Major cryptocurrencies experienced a decline on Monday evening after the Securities and Exchange Commission (SEC) launched a lawsuit against internet marketer Richard Heart, along with his projects Hex, PulseChain, and PulseX. Additionally, the market grappled with the consequences of the recent exploit on the stablecoin exchange Curve.
CRV, the token associated with Curve Finance’s DAO, has experienced a decline of 10.3%, reaching 56 cents.
Another contributing factor is the lending position held by founder Michael Egorov on the Aave lending protocol. Egorov currently has a substantial $168 million lending position secured by CRV, which is approaching the liquidation point. If the position is liquidated, the consequent rapid price declines could trigger a series of cascading liquidations, leading to a flood of liquidated assets in the market.
Currently, the global crypto market capitalization stands at $1.18 trillion, a 0.78% decrease in the last day.
Stocks saw a modest increase on Monday as Wall Street began a busy earnings week, capping off a successful month. The S&P 500 inched up by 0.15%, while the Nasdaq Composite experienced a 0.21% rise.
Edward Moya, Senior Analyst at OANDA believes that Curve Finance hack is “a blow for Ethereum’s DeFi ecosystem, but not likely to trigger a massive selloff for Bitcoin.”
Crypto analyst Benjamin Cowen said Ethereum may not be ready to shine just yet, supported by historical data.
Cowen analyzes Ethereum’s historical average monthly return on investment (ROI) and finds that Q3, or the summer months, are generally not the most favorable times to accumulate or hold ETH.
“The one-year timeframe shows you that December and January are best, on average. The worst month was July. If you think about it, think about where ETH was last July. It wasn’t at a very different price than what it is today, I mean you’re talking pretty much the same price, maybe plus or minus a couple of hundred dollars but that’s where we were last July. And you can see there’s this sort of lull in even the one-year ROI buying in that April, May, June July timeframe but as you get further out into Q4, it tends to go up.”
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Arnab Nandy
“What’s the latest with Florida Man?”
Get news, handpicked just for you, in your box.