Token

The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/defi-market-turmoil-top-tokens-crash-post-curve-event-fears-of-contagion-loom/">DeFi Market Turmoil: Top Tokens Crash Post Curve Event, Fears of Contagion Loom</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
In the recent Curve Finance exploit, the DeFi market witnessed a major correction in several tokens, including COMP, CVX, and AAVE, with declines reaching nearly 22% within just two days. 
<h2 id="defi-token-market-takes-hit-after-curve-event-domino-effect-linger" data-name="defi-token-market-takes-hit-after-curve-event-domino-effect-linger" class="wp-block-heading">DeFi Token Market Takes Hit After Curve Event, Domino Effect Linger</h2> 
Earlier on 30 July, Curve <a href="https://twitter.com/CurveFinance/status/1685693202722848768" rel="noopener noreferrer nofollow">tweeted </a>that the exploit was found in a particular version of its programming language Vyper. Perhaps, Due to this significant exploit on the decentralized finance platform, Curve Finance, resulted in a quick 27% drop in the value of its native cryptocurrency, CRV, within a period of three days. 
The platform’s founder, <a href="https://www.linkedin.com/in/michael-egorov/" rel="noopener noreferrer nofollow">Michael Egorov</a>, utilized CRV as collateral in various crypto lending projects, borrowing over $100 million, leading to increased worries about possible forced liquidations and further losses. 
<h2 id="experts-warn-of-defi-ripple-effect-as-crv-decline-continues" data-name="experts-warn-of-defi-ripple-effect-as-crv-decline-continues" class="wp-block-heading">Experts Warn of DeFi Ripple Effect as CRV Decline Continues</h2> 
Experts concern that CRV’s continued decline could cause domino effects throughout the entire decentralized finance sector. Although, <a href="https://sg.linkedin.com/in/hsvonh" rel="noopener noreferrer nofollow">Stefan von Haenisch</a>, head of sales trading at OSL SG Pte in Singapore, <a href="https://www.bloomberg.com/news/articles/2023-08-01/crypto-market-unnerved-by-defi-exchange-curve-s-sinking-crv-token" rel="noopener noreferrer nofollow">highlights </a>the criticality of liquidation levels and warns of possible consequences in the broader DeFi landscape. 
While Curve Finance continues to be the second-largest decentralized exchange in the market, data from DeFiLlama indicates a significant decrease in the amount of crypto being utilized on the platform—from $3.6 billion to $1.9 billion. 
Despite the setback, Egorov remains optimistic about the resilience of the DeFi industry, stating efforts to minimize and eliminate the impact of the exploit.&nbsp; 
<h2 id="defi-tokens-experience-sharp-decline-amid-curve-finance-crv-crisis" data-name="defi-tokens-experience-sharp-decline-amid-curve-finance-crv-crisis" class="wp-block-heading">DeFi Tokens Experience Sharp Decline Amid Curve Finance (CRV) Crisis</h2> 
The recent turmoil surrounding Curve Finance’s CRV token has triggered significant downward trends across mainstream DeFi tokens.&nbsp; 
In the past 24 hours, COMP witnessed a sharp 18.09% decline to $60.28, while CVX fell by 14.92% to $2.84. Similarly, FXS experienced a substantial drop of 12.56% to $5.16, and AAVE suffered a 12.33% decrease, trading at $61.24. 
DefiLlama data indicate that a considerable portion of collateral is now at risk of liquidation if the CRV token falls to 37.5 US cents. Over the past three days, Aave’s native token has already seen a 15% drop. As one of the most crucial liquidity providers, particularly for stablecoins, Curve Finance’s downfall has impacted the broader DeFi ecosystem. 
The ripple effect of the Curve Finance incident is evident in the broader crypto market. Bitcoin’s price has slipped under $28,780, with trading volumes showing signs of drying up. The top ten altcoins are also experiencing consecutive corrections of 2-5% over the last two days. 
Investors and analysts are closely monitoring the situation as the uncertainty in the DeFi space continues. The potential for further market volatility remains a concern as the crisis unfolds.

DeFi Market Turmoil: Top Tokens Crash Post Curve Event, Fears of Contagion Loom

Spis treści

CoinPedia News

Inne artykuły opublikowane 1 sie 2023

Hong Kong's Largest Bank To Support Crypto, But There's A Catch

WuBlockchain Weekly: KuCoin Implements 30% Workforce Reduction、Worldcoin Launches Token WLD、Fed R...

5 Innovations Pushing Bitcoin to New Heights

Stocks That Could Have Doubled the Investment for Investors YTD

XRP Trades Marginally And Rises Back Above $0.71

Tether mints billions, InQubeta presale nears $2 million on rising demand

Zapisz się na bezpłatny newsletter i otrzymuj codzień aktualności ze świata kryptowalut!