CRV Whales Take advantage of the price drop to accumulate

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Whales now control 41% of the total token supply Price may drop in the coming weeks Large transactions took place in August Related news

A recently released report from Santiment revealed a significant accumulation trend among wallets holding between 10,000 and 100 million Curve Finance (CRV) tokens.

This new revelation may have the potential to amplify pre-existing buying pressure for CRV, contributing to the uptrend, analysts say.

Whales now control 41% of the total token supply

CRV whales, which historically held a significant share of tokens, have taken advantage of the recent price drop to further increase their CRV holdings. In just a few weeks, their collective ownership has risen from 33% to an impressive 41% of the total supply.

Despite a significant price drop since February, with CRV plummeting from around $1.2 to its current range of $0.58, marked by periodic swings, major token holders remained unfazed. Sanitation report sheds light on the intriguing dynamics of this unusual activity.

While this may raise concerns about inappropriate whale control, it’s worth noting the positive aspect of robust development activity on CRV’s GitHub repository. An average of 10-14 substantial GitHub submissions per day indicates a healthy level of engagement.

Currently, CRV’s market cap is over $505 million, with about 10% of it traded in the last 24 hours. CRV acts as the native token for the Curve DAO, a prominent operating system in today’s crypto landscape. Facilitated by the Ethereum-based creation tool Aragon, the DAO connects multiple smart contracts, collectively managing users’ deposited liquidity.

Therefore, it is becoming clear that while there may be a temporary lull in buying activity, continued community support will play a vital role in driving the continued expansion of the native token and wider ecosystem.

Price may drop in the coming weeks

The accumulation of the CRV token by whales may not bode well for the ecosystem, as highlighted in the report. Santiment cautioned that the potential for CRV dumping remains a concern, especially given the recent focus on news and ongoing activity within the blockchain. In fact, there were five substantial transactions totaling more than $10 million in the past week.

Notably, two of these transactions took place between exchange addresses, signaling further dumping ahead. Curve Finance has been embroiled in controversy, especially since Michael Egorov’s involvement in securing a $100 million stablecoin loan backed by CRV tokens, which has led to legal action against the founder of the project. While the impact of this event has already affected the price of CRV, developments such as this accumulation by whales could potentially contribute to further price declines in the future.

Large transactions took place in August

Santiment also reported a remarkable observation regarding the recent token transactions on Curve. Surprisingly, three of the top six token transactions made in 2023 all happened synchronously on August 4.

Intriguingly, two of these five trades were made between exchange addresses, suggesting the possibility of some selling pressure creeping in, despite the optimism conveyed by the previous chart trends.

In fact, this isn’t the first time in recent weeks that Curve has struggled with significant selling pressure following a troubling revelation. In July, an announcement had come out from the team pointing to a vulnerability in the ecosystem, potentially affecting more than $100 million worth of cryptocurrency. This troubling situation was attributed to a “re-entry” bug embedded in Vyper, a critical programming language that powers certain components of the Curve system.

A number of stablepools (alETH/msETH/pETH) using Vyper 0.2.15 have been exploited due to a faulty return lock. We are assessing the situation and will update the community as things develop.

Other pools are safe. https://t.co/eWy2d3cDDj

— Curve Finance (@CurveFinance) July 30, 2023

Unfortunately, this bug had already been exploited by malicious hackers, leading to a significant amount of money being compromised. However, the network quickly took action to address and resolve the issue. Despite these efforts, the wider community expressed concern, which was reflected in numerous comments and posts on various social media platforms.

The incident, coupled with the recent revelation of whale activity, has certainly served as a strong reminder for project investors to watch their investments as closely as possible and stay informed in this ongoing bear market.

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