In an unprecedented turn of events, the Curve DAO (CRV) price recently crashed nearly 30%, creating bearish sentiment across the crypto industry. The token fell from $0.35 to $0.27, spurred by massive liquidations involving Curve Finance’s founder, Michael Egorov.
On June 12, Arkham highlighted a looming $140 million CRV liquidation. Egorov has borrowed $95.7 million in stablecoins against $141 million CRV across five accounts. This includes paying $60 million annually to keep positions open on Llamalend.
PeckshieldAlert reported that Egorov’s address was liquidated 20.2 million CRV on UwU Lend. Another whale address faced a 29.6 million CRV liquidation. Lookonchain noted Egorov holds 111.87 million CRV in collateral and $20.6 million in debt across four DeFi platforms.
Amid the crash, the CRV token plunged 20.39% to $0.2778, with 24-hour lows and highs at $0.2236 and $0.3742, respectively. CryptoQuant CEO Ki Young Ju observed a 57% spike in CRV exchange balances, adding downside pressure.
Despite this, Coinglass data showed a 108.32% increase in the token’s Futures OI to $105.65 million and a 472.96% rise in derivatives volume to $1.33 billion, underscoring investor interest.
This event underscores the volatility and interconnected risks within DeFi platforms.
