- The Curve DAO token is struggling to recover from the weekend crypto crash.
- CRV has recently sunk to an all-time low.
- The crypto market is recovering; however, CRV remains in the red.
Since the start of the year, the crypto market has experienced consistent upward momentum, marked by increased activity and impressive upticks in prices. However, on April 12, volatility again reared its head, resulting in sharp declines across the market. Among the hardest hit was Curve DAO (CRV), the native token of the Curve Finance ecosystem, sinking to an all-time low.
Despite the optimism accompanying the start of the new week and the hopes of a market recovery, CRV remains stuck in its downward spiral.
CRV Cursed for Loss?
The native token, trading at $0.4315 at press time, has lost almost 2% in the last 24 hours, marking its 5th consecutive day of losses.
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CRV lost approximately 83% from a peak of $0.69 to $0.33 during the weekend crash, wavering between $0.40 and $0.43 since the broader market recovery commenced, signaling its inability to recoup its lost gains and notch new ones.
The native Curve Finance token’s performance contrasts the broader positive sentiment observed in the market, driven by the resurgence seen across most tokens. Unline Curve DAO, assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have kicked off the week with healthy gains, each recording approximately gains within the 5% range in recovery from the crash.
While CRV holders are accustomed to the token’s highs and lows, the current stakes heighten anticipation for its future path.
Curve DAO’s Underperomace Threatens Founder’s Stability
The fall of CRV to a record low of $0.3316 on April 12 spotlighted the token’s founder, Michael Egorov. Central to the crisis were Egorov’s lending protocol positions, which, thanks to his token’s underperformance, face the threat of potential liquidation.
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The Curve founder’s lending positions across six DeFi platforms and five addresses collateralize a total of 371 million CRV, valued at approximately $156 million, borrowing $92.54 million in stablecoins.
The depreciation in CRV’s value threatens the stability of Egorov’s holdings. According to analyst EmberCN, a further 10% decline following CRV’s already critical 83% loss could significantly impact Egorov’s already wavering 1.1 health rate, immediately triggering the liquidation of his position.
On the Flipside
- Curve founder Michael Egorov asserted the stability of his position, maintaining the absence of liquidations despite market analysis.
- A similar downturn in CRV’s price in August 2023 resulted in the dump of $159.4 million CRV to avoid debt liquidation.
- Curve DAO is trading approximately 15% below its all-time high.
Why This Matters
Curve DAO’s failure to reverse its negative price performance threatens its market position and founder’s stability, charting a rocky path ahead for the duo.
Discover more about this token and how it weathered the weekend market storm:
Weekend Bloodbath Sees All Top 10 Cryptos Tumble Except for One
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