CRV Token Drops Over 34% After Curve.fi Founder Liquidation New Broke
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CRV, the native token of Curve.fi, is one of the biggest losers in the crypto market crash. The token’s value plummeted by over 34% after news broke that Curve.fi founder Michael Egorov was being liquidated. This drastic price drop and the news of its founder’s liquidation have raised doubt and fear among investors about CRV’s development and ongoing projects.
At its lowest point, CRV dipped below $0.236 on Thursday, showcasing the severe impact of the market crash. The token has since rebounded slightly, settling at $0.261.
The $CRV price dropped up to 34% (3H) after the news of the #Curvefi founder (Michale Egorov) being liquidated broke out!
Here are the on-chain highlights
1. Michale Egorov (@newmichwill) currently has 139M $CRV ($37M) in collateral and $27M in debt across 3… pic.twitter.com/tJLtmLUqLo— Spot On Chain (@spotonchain) June 13, 2024
Founder’s Liquidation Sparks Panic
According to Spot On Chain, a blockchain analytical platform, news of Michael Egorov’s liquidation has been a major factor in CRV’s sharp decline. Egorov currently holds 139 million CRV tokens, valued at approximately $37 million, as collateral.
His debt, totaling $27 million across three platforms and wallets, has added significant financial strain. This has increased pressure on the CRV token, pushing its value further down.
This isn’t the first time when the news of the Curve founder’s liquidation has come up. On April 14, Wu Blockchain reported that Curve founder Michael Egorov faced liquidation when the CRV token dipped to $0.42. This event brought Egorov close to liquidating 371 million CRV (approximately $156 million) used as collateral for stablecoin loans.
In total, nearly $128 million worth of crypto collateral has been liquidated on DeFi lending platforms. Notably, more than $24 million has been liquidated on Aave alone
Whale Movements in Response
In response to the news, significant on-chain movements have been observed. An unknown whale with a wallet address of i0xF07 recently deposited 29.62 million CRV tokens, worth $7.68 million, to Binance.
This move is believed to be due to the liquidation of Fraxlend, showing the broader market impact of Egorov’s liquidation.
Ray Of Hope
On the other hand, Binance has easily integrated Curve Finance’s token, CRV, into Arbitrum One and Optimism. This way, Binance aims to provide its users with faster and cheaper transactions critical in the constantly evolving DeFi space by employing the features supplied by Arbitrum One and Optimism.
