Curve has broken past its yearly high.
Increased demand for the CRV token and low circulating supply are driving up the price.
Currently, over 89% of all CRV tokens are locked up in DeFi protocols.
Share this article
Curve has broken past its April highs, fueled by increased demand for CRV tokens and a low circulating supply.
Curve Breaks Out
CRV tokens are in high demand.
The DeFi DAO token is climbing higher, breaking past its yearly high of $4.66 achieved in April. The CRV token is currently trading at $4.91, up 75% over the past week.
USD/CRV chart. Source: CoinGecko
Curve Finance, the issuer of CRV tokens, is a DeFi protocol specializing in like-asset swaps such as stablecoins and wrapped assets. Users can provide liquidity to Curve’s swap pools to earn CRV tokens rewards, which can then be deposited into other DeFi protocols to generate additional yield.
This year a whole sub-DeFi ecosystem has formed around yield optimization for CRV tokens. Both Yearn Finance and Convex Finance offer attractive yields to users willing to lock up their CRV tokens in vaults for up to four years.
The competition between these two protocols, sometimes called “The Curve Wars,” has rapidly consumed a large portion of the total CRV token supply. Additionally, a new “DeFi 2.0” protocol, abracadabra.money, allows users to borrow its MIM stablecoin using Curve Liquidity Provider tokens as collateral, further reducing the CRV supply.
Over 89% of all CRV tokens are currently locked up in various DeFi protocols, with an average vesting time of 3.68 years. With the supply shrinking and demand staying constant, the CRV token is rapidly increasing in value. Recently, the supply of CRV tokens has become disinflationary, meaning that more tokens are being locked up than new ones distributed.
CRV and vested CRV chart. Source: @banteg via Dune Analytics
Since May’s market crash, DeFi protocol tokens have underperformed compared to the market average. While Layer 1s such as Solana and Avalanche have enjoyed significant gains, Aave and Yearn finance’s tokens have remained stagnant. Whether Curve’s current price action is the start of a DeFi revival in the market remains to be seen.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.
This news was brought to you by ANKR, our preferred DeFi Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Yearn and Convex Are Competing for Curve Tokens
Optimizing yield on Curve Finance’s pools is Yearn Finance’s bread and butter, but newcomer Convex Finance is gaining rapid traction as the two DeFi protocols fight for Curve’s liquidity provider…
A Guide to Yield Farming, Staking, and Liquidity Mining
Yield farming is arguably the most popular way to earn a return on crypto assets. Essentially, you can earn passive income by depositing crypto into a liquidity pool. You can think of these liquidity…
Ethereum Favorite Curve Finance Heads to Fantom, xDai
Curve Finance, a decentralized exchange popularly used for trading stablecoins, has launched on Fantom and xDai’s growing ecosystems. Curve’s Multi-Chain Future Curve Finance has released an identical version of its…
DeFi Project Spotlight: Abracadabra.Money, DeFi’s Magic Money Sp…
Abracadabra.Money is a lending protocol that allows users to deposit interest-bearing assets as collateral to borrow a stablecoin called Magic Internet Money that can be used across multiple blockchains. Abracadabra.Money…