Trading Volumes for Curve’s CRV Token Plummet 97% Following Hack
The trading volumes associated with CRV, the governance token of Curve, a stablecoin decentralized exchange (DEX), have dropped by 97% in just two months since the hack that occurred in late July 2023. According to Kaiko, the trading volume of CRV on centralized exchanges, particularly Binance, where the token is actively traded, has fallen from nearly $300 million in late July to just $7 million as of September 12.
CRV Trading Concentrated on Binance
CRV is available for trading on various centralized and decentralized exchanges, including Binance, Uniswap, and Curve. However, due to the popularity and liquidity of Binance, most CRV trading was concentrated on this crypto exchange. Binance currently holds about a 20% share of CRV trading, with Bitbox following closely at around 7% dominance.
Curve’s TVL, Price, and Trading Volumes Experience Decline
A drop in trading volume often indicates a decrease in interest or caution from investors. The decline in trading volume for CRV has had an impact on the asset’s liquidity, as traders and investors opt for stability and refuge. Curve’s total value locked (TVL) has decreased from approximately $3.25 billion to $2.17 billion since the hack, while trading volumes have also declined. This decline is part of the overall lull in the decentralized finance (DeFi) scene.
The Hack and Erogov’s CRV Disposal
The July hack exploited various Curve stablecoin pools using older versions of Vyper, a programming language for Ethereum smart contracts. The automated nature of Curve’s pools allowed hackers to drain multiple pools through a re-entrancy attack. As a result, the price of CRV dropped significantly. Michael Egorov, Curve’s CEO, had to sell his CRV holdings to repay loans secured by CRV when the token’s price started falling.
Hot Take: Curve’s CRV Token Faces Steep Decline in Trading Volumes
The recent hack of Curve’s stablecoin decentralized exchange has had a significant impact on the trading volumes of its governance token, CRV. With a 97% decline in trading volumes, it is clear that the hack has shaken investor confidence and led to a decrease in interest in the token. This decline in trading volumes not only affects the liquidity of CRV but also raises concerns about the overall security of the protocol. Curve’s CEO, Michael Egorov, had to sell his CRV holdings to repay loans, further exacerbating the token’s decline. It remains to be seen how Curve will recover from this setback and regain the trust of investors.
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