The cryptocurrency that fell by 30% per day is named

Crypto industry analysts note that the Curve DAO Token (CRV), the native token of the decentralized exchange, continues to lose ground. Cryptocurrency quotes have fallen by about 30% since the protocol was hacked more than a day ago. However, crypto experts later recorded a slight positive trend.

According to CoinMarketCap, at the time of writing, Curve DAO Token is trading for $ 0.59, a drop of 8.17%. The market capitalization of the asset amounted to $ 1.9 billion, and traders made daily trading deals worth $ 400.8 million.

Earlier, market researchers noted that «the threat of a potentially large liquidation of the borrowed position of the protocol’s founder is looming» Curve. This prompts many traders to accumulate short positions. According to CoinDesk, the value of the CRV cryptocurrency has been falling to its lowest level since November 2022, when the consequences of the collapse of the FTX cryptocurrency exchange became noticeable.

According to Velo experts, the notional open interest in CRV-linked perpetual futures has doubled to $ 106 million, along with extremely negative funding rates. According to experts, this is a clear sign that traders are betting on further price declines.

This is due to fears that the potential liquidation of large borrowing positions of Curve’s founder on the Aave and Fraxlend platforms could destabilize CRV quotes and the entire cryptocurrency market. «The founder of the project has a loan of about $ 100 million secured by 427.5 million CRV (about 47% of the total circulating supply). Curve’s stability is in jeopardy,» Delphi Digital representatives said on their X page.

According to the data, the CEO of Curve borrowed 63.2 million Tether (USDT) from Aave against a collateral of 305 million CRV. The position will be liquidated if the CRV/USDT rate drops to $ 0.37.

As a reminder, yesterday it became known that several stablecoin pools of Curve Finance (CRV) were exploited for $ 100 million. As a result, Curve Finance’s token price suddenly rose by 500% on the Korean exchange Bithumb.