With a breathtaking $24 billion in total value locked (TVL), CurveFinance, long heralded as the apex of decentralised finance, now resides desolately in 10th place, a mere shell of its former splendour. Conversations have been sparked by the recent failures among both cryptocurrency fans and business analysts. The potential causes of Curve’s severe fall become apparent upon closer inspection.
Many CurveFinance customers will remember August for being a memorable month. A malicious attack occurred during that month, which had a significant negative impact on TVL. Curve had a respectable TVL of over $3 billion prior to the cyberattack. But the fallout from the breach was disastrous, harming the platform greatly and undermining user confidence.
https://x.com/DeFi_Made_Here/status/1713308237129236654?s=20
When it was at its peak, CurveFinance led DeFi and outperformed its competitors with an extraordinary $24 billion+ TVL. To put the recent collapse into perspective, CurveFinance was still able to retain a TVL of almost $6 billion even when Ethereum (ETH) was only worth $800. This information highlights the severity of the downturn and shows that the platform’s issues go beyond simple market fluctuations.
DefiLlama’s pooled TVL data presents a gloomy picture. Curve’s fall from grace has been rapid and terrible after he once led the pack. The formerly unstoppable platform has now been surpassed by a number of competing DeFi systems, which have improved upon its ability to negotiate the turbulent crypto market.
Many observers think Curve’s road to recovery is difficult, if not impossible, given the severity of the setbacks and the accompanying controversy. Once destroyed, trust is difficult to rebuild. Furthermore, because to the fierce competition in the DeFi market, customers have a wide range of options available to them, making Curve’s climb back to the top all the more difficult.
