Curve price likely to sustain weekend gains of 17% as whales buy more CRV tokens
|- Curve CRV observed an increase in accumulation by whales on exchanges like Binance over the weekend.
- Whale wallet purchases are likely to prop CRV price higher as investors scoop up 16 million Curve tokens.
- Supply of CRV held by large wallet investors climbed consistently in September, alongside declining selling pressure.
Curve DAO (CRV), the utility token of the Curve.fi DeFi protocol, noted an increase in purchase by large wallet investors. Whales flocked to centralized exchanges like Binance, to add CRV to their token holdings.
CRV price climbed 17% from Friday’s intraday low of $0.4372 to $0.5154, early on Monday. The DeFi token’s gains are likely sustainable, according to on-chain metrics and whale activity.
Also read: Arbitrum’s ARB price rallies after Chainlink CCIP mainnet launch
Curve CRV token accumulation by whales
Two large wallet investors have added 16 million CRV tokens worth $8.39 million, since September 24, as per data from crypto intelligence tracker, Spot on Chain. Whale identified as “0xefb,” added 5.78 million CRV tokens at an average price of $0.51, less than 24 hours ago.
Another large wallet investor “0xdf1,” added 10.3 million CRV at $0.53. Over the past four days, the address has accumulated nearly 20 million CRV tokens (approximately 19.56 million). Whale accumulation activity is considered bullish for an asset, when paired with a decrease in supply of the token on centralized exchanges.
In the case of Curve CRV, there has been a decline in supply held across centralized exchanges. Between September 1 and 25, CRV tokens in exchange wallets dropped from 156.47 million to 155.93 million, according to Santiment data. The decline is explained by the exchange outflows. Early on Monday, there was a net outflow of 15,950 CRV tokens.
Combined with the increase in supply held by whale addresses, up nearly 3% in September, these on-chain metrics paint a bullish picture for CRV price.
CRV supply on exchanges, exchange netflow and supply held by top addresses as % of total supply, as seen on Santiment
CRV price bearish take: Curve could tumble in six months
Michael Egorov, Curve founder, sold CRV tokens worth approximately $65 million to twenty counterparties in Over-the-Counter (OTC) deals. These handshake agreements required the parties to hold on to their CRV tokens for six months, effectively removing a large volume of Curve from circulation, until February 2024.
@HsakaTrades, popular crypto analyst and trader, tweeted about the handshake agreement, informing his 455,900 followers.
Another 25m CRV OTC'd.
— Hsaka (@HsakaTrades) August 5, 2023
Soon enough ~20% of the float will be split b/w ~25 entities who have a cost basis of $0.4
Handshake agreement lockups.
What an absolute masterclass in securing liquidity by Mich. pic.twitter.com/QziVt3Koeg
Another 25m CRV OTC'd.
— Hsaka (@HsakaTrades) August 5, 2023
Soon enough ~20% of the float will be split b/w ~25 entities who have a cost basis of $0.4
Handshake agreement lockups.
What an absolute masterclass in securing liquidity by Mich. pic.twitter.com/QziVt3Koeg
Crypto analyst @DumpWatcher notes a “mad rush” to sell CRV by retail investors, while institutions that participated in the deals, wait on the sidelines. The analyst highlights the possibility that once the six month time period is complete, CRV price could plummet, as both retail investors and institutions rush to shed their token holdings. This fuels a bearish narrative for the asset.
Two months ago the curve founder was close to liquidation
— Dump Watcher (@DumpWatcher) September 24, 2023
He panic sold $108.5m $CRV worth ~$65m to twenty counterparties via OTC
we investigate to see who has dumped CRV, bringing the price down 30% so far
and who has kept their word
click and read on to find out more
Two months ago the curve founder was close to liquidation
— Dump Watcher (@DumpWatcher) September 24, 2023
He panic sold $108.5m $CRV worth ~$65m to twenty counterparties via OTC
we investigate to see who has dumped CRV, bringing the price down 30% so far
and who has kept their word
click and read on to find out more
At the time of writing, CRV price is $0.5138 on Binance. The DeFi token yielded 12.92% gains to holders over the past month and upwards of 17% gains, over the weekend.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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