Latest Swell Network (SWELL) News Update

Deep Dive

1. Coinbase Loss via MEV Bot (14 August 2025)

Overview: A misconfigured 0x contract approval at Coinbase allowed an MEV bot to drain $300K in SWELL tokens from its corporate wallet. Security researcher Deebeez linked the exploit to similar vulnerabilities in Base network projects. SWELL was among four tokens affected, alongside Amp and DEXTools.
What this means: While isolated to corporate wallets, the incident highlights custodial risks for tokens like SWELL in institutional setups. Immediate revocation of approvals prevented further losses, but underscores the need for rigorous smart contract audits. (Cointelegraph)

2. U.S. Geofencing Removed (8 August 2025)

Overview: Swell eliminated geographic restrictions for U.S. users, allowing full access to its liquid staking and restaking services. This follows evolving regulatory clarity under the 2025 GENIUS and CLARITY Acts.
What this means: Bullish for SWELL adoption, as U.S. users – previously blocked – can now participate in Swell’s DeFi ecosystem. The move aligns with broader institutional trends toward compliant crypto services, potentially boosting TVL. (Swell Network)

3. Bithumb Multichain Support (31 July 2025)

Overview: Bithumb integrated SWELL deposits/withdrawals on both Ethereum and Swellchain, reducing gas fees and improving cross-chain utility. SWELL’s TVL on Swellchain surged to $180M by 12 August.
What this means: Neutral-to-bullish. While enhancing accessibility for South Korea’s retail market (Bithumb handles ~10% of KRW crypto volume), bridging risks and Ethereum’s congestion could temper short-term gains. Long-term, it strengthens Swell’s position in liquid staking wars. (CoinMarketCap)

Conclusion

Swell balances operational risks (Coinbase exploit) with strategic wins (U.S. access, Bithumb integration), reflecting crypto’s high-stakes growth phase. With SWELL’s price up 6.59% weekly despite the August dip, key questions remain: Can Swellchain’s technical edge outpace competitors like Lido, and will regulatory tailwinds offset custody vulnerabilities?

Deep Dive

1. Swell L2 Mainnet Launch (Q4 2025)

Overview:
Swell L2, built on the OP Stack and secured via EigenLayer’s restaking, aims to become a hub for restaked assets. After launching its Devnet in November 2024, the team is finalizing audits and infrastructure partnerships (AltLayer, EigenDA) for mainnet. This will enable users to deploy real assets and interact with DeFi protocols like Lyra and GammaSwap.

What this means:
This is bullish for SWELL because mainnet adoption could drive demand for restaked SWELL (rSWELL) to secure the network. However, delays in partner integrations or technical hurdles could slow momentum.

2. Wavedrop Campaigns 2–6 (2025–2026)

Overview:
Following the initial 2% Wavedrop in December 2024, Swell plans five additional airdrops (1.25%–1% of supply each) to incentivize liquidity on Swell L2. These campaigns include vesting mechanisms to align long-term holders.

What this means:
This is neutral-to-bullish as liquidity incentives may boost SWELL’s utility but could pressure prices if recipients sell vested tokens. Monitoring swap volumes and TVL post-launch will gauge effectiveness.

3. AVS Integrations (Ongoing)

Overview:
Swell is collaborating with Actively Validated Services (AVS) like OpenLayer and Versatus to enhance Swell L2’s security and functionality. These integrations allow SWELL holders to restake tokens and earn yield from securing decentralized oracles and compute layers.

What this means:
This is bullish because AVS adoption diversifies SWELL’s use cases beyond governance. Risks include competition from LRT protocols like EtherFi and EigenPie.

4. DAO Governance Expansion (2025–2026)

Overview:
The Swell DAO will gradually assume control over liquidity incentives, node operator selection, and AVS approvals. Team and investor tokens (50% of supply) remain locked until late 2025, reducing sell pressure during decentralization.

What this means:
This is bullish long-term as community-led governance could improve protocol resilience. Short-term volatility may arise from contentious proposals or low voter participation.

Conclusion

Swell’s roadmap hinges on successful L2 mainnet adoption and AVS-driven restaking demand. While token incentives and governance shifts offer upside, execution risks in a competitive L2 landscape remain key. How will Swell balance decentralization with technical scalability as TVL grows?

Deep Dive

1. @swellnetworkio: Bithumb Integrates SWELL Multichain Support – Bullish

"Deposit and withdraw $SWELL on both Swellchain and Ethereum."
– @swellnetworkio (246K followers · 12K impressions · 31 July 2025 05:55 AM UTC)
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What this means: Bullish for SWELL as Bithumb’s integration enhances liquidity and credibility, particularly in South Korea’s strategic crypto market. Reduced Ethereum dependency via Swellchain’s lower fees could attract new users.

2. @swellnetworkio: Swellchain TVL Hits $180M – Bullish

"Top assets bridged: weETH, pzETH, rswETH"
– @swellnetworkio (246K followers · 8.2K impressions · 12 August 2025 02:59 AM UTC)
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What this means: The 62% TVL increase since July signals growing trust in Swell’s liquid staking solutions. Dominance of Ethereum derivatives (weETH, rswETH) highlights its niche in ETH restaking infrastructure.

3. @swellnetworkio: U.S. Geofencing Removed – Neutral/Bullish

"Geofencing for U.S. users has been removed."
– @swellnetworkio (246K followers · 5.7K impressions · 8 August 2025 02:32 AM UTC)
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What this means: Neutral-to-bullish – while expanding access to 40M+ U.S. crypto users, regulatory scrutiny risks remain. Could drive staking activity but may face compliance challenges long-term.

4. CoinTelegraph: SWELL Named in $50M Telegram Scam – Bearish

"SWELL offered at up to 50% discounts in Ponzi scheme"
– AMBCrypto (Published: 22 June 2025 12:00 AM UTC)
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What this means: Bearish sentiment lingers as SWELL’s association with the scam (though not protocol-related) damaged retail trust. Token price dropped 6% post-exposure, showing vulnerability to external market manipulation.

Conclusion

The consensus on SWELL is cautiously optimistic, driven by technical progress (TVL growth, Bithumb integration) but tempered by ecosystem risks (scam fallout). Watch the Swellchain/Ethereum TVL ratio – a sustained shift toward Swellchain would confirm its value proposition against Ethereum’s dominance. For traders, SWELL’s 43% 4h pump on 6 August shows volatility ripe for swing strategies.

Deep Dive

1. Architecture Rehaul (March 2023)

Overview: Swell replaced its atomic deposit/NFT model with an ERC20-based staking pool system to improve scalability and reduce validator activation delays.

The upgrade addressed edge cases tied to Ethereum’s interaction with Swell’s original design, requiring a months-long pause in deposits. The new architecture introduced swETH, a single reward-bearing liquid staking token, and vetted node operators to enhance security.

What this means:
This is bullish for SWELL because it simplifies staking, improves composability for DeFi integrations, and reduces technical friction for users. (Source)

2. Seawolf Testnet Launch (March 2023)

Overview: Swell deployed its redesigned protocol on Goerli, allowing public testing of its streamlined staking interface ahead of mainnet.

The testnet aimed to validate the protocol’s security and usability, with audits completed before the guarded mainnet launch. Users could stake testnet ETH to simulate real-world conditions.

What this means:
This is neutral for SWELL as it represents foundational groundwork. Successful testing likely increased developer confidence but didn’t directly impact live users. (Source)

3. Multichain Support (31 July 2025)

Overview: Bithumb integrated SWELL deposits/withdrawals on both Ethereum and Swellchain, enhancing interoperability.

This update reduced reliance on Ethereum’s gas fees by leveraging Swellchain’s efficiency. Users gained flexibility to choose networks based on cost or ecosystem needs.

What this means:
This is bullish for SWELL because it broadens accessibility, potentially attracting liquidity and DeFi activity across chains. (Source)

Conclusion

Swell’s codebase evolution emphasizes scalability (ERC20 migration), security (audited testnets), and cross-chain utility. While recent multichain integration boosts adoption, will swETH’s yield strategies drive sustained demand amid rising LST competition?