Curve (CRV) Trading Volume Plunge 97% In 2 Months

Dalmas Ngetich

1 year ago

3 mins read

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Trading volumes associated with CRV, the governance token of Curve, a stablecoin decentralized exchange (DEX), is down 97% barely two months after it was hacked in late July 2023. According to Kaiko, CRV’s trading volume in centralized exchanges, especially Binance, where the token is actively traded, fell from nearly $300 million in late July to $7 million as of September 12.

CRV trading volumes slump Kaiko — CRV trading volumes slump: Kaiko

Trackers show that CRV is available for trading in multiple centralized and decentralized exchanges, including Binance, Uniswap, and Curve. However, considering the popularity and liquidity standing of Binance, most CRV trading was concentrated on the world’s popular crypto exchange.

To illustrate, Binance’s share of CRV trading is about 20% when writing, while Bitbox is next with a dominance of around 7%.

Curve’s TVL, Price, And Trading Volumes Collapse

In crypto, a drop in trading volume often indicates waning interest in a digital asset or general caution practiced by investors. With falling volume, the asset’s liquidity takes a hit as traders or investors opt out, even liquidating the coin as they choose stability and refuge. Sometimes, they can adopt a wait-and-see approach, evaluating how the token will react in light of changing market conditions.

According to DeFiLlama, Curve has a total value locked (TVL) of approximately $2.17 billion, down from $3.25 billion when the protocol was hacked. The decline in TVL and trading volumes comes amid the general lull in the decentralized finance (DeFi) scene.

Curve TVL drops DeFiLlama — Curve TVL drops: DeFiLlama

The drop in CRV valuation and trading volumes was worsened by the July exploit, which saw the protocol lose over $50 million worth of assets. Although Curve recovered most of those funds, the effect of the exploit called into question the general state of security.

The Hack And Erogov’s CRV Disposal

In the July hack, malicious actors exploited various Curve stablecoin pools using older versions of Vyper, a programming language used to create smart contracts on Ethereum. All Curve’s pools are automated, and this feature allowed hackers to drain multiple pools through a re-entrancy attack.

CRV reacted to this hack by dropping, falling sharply on July 30 from around $0.74 to $0.48. It has since exceeded halved, crashing to $0.40, a new 2023 low.

CRV price on September 12 when Curve trading volumes have dropped over 97% in 2 months| Source: CRVUSDT On Binance, TradingView — CRV price on September 12| Source: CRVUSDT On Binance, TradingView

During this time, Curve’s CEO, Michael Egorov, had to sell CRV holdings he had used to back his loans via over-the-counter (OTC) to entities and individuals such as Justin Sun when prices started falling. Egorov had taken out loans on Aave and Frax Finance secured by CRV.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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