Curve DAO Founder Michael Egorov Nearly Liquidated as CRV Takes Heavy Losses

Key Takeaways

• CRV has fallen by more than 30% since Friday after a weekend altcoin crash.
• Curve DAO founder Michael Egorov came close to liquidating 371 million CRV of DeFi loan collateral.
• While Egorov managed to avoid liquidation, others weren’t so lucky.
• So far in April, nearly $128 million worth of crypto collateral has been liquidated on DeFi lending platforms. 

CRV is one of the biggest losers of a crypto market crash, with the token’s value dropping more than 30% since Friday, April 12. 

At its lowest point, CRV dipped below $0.40 on Saturday. This brought Curve DAO founder Michael Egorov close to liquidating 371 million CRV used as collateral for stablecoin loans.

Weekend Crypto Crash Causes Mass Liquidations

In Egorov’s case, the Curve founder managed to avoid liquidation by providing extra collateral and repaying some of his loans.

However, others weren’t so lucky.

According to the Block data , so far in April, nearly $128 million worth of crypto collateral has been liquidated on DeFi lending. That’s more than the sum of all liquidations in the previous seven months. 

For instance, since Friday, more than $24 million has been liquidated on Aave alone.

Of this, the vast majority was ETH, reflecting a widespread preference for using less volatile assets as loan collateral. As Michael Egorov’s case demonstrates, there is good reason to shy away from borrowing against altcoins.

Alt Coins Take a Beating

As is usually the case during periods of high market volatility, alt coins have seen their value plummet much more severely than Bitcoin and ETH. However, NFTs have been hit even harder.

Alongside CRV, some of the coins that crashed the hardest over the weekend include IMX and Bitcoin Cash. Both these cryptos sustained heavy losses during a double-dip crypto crash on Friday and Saturday.

Meanwhile, several memecoins, including Shiba Inu (SHIB) and DogWifHat (WIF), are down more than 30% since last week.

Despite making a mild recovery on Monday, altcoin markets remain bearish and there could be more choppy waters ahead for tokens like CRV.