Crypto Update Aug 18: Coinbase Smart Wallets Surpass 1 Million, AUTO Skyrockets

Latest Crypto Market Update: Coinbase Smart Wallet Growth Surges, Monero Faces 51% Attack

The global cryptocurrency market remains in a state of cautious optimism, with a market capitalization of $4.06 trillion, up 0.2% over the past 24 hours. Daily trading volume stands at $109 billion, reflecting continued liquidity and active participation among investors. Bitcoin continues to dominate with a 57.5% share of the total market, while Ethereum holds 13.3%. The number of tracked cryptocurrencies now exceeds 18,200, demonstrating a diverse and increasingly complex market landscape.

Among the most notable developments are Coinbase’s smart wallet adoption surge and a severe 51% attack on Monero, which has raised pressing security concerns for privacy coins and their decentralized ecosystems.

Source: ForexFactory

24-Hour Market Overview

Bitcoin, the world’s leading cryptocurrency, is trading at $117,283, marking a slight 0.1% decline over the last 24 hours. With a market capitalization of $2.37 trillion and $22.05 billion in daily trading volume, BTC remains the cornerstone of the crypto market.

Ethereum continues its steady presence at $1,523, maintaining investor interest amid a 24-hour trading volume of $10.5 billion.

Other notable trends in the past 24 hours include:

• Auto (AUTO): Priced at $400.4, with a trading volume of $1,475,231, AUTO saw an extraordinary spike of over 5,800% in trading activity, making it the biggest gainer of the day.

• Bio Protocol (BIO): Valued at $0.1319, rising 29.6% with a $2 million trading volume.

• CLANKER: Trading at $60.33 with $18.7 million in volume, posting a 23.3% gain.

In contrast, top losers included:

• Codatta (XNY): Fell 32.5% to $0.01638, with a $80 million trading volume.

• GXChain (GXC): Dropped 16.9% to $0.6174, reflecting reduced investor confidence.

• Graphite Protocol (GP): Declined 14.8% to $1.29 amid a trading volume of $6 million.

Stablecoins collectively maintain a $284 billion market cap, showing a marginal 0.1% increase, with daily trading activity reaching $82.09 billion. Meanwhile, the DeFi market stands at $170.20 billion, reflecting a 1.4% rise over 24 hours, with dominance at 4.2% and a trading volume of $8.6 billion.

The Bitcoin Fear & Greed Index currently sits at 60, slightly lower than yesterday’s 64, indicating a moderate bullish sentiment among investors, although lower than last week’s 70. Analysts say this sustained Greed zone suggests steady market confidence despite recent volatility.

Coinbase Smart Wallets Experience Rapid Growth

One of the most significant developments in the crypto ecosystem is the expansion of Coinbase’s smart wallet platform. Following the launch of the Base app, which simplifies wallet creation through passkey authentication and incentivizes users with free gas, Coinbase has surpassed 1 million smart wallet users. On August 16 alone, 270,000 new wallets were created, accounting for nearly 26% of new additions this month.

This surge in adoption reflects growing interest in decentralized finance (DeFi) solutions and user-friendly crypto interfaces. Coinbase’s integration of simplified wallet management demonstrates a broader trend in the industry: bridging accessibility and security for retail investors.

Despite the success, critics note that these smart wallets are still centralized due to the sequencer model used by Base, prompting questions about the level of decentralization in emerging DeFi infrastructure. Industry analysts argue that while growth is promising, full decentralization remains a challenge that will influence long-term user trust.

Leadership Changes and AI-Web3 Convergence

In other crypto industry news, Jason Zhao, a prominent figure at Story, has departed following the company’s $130 million fundraising round and token launch. Zhao will now focus on his AI startup, Poseidon, which emphasizes legally cleared training datasets.

Zhao’s departure has fueled debate within the crypto community regarding project viability and innovation. Story faced criticism over delays in delivering tangible products, highlighting broader challenges in Web3 project execution. Poseidon, however, represents the growing intersection of AI and blockchain, signaling an evolving priority in the industry toward practical applications of emerging technologies.

Japan’s Regulatory Push for Yen-Backed Stablecoins

Japan is set to approve yen-backed stablecoins this fall under the supervision of the Financial Services Agency, led by fintech company JPYC. This step marks a crucial milestone for Japan’s 2025 digital finance objectives and follows USDC’s approval earlier this year.

Unlike stricter regulations in the United States, including the “Genius Act,” Japan’s approach is expected to foster innovation while enabling safe digital currency adoption. The Bank for International Settlements (BIS) research estimates that stablecoins could reduce cross-border transaction costs by up to 30%, though volatility in the yen remains a concern for investors.

The regulatory clarity in Japan could position the country as a competitive hub for digital finance and stablecoin integration, highlighting a trend where global jurisdictions are competing to attract crypto innovation.

Monero Suffers 51% Attack, Kraken Suspends Deposits

In a major security event, Monero, a leading privacy coin, was subjected to a 51% attack executed by mining pool QUBIC, which gained majority control over the network’s hash rate. As a result, Kraken, a major cryptocurrency exchange, has suspended Monero deposits to protect users from potential double-spending and blockchain reorganization attacks.

SlowMist, a blockchain security firm, confirmed that the attack allowed QUBIC to reorganize multiple blocks, leaving dozens orphaned and exposing the network to significant vulnerabilities. While trading and withdrawals remain active, deposits will remain on hold until network stability is restored.

The incident has highlighted structural weaknesses in Monero’s RandomX algorithm, which is designed to resist ASIC mining but may still be vulnerable to mining centralization. Community discussions are now centered on potential solutions, such as decentralized mining pools (e.g., P2Pool) to prevent future majority attacks.

Despite the security scare, Monero’s market resilience is notable. XMR experienced an initial 14% drop but has since rebounded, underscoring the complex interplay between network security, market confidence, and investor behavior.

Implications for the Crypto Ecosystem

The Monero attack and Coinbase smart wallet growth underscore two important dynamics shaping the cryptocurrency industry:

Source: Alternative me

1. Security and Decentralization Challenges: Even well-established cryptocurrencies face significant threats from concentrated mining power. The Monero attack reinforces the need for robust security measures and transparent governance mechanisms in blockchain networks.

2. Adoption and Accessibility: Platforms like Coinbase are driving mainstream engagement with crypto assets through user-friendly interfaces and incentivized adoption. While centralized solutions raise questions about true decentralization, they are crucial in expanding participation beyond early adopters.

Investors and developers are increasingly aware of the balance between growth and risk management, particularly as privacy-focused cryptocurrencies and DeFi platforms gain traction. Regulatory developments, both in Japan and globally, will also play a critical role in shaping adoption trajectories and investor confidence.

Looking Ahead

Market watchers predict continued volatility in the near term, influenced by security incidents, technological innovation, and regulatory developments. Analysts advise caution while emphasizing the potential for long-term growth, especially for projects that combine user accessibility with robust security measures.

As the industry evolves, the dual challenges of decentralization and mass adoption will remain central. Innovations like Coinbase’s smart wallets highlight progress toward mainstream integration, while the Monero attack reminds the community that security vulnerabilities can quickly undermine confidence.

The coming months will likely see intensified efforts to balance innovation, regulation, and user protection, defining the next phase of cryptocurrency adoption globally.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.