In July 2026, the crypto market staged a phased recovery after June's sharp correction. Total market cap rose from $2.11T to $2.28T, up 8.31%. ETH outperformed with 22.13% gains, driving DeFi blue chips like UNI and AAVE higher. However, the median return of +0.02% highlights structural divergence. Meme coins, AI/InfoFi tokens, and long-tail assets dominated the leaderboard, with AKE surging over 1,000%. Volume analysis shows 28 tokens had volume spikes above 3x, but high-volume signals were mixed. The recovery remains tepid rather than a broad bull run.

Anthropic said an unreleased version of its flagship model, Claude Mythos Preview, discovered two previously unknown attacks on cryptographic algorithms, including one targeting HAWK, a post-quantum digital signature system that had advanced to the third round of the U.S. NIST competition. According to the report, the attack cuts the cost of stealing HAWK’s smallest key from 2^64 operations to 2^38, or about 67 million times less work. Anthropic said fixing the issue would roughly double key sizes, weakening one of HAWK’s main selling points: compact keys and fast signing. The report also stressed that HAWK has never been deployed and that Bitcoin still uses ECDSA, so no live crypto system was broken by the finding. Even so, the development matters because a broad push toward quantum-resistant crypto infrastructure assumes that the replacement schemes are themselves secure. The newsletter also covered a range of market and policy developments, including gains in BTC and ETH ahead of the FOMC, public backing for the CLARITY Act from BlackRock, Fidelity, Franklin Templeton, Goldman Sachs, and SoFi, fresh ETF flow data, Zcash’s Ironwood activation, and a burst of meme coin trading activity led by PIPEDOG on Robinhood chain.

REKT hit $0.000001413 on Aug 8, 2025. Launched in late 2024, the ERC-20 meme coin is tied to Rektguy NFT, Rekt Drinks, and global events. Supply 420.69 trillion. Up 188% in 30 days but still highly volatile.

Major cryptocurrencies traded lower over the past 24 hours, with Bitcoin, Ethereum, XRP, Solana, and Dogecoin all posting losses. Dogecoin saw the sharpest drop among large caps, while several smaller tokens rallied strongly.

Wasabi Protocol suffered a multi-chain exploit across Ethereum, Base, Berachain, and Blast, with losses topping $5 million. Security firms linked the attack to a compromised admin key used to upgrade contracts and drain funds.

Memecoins are drawing renewed trader attention after a 35% Q1 drop, with Bitcoin dominance fading. DOGE and SHIB maintain strong liquidity, while newer tokens PIPPIN, TOSHI, and REKT eye short-cycle speculator rotation.

Wasabi Protocol suffered a ~$5M exploit when an attacker compromised the deployer's admin private key, draining vaults and liquidity pools on Ethereum, Base, and Blast. The breach highlights single-point-of-failure risks in upgradeable proxy architectures. Virtuals Protocol froze deposits; users urged to revoke approvals.

On April 30, 2026, Wasabi Protocol suffered a key management breach losing approximately $4.5–5.5 million across Ethereum, Base, and Blast chains. The attacker exploited the deployer's private key to upgrade proxy contracts and drain funds. Users are urged to revoke approvals immediately.