the report, active users increased by 37% year over year, while transaction volume surged by 113%.

Tokenized real world assets on the XRP Ledger expanded significantly, growing from $24.7 million to $568 million during 2025. At the same time, total network transactions exceeded 3.8 billion, reflecting growing adoption of Ripple’s blockchain infrastructure worldwide.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic

Spot exchange traded funds tied to the two largest cryptocurrencies, Bitcoin and Ethereum, extended their negative streak, marking seven straight weeks of net outflows.

The latest trading week proved especially severe, with spot Bitcoin ETFs posting one of their worst weekly performances since launch.

Bitcoin ETFs See Heavy Selling Pressure

Recent weeks had shown slight improvement, offering some optimism despite continued outflows. During the two weeks before June 26, Bitcoin ETFs recorded smaller withdrawals of $316 million and $227 million, significantly lower than the $1.72 billion lost in the first week of June.

That relief was short lived.

Last week, investors pulled a total of $1.79 billion from spot Bitcoin ETFs, making it the second worst week for net outflows since the products launched. The only worse week came in late February 2025, when withdrawals reached $2.61 billion.

Total cumulative net inflows into Bitcoin ETFs have now fallen to $51.61 billion. For perspective, that figure stood above $59.3 billion in mid May, meaning nearly $8 billion has exited the funds in less than two months.

Breaking the week down by daily flows, Thursday saw the largest outflow with $696 million leaving the funds. Wednesday followed with $469 million in withdrawals, while Friday recorded $444.5 million. Monday and Tuesday were relatively lighter, with outflows of $90.66 million and $68 million respectively.

The sustained withdrawals from Bitcoin ETFs are widely seen as a major factor behind Bitcoin’s recent weakness. The continued selling pressure contributed to BTC falling to a multi year low of $58,000 earlier this week.

Market analysts believe ETF flows need to stabilize before Bitcoin can build momentum for a meaningful recovery.

Ethereum ETFs Also Extend Losing Streak

The situation surrounding spot Ethereum ETFs mirrors the trend seen in Bitcoin, though on a smaller scale.

Ethereum ETF products have also recorded seven consecutive weeks of net outflows. While withdrawals during the second and third weeks of June were relatively modest at $15 million and $10 million, the most recent week saw a sharp increase in selling pressure.

Investors withdrew $273.34 million from spot Ethereum ETFs during the latest trading week.

As a result, total net inflows into Ethereum ETFs have declined from $12.09 billion in mid May to below $11 billion by Friday’s close.

Tuesday and Thursday experienced the heaviest outflows, with investors pulling $82.35 million and $81.87 million from the funds on those days.

The continued outflows across both Bitcoin and Ethereum ETF markets highlight persistent caution among institutional investors as broader crypto market volatility remains elevated.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic