The price of the Curve DAO (CRV) token has experienced a continued selloff, plummeting by over 50% in nearly three weeks. However, today’s price action was particularly severe, with CRV plunging from $0.33 to $0.22, a 35% drop. While this move is part of a broader bearish trend, the sharp decline today appears to have been triggered by specific actors in the market.
Founder’s Positions Face Liquidation
On-chain analysis by Wu Blockchain revealed that Curve founder Michael Egorov had borrowed a substantial amount of stablecoins, primarily crvUSD, across five different protocols. According to the report, Egorov had collateralized these loans with $141 million worth of CRV tokens across five accounts.
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Unfortunately, these positions have begun to face liquidation, adding significant selling pressure to the CRV market. Wu Blockchain stated that approximately $22.6 million worth of CRV collateral positions were liquidated in the past four hours, with around $15 million worth of CRV collateral being liquidated in the last hour alone.
Opportunistic Trader Capitalizes on Liquidations
Amid the market turmoil, an opportunistic trader identified as sifuvision.eth seized the opportunity to acquire a substantial amount of CRV at discounted prices. According to Lookonchain, sifuvision.eth spent 300,000 USDT to purchase 1.37 million CRV at a low price of $0.2184, taking advantage of the liquidations.
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Interestingly, Lookonchain also revealed that sifuvision.eth holds a short position on CRV, with a debt of 15 million CRV ($4.04 million) on the UwULend protocol. Prior to the CRV liquidations today, sifuvision.eth withdrew 6 million crvUSD from the Curve LlamaLend protocol, potentially contributing to the increase in Michael Egorov’s borrowing rate.
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The post Here’s Why Curve DAO (CRV) Price Plunged appeared first on CaptainAltcoin.