The Bitcoin and altcoin market experienced a shakeup on April 14, with Solana (SOL) and Curve (CRV) being hit particularly hard. According to CoinGlass data, SOL’s price fell 11% and its open interest (OI) fell 21% to $1.62 billion. This mirrored a broader market decline, with leading altcoins such as XRP and Dogecoin experiencing similar declines.
Harsh moves in Solana
Despite the crisis, some traders remain optimistic. Returning after a year of silence, well-known trader GCR Classic saw the decline as a “good opportunity to scale into high-conviction tokens.” Crypto entrepreneur Kyle Chasse echoed this sentiment and predicted a potential 20-30% rise in altcoins by Monday. However, analysis firm Glassnode softens the bullish outlook. They note that previous phases of market euphoria have witnessed steeper price declines, often exceeding 25%. With only two minor declines of 10% since the all-time high on March 5, the current market may be poised for a deeper correction.
Solana’s woes extend beyond just price action. Recent network congestion issues have forced many crypto projects to postpone launches. While the developers will reportedly fix the issue by April 15, these technical difficulties raise questions about the scalability and reliability of the network. The current situation surrounding Solana poses a dilemma for investors. The price drop offers a potential entry point for those bullish on the project’s long-term prospects. However, broader market weakness and recent network issues are raising concerns about the token’s near future.
Altcoin Curve’s founder is at risk of liquidation
The turmoil in the crypto market extends beyond Solana. The plight of Curve founder Michael Egorov highlights the inherent risks associated with excessive debt. As whales take advantage of the opportunity to buy from the bottom, a major risk emerges in the DeFi market. As CRV fell to $0.42, Curve founder Michael Egorov faced liquidation of his lending positions. Michael committed a total of 371 million CRV (approximately $156 million) through 5 addresses on 6 lending platforms to borrow $92.54 million in stablecoins.
Currently the health rate has dropped to around 1.1 and there is a risk of liquidation. According to on-chain analyst Yu Jin, Egorov pledged a significant amount of CRV tokens (Curve’s native token) across multiple lending platforms to borrow the stablecoin. This aggressive leverage strategy leaves their positions vulnerable to further price declines in CRV. Especially Egorov, cryptokoin.com As we reported, it had to resort to a large OTC sale last year to avoid liquidation due to a similar situation.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.