This Week’s Crypto Narrative: Hyperliquid Jelly Incident, Stablecoins ATH, and GME Bitcoin Reserve

This Week’s Highlight:

• Hyperliquid JellyJelly Incident.
• Stablecoins in up-only mode across crypto.
• GameStop announces plans for a $1.3 billion Bitcoin strategic reserve.

Hyperliquid Jelly Incident: What Happened?

The Hyperliquid JELLY incident takes center stage this week. The eli5defi explanation above sums up the entire event. In short, Hyperliquid’s HLP vault almost went bankrupt, and trust in Hyperliquid is being shaken.

Eventually, the Hyperliquid validator sets voted to “rollback” the price of JELLY to before the position was in loss. So, the exchange promptly delisted JELLY, netting a tiny profit for the HLP vault and preventing further damage.

Furthermore, there are speculations that CEX-related entities carried out the attack. This is reinforced by the timing of the perpetual contract listing of JELLY by Binance and OKX. Curiously, they list JELLY right as the issue in Hyperliquid circulated in the market.

The HYPE price took a tumble as the incidents unfolded, falling around 15% since. The HLP vault also suffered a $200 million outflow. This is the second shorting incident for Hyperliquid this March. Obviously, this is very bearish for HYPE price as it struggles to recover.

Crypto Market Update

Losers and Winners in the past week:

Bitcoin Fear & Greed Index returns to neutral:

Bitcoin dominance rebounds on its path to a new ATH after a slight corrections:

Top Crypto News and Alpha Tips

1. GME Announced BTC Strategic Reserve Plan

Gamestop announced the decision to raise $1.3 billion to purchase BTC as a strategic asset. This decision was supported by GameStop’s board.

However, the market didn’t respond positively to this. Many thought that GameStop is attempting to repeat Michael Saylor’s strategy.

2. BlackRock’s BUIDL Expands to Solana

Securitize announced that BlackRock’s BUIDL fund is coming to Solana. Furthermore, current data show that they launched with a $20m initial fund.

2. Stablecoins ATH on Solana and Beyond.

Data shows that stablecoin is in an up-only mode. Total stablecoin market cap continues to climb upward, reaching $234 billion as of March 28.

Furthermore, this is also true for many chains, including Solana, Tron, and Ethereum. Stablecoins on Solana just reached $12.4 billion.

3. Sonic Airdrop Tips and More

@0xandrewmoh on Sonic TVL growth and apps to try for airdrop.

DeFiIgnas top 5 upcoming projects without tokens.

Airdrop tips from @0xwelfare :

4. AI Prompts for Crypto Research

@Defiminty shares his alpha on how to use AI for crypto research.

5. Key Bitcoin Price Level

@damskotrades shares his view on the only 3 price levels for Bitcoin.

Conclusion

The market is still going through a very turbulent phase, with no clear direction in sight. This week, the Hyperliquid incident captured the attention of the community, with many people debating the platform’s centralization switch. Furthermore, it was not all doom and gloom as stablecoin continues its uptrend. There is also much positive news such as BlackRock’s expansion to Solana and GameStop’s Bitcoin bid.