Stablecoin exchange protocol Curve recently faced a crisis as a large amount of $CRV held by its founder was liquidated. However, the price of Convex Finance token $CVX, the largest yield aggregator on Curve, soared by over 100% today…
(Previous context:
Curve founder’s 140 million pounds of CRV collateral is once again nearing liquidation, Arkham: only 10% downside space..)
(Background:
CRV plummeted by 40% in one hour! Curve founder liquidated over 50 million tokens, whales seize the opportunity to arbitrage)
On June 13, Michael Egorov, the founder of stablecoin exchange protocol Curve, saw over 50 million $CRV liquidated, causing the price of $CRV to plummet to $0.2 temporarily. On June 14, the price of $CRV slightly recovered, rising by 7.8% in 24 hours, and at the time of writing, it is temporarily reported at $0.33.
CVX aggregator surges over 100%
Today (17th), the price of Convex Finance token $CVX, the yield aggregator on Curve, surged by over 100%, attracting a lot of attention in the market. Moreover, on June 16, the trading volume of $CVX on the CVX/USDT spot trading pair on Binance reached 32 million USD, setting a new all-time high for daily trading volume.
The sudden surge in the price of CVX can be attributed to certain reasons. It is understood that the funds flowing into veCRV this week are six times the inflation this week, meaning that $CRV in the market is facing a significant deflationary situation. Crypto KOL @CredibleCrypto, who has nearly 400,000 followers, commented on this development.
On the other hand, analyst @JasonHitchcock, who has been involved in the Curve ecosystem for a long time, also expressed optimism about the long-term prospects of $CVX. He believes that Convex is currently in an excellent position.
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