Bitcoin Price falls below $29,000, ETH Under $1900 & CRV Drops 25% in 3 Days

Key Takeaways

• Bitcoin and Ether show stability in the crypto market, but other tokens face significant losses.
• Linked to Curve Finance’s DAO, CRV Price experienced a 10.3% drop after an exploit.
• Founder Michael Egorov holds a $168 million lending position on Aave secured by CRV, making him vulnerable to liquidation.
• Lending protocol tokens, including AAVE, COMP, MPL, and MKR, lead the market decline.

Introduction

As the crypto markets kick off their new business day, the crypto landscape showcases a mix of stability and turmoil. Bitcoin and Ether, the two major players, exhibit stability, while other tokens experience significant losses. eToro US Investment Analyst Callie Cox, attributes the stagnant movement of crypto majors to seasonal patterns, especially in August and September, as investors may divert their attention from trading during vacation periods. However, the market has plunged into chaos due to an exploit suffered by CRV, the token associated with Curve Finance’s DAO. This exploit has put the founder’s massive lending position at risk, potentially causing a cascading series of liquidations and flooding the market with liquidated assets.

Slumping CRV and the Looming Liquidation Threat

The recent exploit on Curve Finance’s DAO has rattled the market, causing CRV’s price to plummet by over 25% over the past three days. Founder Michael Egorov finds himself at risk of liquidation as his $168 million CRV-backed loans face potential downfall. This situation poses a substantial risk to decentralized finance (DeFi), as the liquidation of such a massive position could trigger a domino effect across the market.

CRV/USD | Source: TradingView

Litecoin’s Silver Cards: Capturing Interest in a Halving Event

Litecoin, often referred to as “digital silver” alongside Bitcoin’s “digital gold,” is gaining renewed attention due to its upcoming halving event. Litecoin creator Charlie Lee and his brother Bobby Lee have collaborated on a unique crypto promotion to capitalize on this interest surge. They have designed 500 collectible cards made of 99.9% pure silver, loaded with 6.25 LTC each. These limited edition cards, expected to be sold for about $1,000, hold tangible silver value and represent intangible value to buyers also. The proceeds from the sale will be donated to the Litecoin Foundation to support the blockchain’s adoption and development.

However, Litecoin’s price action performance has been rather poor over the past couple of weeks, despite the Litecoin halving event being a little over 24 hours away as of writing this article, according to data from Nicehash.com. LTC price has fallen over 20% from its 2023 highs and has established a clear downtrend since the beginning of July. Unless the LTC price can break out from the $100 level, we could see a continued downward trend in this token.

LTC/USD | Source: TradingView

Read more about Litecoin Halving Event 2023

Conclusion

Thus, in conclusion, while Bitcoin and Ether maintain stability in the crypto market, CRV’s exploit triggers significant losses in the market. Founder Michael Egorov’s $168 million lending position on Aave secured by CRV remains at risk of liquidation, potentially impacting the broader DeFi space. Meanwhile, Litecoin seizes the opportunity of its halving event to capture interest with unique collectible silver cards aimed at supporting the Litecoin Foundation’s endeavors.

Source: CoinDesk