DeFi token CRV has been thrust into the limelight after significant liquidations linked to its founder, Michael Egorov. Reports of his borrowing of stablecoins collateralized by CRV tokens triggered a cascade of liquidations affecting his wallets and others in the ecosystem. Here’s a detailed breakdown of key metrics to watch as the situation unfolds.
Following the news, Trading Volume has hit an all-time high since December 2021. At present, the market sentiment is leaning heavily 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 level 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.
In case anyone is wondering, I am committed to building Curve more than ever. Following are the focuses: – Apply observations to make sure that lending/borrowing products are the safest in industry at all market conditions; – Produce educational work for arbitrage traders to teach them how to do liquidations (yes, they need it!); – Make sure that crvUSD supply sinks are _automatically_ incentivized by the system.
