Curve DAO on-chain data shows that large investors are taking advantage of the current price drop in Curve DAO (CRV) to accumulate CRV tokens, signaling whale confidence in performance the future of CRV.
On June 13, CRV experienced a 20% decline, triggering the liquidation of the loan positions of CRV founder Michael Egorov and another investor, valued at 20.60 million respectively. USD and 3.3 million USD.
This liquidation event created an opportunity for some “whales” to purchase CRV tokens at a discounted price. Over the past two days, data from LookOnChain shows that four wallets purchased 42.4 million CRV tokens worth $14.9 million.
Whales bought the dip after the $CRV liquidation!
In the past 2 days, 4 wallets withdrawn 42.4M $CRV($14.9M) from #Binance.https://t.co/XAsnClJkV9https://t.co/1kBDMLSisChttps://t.co/InKUcMnG4Whttps://t.co/0P1TWfwWBh pic.twitter.com/gl9QHUfyvj
— Lookonchain (@lookonchain) June 19, 2024
The activity of the CRV “whale” reflects optimism
Santiment’s Supply Distribution Index shows that holdings of “whales” of between 10 million and 100 million (blue line in the chart below) CRV tokens have decreased from 465.23 million to 363.14 million from June 12 to 14, and then increased to 460.17 million from June 14 to 18. Meanwhile, wallet holdings ranged from 1 million to 10 million (yellow line) and from 100,000 to 1 million (red line) CRV tokens increased from 339.85 million to 396.58 million and from 111.21 million to 127.07 million during the same period.
This development shows that the first group of “whales” were victims of the sell-off event, and then they bought back CRV tokens at a discount. In contrast, the second and third wallet groups took advantage of the opportunity to accumulate more CRV.
CRV supply distribution chart | Source: Santiment
Santiment’s Daily Active Address Index, which tracks network activity over time, is also in line with the bullish outlook from a technical perspective. An increase in this index indicates greater use of the network, while a decrease in addresses indicates a decrease in demand for the network.
In CRV’s case, Daily Active Addresses jumped to 2,480, the highest level in the past five months.
This increase shows that demand for the CRV network is increasing, which could lead to an increase in the price of CRV. In fact, the token price has recovered nearly 50% from its low to $0.33 at the time of writing.
Number of CRV Daily Active Addresses | Source: Santiment
Although on-chain data indicates that CRV whales are buying in the midst of the recent price drop, supply of CRV tokens on exchanges is increasing and development activity around the token remains low. . These factors suggest that investors should not expect an immediate price increase for the CRV.
Chart of CRV supply on the exchange and development activity | Source: Santiment
You can see CRV prices here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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