CRV Founder Reaffirms Commitment Amidst Liquidation Crisis

DeFi token CRV has been thrust into the limelight after significant liquidations linked to its founder, Michael Egorov.

Significant liquidations have been linked to DeFi token CRV's founder, Michael Egorov, after reports emerged of him borrowing stablecoins and collateralizing them with CRV tokens. This event has brought CRV into the spotlight and triggered a cascade of liquidations affecting his wallets and others in the DeFi ecosystem. Here's a closer look at some key metrics to watch as the situation unfolds.

Following the news, Trading Volume has hit an all-time high since December 2021. At the moment, the market sentiment is heavily leaning into downward pressure with widespread FUD. The level of discourse towards the token is also the highest till now.

The number of unique addresses interacting on the network and the number of new addresses created are both at their highest since a similar price drop occurred in late July/early August 2023. This indicates heightened interest despite the current turmoil.

Another key metric is the ‘Deposits in Daily Active Addresses’, which measures the proportion of active deposits to the total amount of active addresses. Currently, it stands at 35.5%, the highest since August 2021.

In terms of whale holdings, the number of tokens held by non-exchange whales dropped substantially from 1.34 billion to 441 million coins on June 5th, signaling the exit of large holders. Despite the uncertain future of Curve, there has been a trend of major consolidation. Three wallets with over 100 million CRV tokens held half of the supply and have added 4.89% more of the supply from small wallets.

Furthermore, short-term swing traders’ 30-day MVRV (Market Value to Realized Value) stands at a reasonable -2%. However, addresses active in the past 365 days are seeing a ‘juicy’ -35%, the lowest since September 2023, indicating significant unrealized losses for long-term holders.

CRV Founder Reaffirms Commitment Amidst Liquidation Crisis

Amidst this liquidations Curve founder Michael Egorov has addressed the community, reaffirming his dedication to the project. Egorov aims to build a system that automatically incentivizes crvUSD supply sinks to enhance the stability and utility of crvUSD, contributing to the overall health of the Curve ecosystem.

News source：https://www.kdj.com/cryptocurrencies-news/articles/crv-founder-reaffirms-commitment-amidst-liquidation-crisis.html

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