Curve clearing crisis alleviated? Cryptocurrency market surges, BTC briefly surpasses $30,000, CRV rebounds by 10%

Curve Finance suffered a vulnerability that resulted in a total loss of over $50 million across various protocols, causing a general decline in the cryptocurrency market. DeFi projects were hit even harder. Curve's founder, Michael Egorov, triggered a liquidation crisis by pledging a large amount of CRV tokens. However, he managed to obtain financial support by selling CRV tokens through over-the-counter transactions multiple times, temporarily averting the liquidation crisis. The cryptocurrency market also saw a general rise today, with Bitcoin once again approaching the $30,000 mark.

Curve Vulnerability Incident Summary

6/16｜Curve Founder Borrowing Incident: Over $100 million borrowed, all collateralized with CRV and significant withdrawals

7/31｜Curve Vulnerability Affects Ecosystem Protocols: Curve suffers millions in losses due to attack, protocols and related risks impacted all at once!

8/1｜Curve CRV Founder Liquidation Crisis: Sun Yuchen provides funding, high reward CRV pool, gradually repaying Aave/FRAX/MIM

8/1｜Curve Founder Loan-to-Value Ratio Rises: Mahjong Brother Huang Licheng buys $1.5 million worth of CRV at a discount, locking up 3.75 million CRV

Cryptocurrency Market Surges, BTC Approaching $30,000

Bitcoin, on August 1st, dropped to $28,585 during the Curve Founder Liquidation Crisis but reached a high of $30,047 today.

In the above image, the alleviation of the Curve CRV liquidation crisis has caused a surge in most DeFi protocols such as algorithmic stablecoin protocol Frax Finance, Maker, and Curve.

Maker MKR has doubled in value since July, with a coin price of $1,339 returning to May 2020 levels.

However, some DeFi projects have yet to fully recover from the Curve attack. The 7-day price changes are as follows:

• Aave AAVE: -0.5%

• Curve DAO CRV: -17.6%

• Convex Finance CVX: -12.8%

• Synthetix Network SNX: -5.9%