Curve (CRV) erupts 50% higher in a day amid renewed DeFi interest ๐จ This article is 4 years old...
Curve (CRV) erupts 50% higher in a day amid renewed DeFi interest
2 min read
Updated: Jan. 17, 2021 at 9:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The majority of decentralized finance (DeFi) coins have seen extremely strong rallies since the start of 2021.
Analysis by crypto-asset analyst Ceteris Paribus found that since the start of the year, like literally two weeks ago, the average DeFi large-cap has seen 75 percent gains. This includes coins such as Aave (AAVE), Compound (COMP), SushiSwap (SUSHI), and more.
One crypto-asset has largely been kept out of this rally, though: Curve DAO Token (CRV).
The native token of the Curve decentralized exchange was, at least before this week, still barely above its late-2020 lows. The narrative was that because there were yield farmers actively farming and dumping CRV, the cryptocurrency would remain suppressed for an extended period of time.
But this past week, CRV has begun to surge.
Curve (CRV) surges higher
According to CryptoSlate market data, CRV has ripped in excess of 125 percent higher in the past seven days, as can be seen in the chart below.
In the past day alone, Curve’s native Ethereum-based token has enjoyed a 50 percent rally. This makes it easily the top-performing crypto-asset in the top 100 by market capitalization.
CRV has surged to a $300 million circulating market capitalization and a $6 billion fully-diluted market capitalization.
This rally for CRV comes amid a number of fundamental trends:
- Curve has been releasing a number of new trading pairs to account for more esoteric assets that need markets. For instance, users can now trade stETH, Lido’s token represented Ethereum staked on ETH2, for ETH via Curve. The cryptocurrency was previously illiquid. Other markets include a swap market for Aave’s interest-bearing assets.
- Curve just rolled out a collaboration with Yearn.finance that will allow any user to deploy trading pools for more esoteric and long-tail assets to allow for more utility in DeFi.
- Trading volumes on the decentralized exchange have shot higher due to the introduction of new pools and as investors look to more easily trade between assets.
CRV’s move higher has meant that yield farmers have been able to earn more on the platform. As a result, there is now $2.15 billion worth of capital locked in Curve, far above where it was just months ago.
CRV’s rally underscores the ongoing repricing or re-rating taking place in the DeFi space.
As investor George Harrap noted, CRV joins 1INCH and SUSHI as top decentralized finance-focused assets that have doubled in the past week.
Things which the market has learned were massively undervalued from a week ago and have at least 2x'd:$CRV
$1INCH$SUSHI— George Harrap (@George_harrap) January 17, 2021
Curve DAO Token Market Data
At the time of press 9:29 pm UTC on Jan. 17, 2021, Curve DAO Token is ranked #76 by market cap and the price is up 47.28% over the past 24 hours. Curve DAO Token has a market capitalization of $321.8 million with a 24-hour trading volume of $589.23 million. Learn more about Curve DAO Token ›
Crypto Market Summary
At the time of press 9:29 pm UTC on Jan. 17, 2021, the total crypto market is valued at at $1.02 trillion with a 24-hour volume of $124.84 billion. Bitcoin dominance is currently at 66.32%. Learn more about the crypto market ›
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Curve DAO (Decentralized Autonomous Organization) is a decentralized platform built on the Ethereum blockchain that aims to provide a stable and efficient market for trading stablecoins.
Compound
$54.3030
Compound (COMP) is an ERC-20 asset that powers the community governance of the Compound protocol; COMP token-holders and their delegates debate, propose, and vote on changes to the protocol.
Aave
$164.104
Aave is an open source and non-custodial protocol enabling the creation of money markets.
SushiSwap
$0.78526
SushiSwap is an automated market-making (AMM) decentralized exchange (DEX) currently on the Ethereum blockchain.
1inch
$0.34121
1inch is a decentralized exchange (DEX) aggregator that sources liquidity from various exchanges and is capable of splitting a single trade transaction across multiple DEXes.