- Lookonchain and Supply Distribution data shows that whales bought tokens as CRV price fell sharply.
- On-chain data suggest that CRV’s active addresses are increasing, signaling higher demand ahead for the network.
- Investors should be cautious about increasing Supply on Exchanges and declining Development Activity.
Curve DAO's on-chain data shows that large-wallet investors leverage the current dip in Curve DAO (CRV) price to accumulate CRV tokens, indicating whales' confidence in CRV's future performance.
CRV experienced a 20% price crash on June 13, triggering the liquidation of CRV founder Michael Egorov's and another investor's DeFi lender positions valued at $20.60 million and $3.3 million, respectively.
This liquidation event allowed certain whales to acquire CRV tokens at a discounted price. Over the last two days, data from LookOnChain indicates that four wallets bought 42.4 million CRV tokens valued at $14.9 million from Binance.
Whales buy the dip after the $CRV liquidation!
— Lookonchain (@lookonchain) June 19, 2024
In the past 2 days, 4 wallets withdrew 42.4M $CRV($14.9M) from #Binance.https://t.co/XAsnClJkV9https://t.co/1kBDMlSisChttps://t.co/InKUcMnG4Whttps://t.co/0P1TWfwWBh pic.twitter.com/gl9QHUfyvj
CRV's whale activity reflects optimism
Santiment’s Supply Distribution metric shows that whales holding between 10 million to 100 million (blue line in the chart below) CRV tokens first dropped from 465.23 million to 363.14 million from June 12 to 14, and then raised to 460.17 million from June 14 to 18. Meanwhile, wallet holdings of 1 million to 10 million (yellow line) and 100,000 to 1 million (red line) CRV tokens surged from 339.85 million to 396.58 million and 111.21 million to 127.07 million, respectively, in the same period.
This development shows that the first cohort of whales could have fallen prey to the capitulation event, and after this, they bought CRV tokens again at a discount. In contrast, the second and third sets of wallets seized the opportunity and accumulated CRV at a discount.
%20[11.36.46,%2019%20Jun,%202024]-638543817166099951.png)
CRV Supply Distribution chart
Santiment’s Daily Active Addresses index, which helps track network activity over time, aligns with the bullish outlook. The rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.
In CRV’s case, Daily Active Addresses have spiked to 2,480, the highest in the last five months.
This surge indicates that demand for the CRV network is growing, which could lead to a rise in CRV's price. Actually, the token’s price is increasing by 5% on Wednesday to $0.3512 at the time of writing.
%20[11.30.26,%2019%20Jun,%202024]-638543817689841908.png)
CRV Daily Active Addresses chart
Despite on-chain data indicating that CRV whales are purchasing amidst the recent price dip, the Supply of CRV tokens on exchanges is increasing, and the development activity surrounding this token has remained low. These factors suggest investors should not expect an immediate price rally for CRV tokens.
%20[12.49.41,%2019%20Jun,%202024]-638543818047693902.png)
CRV Supply on Exchange and Development Activity chart
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