On June 13, 2024, the Curve DAO (CRV) token plunged over 30% due to founder Michael Egorov borrowing $95.7 million in stablecoins against $141 million in CRV, leading to significant liquidation risks. This massive price crash attracted the attention of cryptocurrency whales, who seized the opportunity to withdraw substantial amounts of CRV tokens from exchanges.
Whale withdrew 42.4 million CRV tokens from Binance
According to the on-chain analytics firm Lookonchain, four wallets collectively withdrew over 42.4 million CRV tokens, valued at $14.9 million, from the world’s largest cryptocurrency exchange, Binance. This significant withdrawal was followed by a notable price surge for the token.
As of writing, the CRV token is trading near $0.35, and in the last 24 hours, it has experienced a massive 16% upside momentum. Despite the price surge, the 24-hour trading volume has decreased by 16%, currently standing near $210 million. However, over the longer period, the CRV token is down by 2% in the last 7 days and by 20% in the last 30 days.
Given the CRV token accumulation and the recent price surge, there is a high chance that it may recover soon after the recent crash. This is not the first time whales have bought the dip. When the price of any asset drops due to uncertainty, whales often take it as an opportunity to accumulate heavily. A similar accumulation occurred in August 2023, when Curve DAO experienced a security breach, leading whales to increase their holdings from 33% to 41% of the total supply.
Crypto market in recovery mode
In addition to the recent CRV activity, another significant withdrawal occurred on June 19, 2024. A whale withdrew a massive 16,604 Ethereum, worth $58.6 million, from Binance. This withdrawal was made at an average price of $3,600 over the past 19 days, a period that saw a considerable market decline.
Despite these fluctuations, the overall cryptocurrency market appears to be in recovery mode, currently up by 1.2%. Leading cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), have experienced notable price increases of 3%, 2.5%, and 2.8%, respectively, in the last 24 hours.
This recent activity highlights the dynamic nature of the cryptocurrency market, where notable movements by large holders, or whales, can lead to massive price shifts. It also highlights the strategic behavior of these large investors, who often capitalize on market uncertainties to strengthen their positions.