• Curve Finance’s [CRV] price rose to $0.61 following the founder’s decision to deposit into Aave.
• The token had been in a two-week decline, dropping 33%.
• On-chain analysts reported that Curve’s health improved shortly after the decision.
CRV Price Recovers After Founder Deposits Into Aave
Curve Finance’s native token CRV saw a significant recovery on June 17th, rising to $0.61 from its two-week decline of 33%. This was largely due to the founder Michael Egorov’s decision to deposit 38 million CRV tokens into the Aave protocol in order to reduce the liquidation effect of loans he had taken out.
CRV Protocol Health Improves
On-chain analysts reported an improvement in Curve’s protocol health shortly after Egorov’s decision. He also deposited 79.4 million CRV ($45.65 million) into Abracadabra, 46.65 million CRV ($26.82 million) into Fraxlend, and 16 million CRV ($9.27 million) into Inverse for additional loan collateralization purposes. As a result, funding rates dropped sharply and traders held more bearish positions than longs, leading to a rise in CRV prices despite negative market sentiments surrounding the news of Egorov’s deposits into Aave.
FUD Around Action Causes Market Uncertainty
Despite the increase in prices following Egorov’s action, many market participants were still uncertain about whether this signified an end to Curve Finance’s tumbling state or not due to FUD (fear, uncertainty and doubt) circulating around it at the time. Realistic or not, some speculated that Egorov was attempting to manipulate the market with his deposits while others believed he was simply trying to stay afloat in light of liquidity issues faced by stablecoins as well as other DeFi protocols at large during this period of time.
Rise In Prices Despite Negative Sentiments
However, it seems that despite negative sentiments surrounding this news and speculation around it, Curve Finance was able to bounce back thanks largely due to its founder taking proactive steps towards averting potential disaster before it happened by depositing funds as collateral for loans taken out on various protocols such as AAVE and Fraxlend among others mentioned above which led to a drop in funding rates as well as bearish positions being held rather than long ones thus resulting in an upward surge of prices for their native token CRV which ultimately allowed them regain lost ground after their initial fall from grace..
Overall it can be seen that although there were initially negative sentiments surrounding Egorov’s decisions regarding his deposits into various protocols including Aave and Fraxlend among others mentioned above , ultimately they paid off allowing Curve Finance recover from its initial tumble off thanks largely due to timely intervention on part of its founder who took proactive steps towards averting potential disaster before it even happened by depositing funds as collaterals for loans taken out on these protocols leading eventually leading them bounce back albeit with somewhat diminished values compared what they were prior first descent .