Cryptocurrency data platform CoinGecko recently highlighted a surge in search interest for various altcoins, with Core (CORE) topping the list. This attention, however, coincided with a dramatic market event. The native token of Core DAO, CORE, crashed approximately 50% in value within a 24-hour period, according to official statements from the project.
The crash was triggered by a series of large sell orders that hit the market in a short span. These heavy sell-offs created intense downward pressure, which quickly spilled into the lending ecosystem, specifically affecting the Colend protocol tied to the Core network. As prices fell, leveraged positions on Colend dropped below required collateral levels, forcing automatic liquidations. This created a feedback loop: more liquidations led to more selling pressure, accelerating the decline in a classic liquidation cascade.
The Core Foundation and the Colend team confirmed the protocol functioned as designed, classifying the event as "market-driven" rather than a technical failure. They stated that most of the leveraged positions have been cleared and they are actively monitoring the market to maintain orderly operations.
On-chain data fueled speculation about the catalyst, with observers identifying a wallet that allegedly sold nearly 3 million CORE tokens, reducing its holdings to almost nothing. This aligns with the team's explanation of "large market sells" sparking the cascade. The event raised concerns about transparency, with some community members questioning potential insider activity after the project locked its comment section following the crash.
Crypto analyst MOON JEFF framed the event as part of a recurring market structure cycle, comparing it to past crashes like Mantra's, where leverage and liquidity gaps trigger similar cascades across different projects.
