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Why Is Curve DAO (CRV) Price Rising Today?

source-logo  coingape.com 24 September 2023 13:10, UTC

The cryptocurrency market observed an impressive 14% surge in the price of Curve DAO (CRV) on Friday. This surge in the value of CRV has garnered significant attention, mainly due to the actions of a mysterious whale wallet. The whale has been actively acquiring and staking millions of CRV tokens, primarily from the world’s largest cryptocurrency exchange, Binance.

Whale Moves Millions in CRV

These substantial price gains were highlighted on Saturday by Look Onchain, a reputable crypto analytics firm, after closely monitoring the developments surrounding this whale wallet.

As per the firm, this enigmatic wallet has acquired an impressive 10.44 million CRV tokens, valued at approximately $4.7 million, from Binance. These acquisitions occurred over the past 30 or so hours, marking a significant influx of capital into the CRV market.

“The price of CRV increased ~10% today, probably due to this fresh wallet buying CRV in large quantities from Binance,” the firm wrote.

Notably, what distinguishes this wallet’s actions is not just the sheer volume of tokens acquired but also its decision to stake a substantial portion of the acquired CRV tokens on Convex. This strategic move also raises questions about the wallet’s intentions and its potential influence within the Curve DAO Token ecosystem.

It is worth noting that CRV holds more than just digital value as it’s also the governance token for CurveDAO, the decentralized autonomous organization behind Curve Finance. CRV token holders wield voting rights within the ecosystem and can earn rewards in the form of CRV token fees by providing liquidity to Curve Finance’s diverse pools. Thus, the recent shift of CRV tokens from Binance to a non-custodial wallet reflects growing confidence in the token.

CRV Price Recovery Ignites Hope

CRV faced significant setbacks in Q3 2023, witnessing a steep 61% year-to-date decline. This sharp drop was exacerbated by broader market contractions and regulatory hurdles, including actions initiated by the Securities and Exchange Commission (SEC).

The token further faced another blow following a notable security breach in late July 2023. In this incident, an attacker exploited a vulnerability within an outdated Vyper compiler version, leading to $62 million in losses from Curve Finance’s liquidity pools.

Nevertheless, despite these hurdles, CRV’s recent rally and the whale wallet’s activity have generated considerable interest in the crypto community, indicating renewed confidence in the token’s potential.

At press time, Curve Dao Price was trading at $0.47, marking a 2.68% increase in the last 24 hours. According to crypto analyst Nebraskangooner, the price could potentially surge into the $0.50-$0.55 range if it maintains support at the crucial $0.45 level, which it appears to be heading for a potential retest.