The price of Convex Finance (CVX) saw a sharp decline on Friday morning as selling pressure mounted amid a significant dump from a whale.
Data from CoinGecko showed CVX price at $3.15 at the time of writing, down sharply from intraday highs of $3.44 reached just hours earlier.
While the cryptocurrency still traded roughly 53% up on the 14-day time frame, its price decline has nearly wiped off the past week’s gains after CVX fell 5%.
Convex Finance’s trading volume also dipped, falling more than 30% at the time of writing to about $47 million. Meanwhile, market cap dropped to $290 million.
Whale dumps CVX tokens
According to Spot On Chain, a wallet linked to the Fantom Foundation dumped more than 357K Convex Finance tokens on June 28.
The action resulted in the huge downside pressure that had CVX tokens dropping from highs reached in early Asian trading hours.
Per the on-chain insights platform, the said Fantom Foundation wallet sold 357,108 Convex Finance (CVX) tokens for $1.15 million in USDT.
Notably, the wallet used $12 million in March 2022 to buy 436,000 CVX at approximately $28 per token. This wallet, which was one of the whales in the CVX market, has sold these tokens over the past two years at the average price of only $3.38.
That translates to about $1.49 million total sale, which Spot On Chain says is equivalent to a total loss of $10.7 million, or -87.8% for the whale.
Convex Finance TVL drops
As the price of CVX dropped to support levels near $3.00, Convex Finance also witnessed a slight dip in the total value locked (TVL).
Data shows that decentralized exchange (DEX) and automated market maker protocol’s TVL is currently at $1.24 billion, down from $1.26 billion a day earlier.
Convex Finance TVL stood at over $1.57 billion at the start of June, which means the market struggles over the past month for crypto has had an impact.
At its peak in June 2022, the TVL of Convex, a yield protocol whose competitors include Pendle (PENDLE), was over $20 billion.
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