On July 30, 2023, Curve Finance experienced a significant security breach in its stable pools, resulting in major losses. Thus, the native token CRV suffered a sharp price decline from $0.73 to $0.5 due to a reentrancy attack on the pool.
Whales and investors took the opportunity presented by this security breach and heavily accumulated by taking advantage of the price decline. According to data from Coinalyze, this price decline led to a surge in open interest in CRV-linked perpetual futures, reaching over $124 million.
A recent report from Santiment revealed that large wallets holding between 10,000 to 100 million CRV tokens engaged in significant accumulation, increasing their holdings from 33% to 41% of the total supply. However, there is a cautious sentiment regarding potential dumping, highlighted by over $10 million worth of CRV being sold in five significant transactions last week. Notably, some of these transactions occurred between exchange addresses, suggesting the possibility of further dumping.
The selling pressure on CRV appears to be easing, as whale transactions have slowed down since the price dropped to just above $0.50 two weeks ago. Nevertheless, CRV’s price remains notably lower than pre-crash levels. A positive note is highlighted by Santiment’s observation of ongoing positive GitHub activity for CRV, indicating the team’s commitment to development despite market concerns.
A recent report by Todayq News on August 5, 2023, revealed that Curve Finance CEO Michael Egorov engaged in over-the-counter (OTC) deals, and sold approximately 106 million CRV tokens from his stakes at a discounted price of $42.41 to various institutions. This move was aimed at preparing his position and repaying his debts. This isn’t the first instance of whales taking advantage of a price decline in CRV tokens. Previously, during a 12% XRP price decline between June 22 and June 28, whales had purchased 360 million XRP worth $170 million.
As of now, CRV is trading at $0.6064, with a slight 1.07% loss over the past 24 hours. The current price is closer to the 24-hour low of $0.6048 than the high of $0.6492. Encouragingly, despite the daily drop, CRV’s performance over the week has shown a gain of 5.58%.