CRV hits a low, derivative protocol CVX surges over 100% in a single day, concept rotation? Short squeeze effect?

Curve founder's significant CRV collateralized borrowing liquidated, although CRV price has rebounded, it remains at a relatively low point in the past year; coupled with discussions on the founder's successful exit again, the Curve supporters are feeling a bit down.

Curve founder faced a large liquidation of CRV due to heavy borrowing, although the CRV price has rebounded, it remains at a relatively low point in the past year; coupled with discussions around the founder's successful exit once again, the Curve supporters are feeling a bit down.

However, the staked token protocol within the Curve system, Convex Finance CVX, has gained attention in recent times for incorporating Curve, Frax, fx, and Prisma's Curve ecosystem staked tokens. After reaching a historical high of 68 in January 2022, the current price is now hovering around $4, experiencing a 90% surge today.

Curve founder Michael Egorov believes the $140 million liquidation stemmed from the theft of UwU Lend.

Facing the sudden surge of CVX, Curve supporters believe it is a rotation of concepts, and CVX inherently possesses solid market logic, bringing better returns to the rewards of the mentioned protocols.

Media personality Wu suggests that this is likely a short squeeze effect, as Bybit's CVX short funds rate has reached -1.5%, meaning that shorts have to pay funding rates to longs, which, when annualized, amounts to 1642.5%.