Curve's CRV token turns volatile as exchange balance hits record high

2022/11/22 14:35

According to Coindesk, CRV, the governance token of decentralized exchange Curve, has turned volatile amid a surge in the number of coins held at centralized trading platforms. The number of CRV held in centralized exchange wallets has increased by 70% to a record 148.91 million this month, with the tally surging by 46% in the past 24 hours alone, per data tracked by Glassnode. In other words, the number of CRV available for liquidation on centralized exchange has substantially increased. Investors typically transfer coins from their wallets to exchanges when intending to sell their positions. Developments in the CRV market are notable, as Curve, which specializes in stablecoin swaps, is the biggest source of liquidity in decentralized finance. That means any issue at Curve can have broader market implications. Markus Thielen, head of research and strategy at crypto services provider Matrixport, said: "There is less interest from users to provide their tokens into liquidity pools and even lock them up in terms of total value locked." "Genesis and DCG are adding to the risk of a fire sale for individual tokens," Thielen added.

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