Analysis: Why CRV and CREAM Prices Pumped on 24/09/2023
CRV Price Pump: Whale Accumulation
On 13/09, the price of CRV fell below $0.4, reaching $0.38, a level lower than the OTC price at which founder Michael Egorov sold to maintain his loan positions. This led investors to fear a potential sell-off by the funds that purchased CRV.
However, by 24/09, the CRV price began to recover. The main reason behind this surge is a whale with the address 0xDf1 withdrawing large amounts of CRV from Binance. On-chain data from Arkham Intelligence shows this address withdrew over 19 million CRV (approximately $9.78 million) from 21/09 to 24/09.
CRV withdrawals from Binance. Source: Arkham Intelligence
After each withdrawal, the whale staked the CRV on Convex for storage, earning significant rewards.
CRV staked into Convex. Source: Arkham Intelligence
Amount of CRV staked on Convex and rewards. Source: DeBank
Additionally, another whale address, 0xEfb, withdrew 5.78 million CRV (equivalent to $3.02 million) from Binance.
0xEfb CRV withdrawals. Source: Etherscan
The CRV price increased over 27% from 21/09 following these significant withdrawals from the exchange.
CRV price over the past 24 hours. Source: CoinMarketCap (25/09/2023)
CREAM Price Surge: Token Unstake
Starting 23/09, the 3-year staking contract for CREAM tokens from Cream Finance matured, releasing 241,415 CREAM (worth $4.27 million) to investors. This contract distributed CREAM to 19 different addresses.
Cream Finance unstake contract. Source: Arkham Intelligence
Interestingly, before the contract executed the token release, the CREAM price had already surged by over 70%, from $12 to more than $20.
CREAM price before and after unstake. Source: CoinMarketCap (25/09/2023)
Among the receiving addresses, the one belonging to machibigbrother received the largest portion, 215,236 CREAM (worth $3.8 million). The CREAM tokens were transferred through two addresses, 0x020 and 0x7fb, with 0x7fb sending all CREAM to 0x020.
CREAM transfers. Source: Arkham Intelligence
All the CREAM received by machibigbrother was restaked into Cream Finance under a new 4-year contract. Currently, this address holds a total of 326,072 CREAM (worth $7.43 million).
CREAM restaked into Cream Finance. Source: Arkham Intelligence
In contrast to machibigbrother, some addresses either kept their CREAM or transferred a total of 5,408 CREAM (worth $99,200) to Binance, Gate.io, or DEXs.
List of addresses receiving CREAM. Source: Spot On Chain
