Curve (CRV) Trading Volume Plunge 97% In 2 Months
13 Septembre 2023 - 4:00AM
NEWSBTC
Trading volumes associated with CRV, the governance token of Curve,
a stablecoin decentralized exchange (DEX), is down 97% barely two
months after it was hacked in late July 2023. According to Kaiko,
CRV’s trading volume in centralized exchanges, especially Binance,
where the token is actively traded, fell from nearly $300 million
in late July to $7 million as of September 12. Trackers show
that CRV is available for trading in multiple centralized and
decentralized exchanges, including Binance, Uniswap, and Curve.
However, considering the popularity and liquidity standing of
Binance, most CRV trading was concentrated on the world’s popular
crypto exchange. To illustrate, Binance’s share of CRV trading is
about 20% when writing, while Bitbox is next with a dominance of
around 7%. Curve’s TVL, Price, And Trading Volumes Collapse
In crypto, a drop in trading volume often indicates waning interest
in a digital asset or general caution practiced by investors. With
falling volume, the asset’s liquidity takes a hit as traders or
investors opt out, even liquidating the coin as they choose
stability and refuge. Sometimes, they can adopt a wait-and-see
approach, evaluating how the token will react in light of changing
market conditions. Related Reading: Stake’s Hacker Moves
$328,000 Worth Of Crypto From Stolen Funds According
to DeFiLlama, Curve has a total value locked (TVL) of
approximately $2.17 billion, down from $3.25 billion when the
protocol was hacked. The decline in TVL and trading volumes comes
amid the general lull in the decentralized finance (DeFi) scene.
The drop in CRV valuation and trading volumes was worsened by the
July exploit, which saw the protocol lose over $50 million worth of
assets. Although Curve recovered most of those funds, the
effect of the exploit called into question the general state of
security. The Hack And Erogov’s CRV Disposal In the July hack,
malicious actors exploited various Curve stablecoin pools using
older versions of Vyper, a programming language used to create
smart contracts on Ethereum. All Curve’s pools are automated, and
this feature allowed hackers to drain multiple pools through a
re-entrancy attack. CRV reacted to this hack by dropping,
falling sharply on July 30 from around $0.74 to $0.48. It has since
exceeded halved, crashing to $0.40, a new 2023 low. During
this time, Curve’s CEO, Michael Egorov, had to sell CRV holdings he
had used to back his loans via over-the-counter (OTC) to
entities and individuals such as Justin Sun when prices started
falling. Egorov had taken out loans on Aave and Frax Finance
secured by CRV. Related Reading: BREAKING: Crypto Exchange
CoinEX Reportedly Hit By Massive Hack, Losses Exceed $27 Million
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