Yesterday, Curve Finance suffered a DNS exploit on their website. The blockchain and all related smart contracts are safe (Twitter Announcement).
But DO NOT go to their website until this is fixed or your wallet could be immediately drained.
Unsurprisingly, the $CRV token sold off about 7%. Is this a dip buying opportunity?
1 Pre-Hack Strength
$CRV was one of the only tokens to rise early with $BTC before the reset with China on tariffs. Despite the sell-off, it’s still up 17.5% over the last 30 days.
It maintains excellent tokenomics, with a 1.68 circulating supply to FDV ratio (anything under 2 is structurally sound).
And $CRV remains the critical protocol for stablecoin swaps.
2 Curve Is Growing
$CRV remains the primary incentive token for Convex, yEARN, and StakeDAO.
One reason for continued growth is that $CRV managed to launch the stablecoin crvUSD, which has about $160m in market cap currently.
The protocol also developed a new partial liquidation mechanism for stakers that preserves more capital in adverse events. This encourages longer-term stalking.
3 Local ATH Estimates
Assessing all-time-highs (ATHs) is tricky. You need to take into account coin dilution since that period. Rather than look at the absolute all-time high, then, it makes more sense to look at the local high.
Back in December, $CRV ran up to $1.225, which represents a 71% price gain from current levels. If our current bull market environment continues, you might expect a retest of that “top.”
4 Final Take
The dip wasn’t deep because the fundamentals weren’t touched.
$CRV still powers stablecoin swaps and remains core to DeFi. Once the site’s fully redirected, any panic might fade fast.
If ETH and “DeFi dino” narratives return, this could be the last good entry.
NFA. DYOR.
Happy trading!
-Sebastian Purcell, PhD
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