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Safe Launches 'Safe Labs' for Institutional Crypto Security Amid Wallet Exploits; ETH & SOL Prices Decline | Flash News Detail | Blockchain.News
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7/1/2025 7:06:00 PM

Safe Launches 'Safe Labs' for Institutional Crypto Security Amid Wallet Exploits; ETH & SOL Prices Decline

Safe Launches 'Safe Labs' for Institutional Crypto Security Amid Wallet Exploits; ETH & SOL Prices Decline

According to @phantom, multi-party crypto wallet Safe has launched a new development unit, Safe Labs, to enhance security and attract institutional clients. This strategic shift follows a major hack and aims to address what Safe Labs CEO Rahul Rumalla calls 'cyber warfare' in the crypto space. The new unit will develop a 'V2' wallet and a 'Safe Pro' subscription plan for enterprises, building on Safe's platform which already secures over $60 billion in total value locked (TVL) and processes 10% of all EVM transaction volume. This security-focused development occurs as the market sees increased phishing attacks, such as a recent front-end exploit on a major crypto media website. Concurrently, market data indicates a downturn, with Ethereum (ETH) trading around $2,405, down approximately 3.5%, and Solana (SOL) dropping to about $147.55, a 4.7% decrease.

Source

Analysis

The cryptocurrency market is currently grappling with a potent mix of short-term security fears and long-term infrastructure advancements, creating a complex and volatile trading environment. Recent high-profile front-end exploits have injected a fresh wave of caution among investors, directly impacting the price action of major assets like Ethereum (ETH) and Solana (SOL). Simultaneously, foundational projects are making strategic moves to harden security and attract institutional capital, setting the stage for a potential future rally. This dichotomy between immediate risk and future promise defines the current market landscape, offering distinct opportunities for traders who can navigate the conflicting signals.



Market Reacts to Security Threats as ETH and SOL See Red


Sentiment took a hit following news that a major crypto media outlet's website was compromised with a front-end exploit, tricking users with a fake airdrop pop-up designed to drain their wallets. This incident, which mirrored a similar attack on another data platform just days earlier, underscores a persistent vulnerability in the ecosystem: the weaponization of trusted platforms for phishing attacks. Such events erode user confidence and often trigger a risk-off response in the market. The price action over the last 24 hours reflects this anxiety. Ethereum (ETH), trading on the ETHUSDT pair at approximately $2,405.01, has fallen by 3.52%. Similarly, Solana (SOL) experienced a sharper decline, with the SOLUSDT pair dropping 4.71% to trade at $147.55. These pullbacks demonstrate how security headlines can directly translate into bearish pressure, pushing prices toward key technical support levels.



A Tale of Two Blockchains: ETH and SOL Price Action Dissected


Diving deeper into the technicals reveals a nuanced picture for traders. Ethereum has been battling to hold its ground, with its price consolidating across major pairs like ETHUSD ($2,395.74) and ETHUSDC ($2,391.58). The critical 24-hour range for ETH has been established between a low of roughly $2,374 and a high near $2,498. The failure to reclaim the $2,500 psychological level serves as immediate resistance, while the ~$2,375 area has emerged as the first line of defense for bulls. A crucial indicator for traders is the ETHBTC pair, which slipped 1.9% to 0.02275 BTC. This shows that during this period of uncertainty, Ethereum has been losing ground against Bitcoin, a classic sign of traders rotating capital towards the perceived relative safety of BTC.



Solana's Contrasting Signals and Relative Strength


Solana's price action tells an even more complex story. The asset broke below the key $150 support level, with its 24-hour low hitting $145.03. Its performance against Bitcoin was notably weaker than Ethereum's, with the SOLBTC pair plummeting 4.3% to 0.0013733 BTC. This suggests that, in the broad risk-off move, SOL was perceived as a higher-risk asset than ETH. However, the most compelling data point for pair traders lies in the SOLETH chart. In a surprising twist, the SOLETH pair actually gained 2.6%, climbing to a 24-hour high of 0.06800. This indicates that despite its significant drop against both the US dollar and Bitcoin, Solana demonstrated relative strength against Ethereum during this specific window. For traders, this highlights a potential arbitrage or pair-trading opportunity, betting on SOL's continued outperformance of ETH even within a bearish market structure.



Infrastructure Hardens as Safe Labs Launches to Combat 'Cyber Warfare'


Contrasting with the short-term market jitters is a significant fundamental development from Safe, the popular multi-signature wallet platform formerly known as Gnosis Safe. The project has launched Safe Labs, a new in-house development unit aimed at bolstering security and accelerating its product roadmap. According to Safe Labs Chief Executive Rahul Rumalla, this move was catalyzed by major industry hacks and reflects a shift in mindset. He stated that the crypto space is no longer just defending against cyberattacks but is engaged in "cyber warfare," requiring a more robust and proactive approach. This strategic pivot involves bringing development in-house to operate at "startup speed" and build more opinionated products that don't force a compromise between security and convenience. This development is a powerful long-term bullish signal for the security and maturity of the on-chain economy, particularly within the Ethereum ecosystem where Safe is a dominant player, reportedly processing 10% of all transaction volume across EVM-compatible networks. The plan to launch a subscription-based "Safe Pro" for institutional clients could unlock a new wave of enterprise adoption, providing a strong fundamental underpinning that contrasts sharply with the market's current security fears.

Phantom

@phantom

The friendly crypto wallet built for DeFi & NFTs.

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