In a surprising turn of events, the price of Curve DAO (CRV) recently crashed by nearly 30%, causing a wave of bearish sentiment across the crypto industry. The token dropped from $0.35 to a low of $0.27 due to massive liquidations.
Curve Finance’s founder, Michael Egorov, is facing the liquidation of millions of CRV tokens on various DeFi platforms. This follows Arkham’s report of a potential $140 million CRV liquidation. On-chain data suggests that the recent price crash has led to significant liquidations for Egorov.
Curve DAO Faces Major Liquidation Challenges
In a post on June 12, Arkham highlighted a looming $140 million in CRV liquidations. Aligning with this, Curve founder Michael Egorov has borrowed $95.7 million in stablecoins, mostly crvUSD, against his $141 million CRV across five accounts on five protocols. To maintain his positions, Egorov appears to be paying $60 million annually on Llamalend, as revealed by Arkham.
Data from PeckshieldAlert showed that a Michael Egorov-labeled address was already liquidated 20.2 million CRV on UwU Lend, another DeFi protocol, by the liquidator ‘sifuvision.eth.’ Amid the CRV price crash of almost 30%, a whale address 0xF078…0f19E was also recorded as being liquidated for 29.6 million CRV. Additionally, Lookonchain’s insights highlighted a trader’s liquidation of 10.58 million CRV on Fraxlend during the price crash.
Meanwhile, Lookonchain’s data indicated that Egorov held 111.87 million CRV in collateral and $20.6 million in debt across four DeFi platforms: UwU Lend, Fraxlend, Curve LlamaLend, and Inverse.
Lookonchain-data-on-Curve-Finance-founder
CRV Token Faces Major Plunge Amid Market Turmoil
At the time of writing, the CRV token witnessed a massive plunge of 20.39%, reaching $0.2778. The token’s 24-hour lows and highs are $0.2236 and $0.3742, respectively.
Amid this panic-inducing scenario, CryptoQuant CEO Ki Young Ju highlighted a significant increase in CRV balance on exchanges on the microblogging platform X. The exchange balance hit an all-time high, spiking 57% in the later hours of June 13. This increase in exchange supply adds to the token’s downside pressure in the market.
CRV-Exchange-Balance Status by CryptoQuant
Despite these negative factors, data from Coinglass showed a 108.32% increase in the token’s Futures Open Interest (OI) to $105.65 million, along with a derivatives volume surge of 472.96% to $1.33 billion. This underscores growing investor interest in the asset despite the current market challenges.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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