As a researcher who has closely followed the cryptocurrency market for several years now, I can’t help but feel a sense of sadness and concern as I observe the ongoing selling pressure on CRV, the native token of Curve Finance. The events of July 2023 have left an indelible mark on the crypto community, and the recent forced liquidation of Michael Erogov’s loans has only worsened the situation for CRV holders.
CRV, the native token of Curve’s decentralized exchange for stablecoins, is currently experiencing significant selling pressure. Following the July 2023 hack, CRV has not recovered as expected. The unfortunate liquidation of Michael Erogov’s loans has added to the woes of CRV holders.
Curve Founder Forced To Sell $677,000 Of CRV, Token Falling
Following the compulsory sale in mid-June that caused CRV prices to plummet below $0.30, it was revealed that the founder had to dispose of some CRV in the market to cover a portion of his debt. Yesterday’s Lookonchain data indicated that Erogov was forced to sell CRV for approximately $677,000.
At present, CRV’s price action shows no signs of significant recovery, with potential for further downtrend. Although the decline has not been as drastic as in June, the token remains vulnerable and could dip below key support levels around $0.21. Conversely, resistance can be found at approximately $0.30 on the upward trend.
As a researcher studying the cryptocurrency market, I find it intriguing how that resistance level acted as a pivot point in June when prices plunged, fueled by the liquidation of Erogov’s loans. This event sparked widespread fear within the crypto community due to concerns that the founder’s loans could potentially exacerbate instability within the protocol and negatively affect CRV holders.
According to on-chain records, Erogov obtained approximately $100 million in stablecoins by putting up around $140 million worth of CRV as security. It has been speculated that the founder used this loan to purchase high-end real estate.
As an analyst, I would rephrase it as follows: The series of compulsory liquidations and the founder’s desperate efforts to sell CRV during the hack, ultimately leading to his own liquidation, intensified the price drop.
Hopes On Spot Ethereum ETFs And Community Initiatives
After the cyberattack on July 30, CRV’s value has dropped significantly by more than 50%. Current holders of this cryptocurrency are enduring tough times as the overall crypto market is also experiencing a downturn, moving away from their previous record highs reached in March 2024.
The demand to buy CRV tokens has lessened after the majority of the collateral pledged by Erogov was recovered by lending platforms such as Frax and Aave. Nevertheless, the token is yet to regain significant traction.
Speaking from my experience as a seasoned investor and observer of the cryptocurrency market, I must admit that the current weakness in the Ethereum protocol is a source of concern for me, particularly given the recent positive developments we’ve seen this week. As an ardent supporter of decentralized exchanges (DEXs) and an advocate for Ethereum-based projects, I strongly believe that the approval and trading of spot Ethereum Exchange Traded Funds (ETFs) would bring significant benefits to the protocol in the long run.
Apart from enabling access to Ethereum through its derivative offerings, Curve has been gaining momentum. Notably, the community has approved a plan to enhance CRV liquidity by linking Solana and Ethereum using USDT as a bridge.
Via Picasso Network’s recently proposed venture, two separate pools of USDT on Solana and USDT on Ethereum have been introduced. The objective behind this move is to stimulate interoperability between chains and offer additional rewards for those supplying liquidity.
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2024-07-26 23:10