The price of the CRV token fell more than 25% in the past 24 hours.
Curve Finance founder Michael Egorov’s positions were liquidated.
Three accounts belonging to Egorov account for 90% of the borrowed crvUSD.
Curve Finance’s CRV token has plunged in value after a series of liquidations tied to founder Michael Egorov’s substantial borrowing against the token.
Pointed out by WuBlockchain in an X post, Curve Finance founder Michael Egorov “borrowed $95.7 million in stablecoins (mainly crvUSD) through five accounts in five protocols, collateralized by $141 million worth of CRV.”
Blockchain intelligence platform Arkham stated that $50 million worth of crvUSD borrowed by Egorov is outstanding on LlamaLend, a DeFi lending protocol, and the transaction cost the crypto entrepreneur over 120% APY.
Arkham also stated that Egonov’s position began liquidating when CRV fell more than 10%, as “there is almost no remaining crvUSD available for borrowing against CRV on Llamalend,” adding:
“Three of Egorov’s accounts already make up over 90% of the borrowed crvUSD on the protocol.”
The price of CRV fell almost 25% in the past 24 hours, which resulted in Egorov’s positions being liquidated. Data from Parsec shows that in the last 4 hours, $22.6 million worth of CRV collateral positions were liquidated, which includes the liquidation of $15 million worth of CRV positions in the past hour.
According to the data from CoinMarketCap, the price of CRV currently stands at $0.268, down by more than 25%, followed by a 42.37% drop in the last seven days. Moreover, the cryptocurrency is down 58.51% since June 2023.
Additionally, the trading volume of the CRV token increased by a massive 568.96%, even as the market capitalization stands at $331 million. The cryptocurrency has fallen to the 181st position in the digital asset space.
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