Yes, it's damage. Appears the 5 took a hit long, long ago and circulation gradually softened its appearance, and the accumulation of crud has obscured detail as well. If the hit occurred last Saturday, the mark would be very fresh looking.
Is it possible that a small bit of grease was it the top of the 5 when struck? I can still see almost all of the top and it tapers down to the field, If it were damage, would we be seeing some of the metal that would have been displaced?
Heaven's no with the cleaning - just leave the coin as is.......... especially a pencil erasure is abrasive and turn the copper horribly bright where you use it! Leave the cleaning to copper pots and pans.
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