Token price potentially recuperating: CETUS surges 20% as protocol upgrading vote edges closer to finalization
Cetus Protocol demonstrates a notable recovery as optimism among investors grows, propelling the cryptocurrency up by 20% in the past 24 hours. Currently trading at $0.15, CETUS is gradually recuperating from the significant drop on May 22, when a security breach caused a €223 million asset drain.
The intraday plunge on May 22 saw CETUS's price dive from an all-time high of €0.25 to a low of €0.14. After suffering this breach, the token's price continued its slide towards a post-exploit nadir of €0.12 — a steep 52% decrease from the May 22 peak.
Since May 26, CETUS has shown promising signs of recovery, reaching €0.17 before pulling back to its current level. This recent price action suggests a potential consolidation phase as the market processes the repercussions of the exploit.
To surpass the local resistance at €0.17, CETUS must maintain a steady momentum. Doing so would pave the way for tackling the significant hurdle around €0.19, a level that marked the lower boundary of the consolidation range before the breakout on May 22. Clearing €0.19 would thrust the token towards €0.23, a substantial resistance level where the price faced multiple rejections in May.
The Cetus Protocol has been actively working to restore investor confidence with a comprehensive recovery plan. A focal point of this strategy is a proposal for a protocol upgrade, which, if endorsed, would authorize the unfreezing of €162 million in assets currently locked within the Sui network validators.
If approved, this vote would enable Cetus to fully repay affected users by pooling the recovered funds with a secured loan issued by the Sui Foundation and Cetus's treasury reserves. The Sui Foundation is extending vital support through the loan, intended to cover the portion of the €223 million exploited funds that were bridged off the Sui network prior to the validators freezing the hacker's wallets. Compensation for users is expected to proceed regardless of the vote's outcome, but complete reimbursement hinges on the endorsement of the proposal.
As of press time, over 32% of necessary votes have been cast in favor, with around 18.5% remaining to meet the approval threshold. Traders display a cautious optimism, speculating that the CETUS price might reclaim the €0.25 level, its pre-breach price. Before reaching this target, however, the price must first overcome two major obstacles: the €0.19 level, marking the former consolidation floor, and the €0.23 range, a zone where the token experienced multiple rejections earlier in May.
Referenced Data:- 90% of validators and stakers have voted in favor of a community proposal to unlock frozen funds and proceed with a full refund to users affected by the hack[1][5].- Cetus is planning to reimburse users using its own funds, a loan from the Sui Foundation, and the unlocked frozen funds[2][3].- The Sui Foundation is providing substantial support in the form of a loan to cover losses and offering €10 million for security enhancements[2][3].- Cetus Protocol has outlined an 8-point recovery roadmap, focusing on restoring data, upgrading contracts, and resuming full functionality[1].- The successful execution of this plan is contingent upon ongoing community support and the effective management of the recovered funds.
- As Cetus Protocol rebounded by 20%, the crypto market witnessed a notable recovery in the value of CETUS, currently trading at $0.15.
- Investors remain optimistic about the future of CETUS, as the token attempts to surmount the local resistance at €0.17, a crucial step towards recapturing its pre-breach price of €0.25.
- To further aid in the recovery of CETUS, a community proposal has been advanced to unlock frozen funds, potentially authorizing the repayment of affected users using a combination of the recovered funds, a loan from the Sui Foundation, and Cetus's treasury reserves.
- The recent technological advancements in decentralized finance (DeFi) and the ongoing efforts of the Cetus Protocol team are key factors driving the growing optimism surrounding CETUS, a token built on the XRP ledger.
