Ethereum, Dogecoin and Convex Finance are down from the trends of the last few days. In this article we will try to find out what is happening.
Price action in the general cryptocurrency market is bearish. Ethereum and Dogecoin fell 2,1% and 3,2% respectively in the past 24 hours. These downward moves appear to be driven by Ethereum's high-profile hack sidechain Ronin, a significant development in both the size and scale of this "robbery". Dogecoin is doing what it does best by providing a high volatility vehicle for investors to trade on short-term market movements, leveraging platforms such as Bitcoin system.
Convex Finance (CVX) saw a larger decline of 4,4% over the same time frame, driven by what appears to be a "profit withdrawal" after a rather dramatic increase in the past two weeks. Convex Finance has seen its CVX tokens roughly double since mid-March on bullish expectations about this network's ability to increase returns on Curve Finance pool stakes, as well as new incentives for veCRV holders.
So what's going to happen now?
It is important to maintain these recent 24-hour moves for these tokens in the context of some rather impressive bullish moves over the past couple of weeks. Most investors would agree that some profit withdrawals are healthy for these tokens, so they can resume their long-term gear higher. As a result, perhaps there is nothing to see here, at least for investors with a longer 24-hour outlook.
That said, this significant Ethereum sidechain hack can cause investors some concern. Security concerns remain a key talking point for cryptocurrency bears, who are likely encouraged by this news today.
It remains to be seen whether the cryptocurrency market will wipe out this hack, as it did with the previous $ 320 million Solana Wormhole bridge hack in February.
However, investors who look to the cryptocurrency industry as a safe place to park long-term funds are now reminded of some (potentially costly) growing pains that can impact investor portfolios in the short term.