Crypto prices make further losses as market cap approaches $1 trillion

Quick Take

  • Crypto prices have slid further today, following larger losses made earlier this week.

Crypto prices have fallen further in the last 24 hours with large cap coins like bitcoin and ether in the red.

The price of ether is down 6% in the last 24 hours and is currently trading at $1,630 — solidifying losses of 11% over the last seven days. Meanwhile, bitcoin has dropped 4% in this timeframe and fallen by 6% over the week, now changing hands at $24,900.

With the market heading south, the total crypto market cap has shrunk to just $1.06 trillion today — from highs of $1.34 trillion in April. While it dipped below the $1 trillion mark in March it hasn't spent a prolonged period of time below it since the end of 2022.

The CRV token of the decentralized exchange Curve is the worst-hit token in the top 100 by market capitalization. It’s down 12% in the last day, and 25% in the last week. This downturn may be related to concerns surrounding the large lending position taken by Curve’s founder, Michael Egorov, which is in danger of being liquidated.

The loan position has caused concerns because it represents such a large portion — around 30% — of the supply of CRV tokens. As a result, Gauntlet, which specializes in DeFi risk management, has recommended that lending platform Aave make adjustments to reduce the risk of bad debt were this position to be liquidated. The worry is that the paper value of the collateral might not be realized if it's such a large portion of the token's supply.

The market has also faced concerns today about tether, which has fallen 0.2% below the price of the U.S. dollar. This is due to an inbalance on the main Curve 3pool. Traders have already started capitalizing on this artbitrage opportunity.

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