A well-known DeFi platform, Curve DAO (CRV), is regarded for offering plenty of liquidity, mainly for stablecoins. The value of Curve’s native token, CRV, which is used as a method of transaction inside the protocol, as well as the total amount of funds dedicated to it, both significantly dropped as a result of an unhappy security incident that happened over the weekend.
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The huge amount of over $100 million in loans is now at risk of being liquidated, according to a Bloomberg story, presenting a significant issue for Michael Egorov, the founder of Curve Finance.
Investor anxiety increased as word of the likely sale of the Curve Founder’s assets spread, having a noticeable effect on recent price movement on the CRV market. Many people are now uncertain if there is any chance for recovery.
CRV Price Analysis: Mixed Trends Prompt Speculation On Sentiment
According to CoinGecko, the price of CRV is currently $0.563, down -2.40% over the previous 24 hours. In addition, CRV has significantly decreased by 22.1% over the last seven days.
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The prospects for the CRV token are clouded by a negative attitude, notwithstanding the recent rise. An important fundamental support level, tested in November and December 2022, is located at the $0.5 mark.
Unveiling Potential Shifts In Sentiment
The CRV price report makes an unexpected finding, pointing to a scenic increase in previously latent Open Interest (OI) charts during the past 48 hours. This incident happened during a time when the Curve DAO token’s chart showed losses.
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Egorov Responds To Contagion Concerns Amidst CRV Incident
In the meantime, Egorov showed his tactical plan to lessen the effects of the steady liquidation threat in a conversation with Bloomberg that was detailed in the same story. He examined his preventative goal of declining the volume of his loans.