Crypto Market Cap Nears $1 Trillion Mark Despite Price Losses

Key Points:

• Crypto market fall, with ether down 6% in 24 hours and bitcoin down 4%. The total market cap has shrunk to $1.06T from highs of $1.34T in April.
• CRV token worst hit, down 12% in a day and 25% in a week due to founder’s large lending position.
• Traders capitalize on tether’s 0.2% fall below the U.S. dollar due to an imbalance on the main Curve 3pool.

The crypto market has experienced a further dip in prices, with major coins like bitcoin and ether recording losses.

Ether, for instance, has dropped by 6% in the last 24 hours and is currently trading at $1,630, which represents an 11% loss over the last seven days. Similarly, bitcoin has recorded a 4% decline within the same period, and it has fallen by 6% over the week, now changing hands at $24,900.

The market has experienced a bearish trend, which has caused the total crypto market capitalization to shrink to just $1.06 trillion today. This is a significant drop from the highs of $1.34 trillion recorded in April. Although the market capitalization went below the $1 trillion mark in March, it hasn’t stayed below it for a prolonged period since the end of 2022.

Interestingly, the CRV token of the decentralized exchange Curve has been the worst-hit token in the top 100 by market capitalization. This token has experienced a decline of 12% in the last 24 hours and 25% over the last week. The downturn in the token’s value is suspected to be related to concerns surrounding the large lending position taken by Curve’s founder, Michael Egorov, which is in danger of being liquidated.

This concern is due to the fact that the position represents approximately 50% of the supply of CRV tokens, which is a sizeable amount. Consequently, Gauntlet, a firm that specializes in DeFi risk management, has advised lending platform Aave to take measures to reduce the risk of bad debt should this position be liquidated. The fear is that the paper value of the collateral might not be realized if it makes up such a large portion of the token’s supply.

The concerns about the CRV token, the market has also experienced concerns today about tether. As at the time of this writing, tether has fallen 0.2% below the price of the U.S. dollar. This is due to an imbalance on the main Curve 3pool, which has caused traders to capitalize on the arbitrage opportunity. It is hoped that the market will recover soon, and the crypto industry will experience an upward trend in the nearest future.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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