Is Curve Looking for a Price Swerve?
Controversy has surrounded Curve Finance ever since Michael Egorov was found to have taken out a $100M stablecoin loan using CRV tokens as collateral and lawsuits have popped up toward the project's founder. However, the asset itself hasn't completely fallen off a cliff despite the high level of FUD.
Taking a quick peek at some of CRV's metrics to watch, it would be wise to start with looking at the key address tiers that historically have seen some correlation with the asset's price. Wallets holding between 10K to 100M CRV have just recently accumulated in a huge way. These key stakeholders have gone from holding 33% of the existing supply just two weeks ago to holding a whopping 41% at the time of this writing. This is a massive ascension, and is now the most by far that these sharks and whales have held in well over a year.
And by looking at Curve's top token transactions table, we can see that three of the six largest transactions of 2023 all occurred on August 4th at the exact same time. In fact, CRV's network has seen such major whale activity that 5 transactions over the past week have exceeded $10M in value. And 2 of those 5 were from exchange address to exchange address, indicating some dumping may be occurring despite the optimism that the previous chart shows.
We can also see how the amount of whale transactions (valued at $100K or more) has mostly calmed down after all of the fireworks from two weeks ago caused the price to crash to just above $0.50 before recovering slightly. With prices still significantly lower than 2 weeks ago, a follow-up whale transaction spike may be a foreshadow to a quick recovery.
Finally, for those worried that the project is dead after all of the controversy, Santiment's tracked notable development activity for Curve Finance appears to be healthier than ever. By no means is 10-14 notable github submissions per day breaking any records, but it is indicative of a team that is still looking to innovate, improve, and move past the recent FUD news that negatively impacted the crowd's perceptions of it.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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