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Curve DAO Token (CRV) Price Prediction – What’s Next For $CRV

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Curve Finance CRV
Curve Finance CRV

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The CRV/USD price chart outlook seems promising despite the recent Curve Finance hack. This comes despite the current stall in Bitcoin (BTC) price and the overall lack of momentum in the market.

Notably, the current state of the market has left investors susceptible, with many looking for budding projects to make a profit. This is why BALD developers from the Coinbase Layer- 2 token found it easy to rug-pull investors, making away with almost $70 million in Ethereum (ETH).

Curve Finance Hack – Explained

On July 30, Curve Finance experienced a hack due to a vulnerability in Vyper. This is the programming language used in certain aspects of their system.

The exploit in Curve Finance pools has raised significant concerns about risks in the decentralized finance (DeFi) space. Multiple protocols, including Curve, JPEG, Alchemix, and Metronome, were affected, resulting in substantial losses.

According to DefiLlama, the hack saw Curve Finance Total Value Locked (TVL) decline by almost 50%, moving from $3.26B to $1.67B within just 2 days.

CRV DeFILlama
CRV Total Value Locked

DeFi Protocols Face Potential Bad Debt Following Curve Finance Exploit

One primary concern is the potential bad debt Aave faces if Curve Finance CEO Michael Egorov cannot repay his loans. Egorov holds a $100 million loan backed by 427.5 million $CRV tokens, which is nearly half of the circulating supply.

The platform’s stability is at risk, with a 10% drop in the $CRV value.

Additionally, concerns are mounting about Hatom Protocol facing similar situations due to the hack’s fallout. The hacker utilized Egorov’s wallet to make transactions, selling large amounts of $CRV to institutions. These institutions include Cream Finance, DWF Labs, and Machi Big Brothers, even selling $5 million worth of $CRV to Justin Sun.

Large Holdings Pose Risks

Furthermore, Egorov’s loans on Aave and Fraxfinance add to the overall DeFi risks. His $305 million CRV-backed loan on Aave faces potential liquidation with an approximately 33% drop in $CRV price. Furthermore, his holdings on Fraxfinance carry an astronomical interest rate that could lead to eventual liquidation, regardless of the $CRV price.

CRV Price Analysis Following Curve Finance Hack

Overall, Curve Finance suffered a devastating hack of over $42 million when hackers exploited a vulnerability in the Vyper programming language. Although the situation was brought under control by Curve developers, significant funds were drained. The hack temporarily impacted the Curve token, but it shows signs of recovery now.

The four-hour chart for the CRV/USD trading pair displays positive indications following the recent hack of Curve Finance. Notably, the attack caused a 34% decline in the cryptocurrency’s value. As developers took control and addressed safety concerns, the CRV token began to recover, reclaiming approximately 26% of its losses.

CRV price
TradingView: CRV/USDT 4-hour chart

Technical indicators support this improvement, with the Relative Strength Index (RSI) treading toward the middle line. This indicates a potential bullish momentum. Additionally, the Awesome Oscillators (AO) histograms are turning green, suggesting increased buying pressure.

The price may encounter initial resistance at the 38% Fibonacci Retracement level. Nevertheless, there is a possibility of breaking through this barrier and further ascending toward the $0.8 level.

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