Curve Price Prediction as CRV Rallies on Hopes Hacker Will Return Funds – Here’s Why CRV’s Outlook Remains Murky

cryptonews.com:

Curve (CRV), the native token of the Curve Finance decentralized exchange (DEX) and the governance token of the Curve DAO (decentralized autonomous organization) rallied 7% on Friday to $0.61 after a hacker who stole millions in funds from the exchange and other decentralized finance (DeFi) protocols began returning funds.

The hacker, who drained over $50 million in funds from Curve Finance, Metronome and Alchemix on Sunday, has now returned $8.9 million to Alchemix, as per on-chain data presented by Etherscan.

While the hacker is yet to return funds to Curve Finance, the move to refund Alchemix is spurring hopes that funds will soon be transferred back to the DEX, which, prior to Sunday’s hack, had been regarded as a stalwart of the DeFi world.

But it is unclear whether a refund from the hacker can solve the major problem being faced by Curve Finance.

The hack, which was allegedly conducted by using an exploit in the Vyper programming language used by Curve (and other DeFi protocols), has dealt a devastating blow to confidence in the DeFi protocol, because it exposed a weakness that revealed DeFi investor funds not to be as secure as they once thought.

As a result, DeFi investors have yanked their crypto capital from the protocol – as per DeFi Llama, Curve Finance’s total value locked (TVL) was last at $2.7 billion, down from $3.7 billion prior to the hack.

The hack will likely deal lasting damage to investor confidence towards the protocol, which could hamper its future TVL growth, which could be a major headwind for the value of CRV.

Curve Finance issued a 6th of August deadline for the hacker to return the funds in exchange for a 10% cut and a promise that no criminal action will be pursued via an on-chain message.

If that