- The total value locked on Curve quickly rose to pre-FTX levels.
- The price and market cap of the native token CRV are at risk of a pullback.
according to a report on DeFi blue chips from on-chain analytics company OurNetwork, curve financing [CRV] remained the largest decentralized exchange (DEX) after Total Value Locked (TVL), underscoring that the protocol remains the top choice for liquidity providers.
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Issue #155 checks the chain for #DeFi Blue Chips 💙
🔹@LidoFinance
🔹@Uniswap
🔹@chainlink
🔹@CurveFinance
Follow the Wizards: @_LewisHarland_ @Derekmw23 @ejwallach
Data from: @DuneAnalytics @tokenterminal @TheBlock__ @Platoon_Digital @DefiLlama
https://t.co/qrhKozIkRS
– OurNetwork (@ournetwork__) February 3, 2023
Read those from Curve Finance [CRV] Price prediction 2023-24
The results were corroborated by DeFiLlama, which showed 34% TVL growth over the past month. After a vertical fall spurred by the FTX Contagion, Curve’s TVL rose steadily to pre-collapse levels.
Source: DeFiLlama
Why Curve is a Big Deal
Curve’s growth aligns with the broader trend of increased interest in DEXs following the FTX collapse, which has eroded investor confidence in centralized exchanges (CEXes). Daily trading on DEXes has doubled in the last month, Data shown by Dune Analytics.
Source: Dune Analytics
Curve’s growth could also correlate with the launch of Grandpa [DJED], Cardanos [ADA] overcollateralised stablecoin. Unlike other automated market makers (AMM), Curve’s liquidity pools consist primarily of similarly behaving assets as stablecoins. The arrival of another stablecoin may have given Curve’s LPs a boost.
Additionally, Curve Finance has taken steps to expand its liquidity pool by adding more to teach to the platform. The net effect of all of the above factors may have propelled Curve’s adoption.
Market conditions are subject to change
Although CRV lagged behind Uniswap [UNI] Critical to market cap, the minutes’ market cap/TVL ratio was below 1 at press time, as of Data by CoinMarketCap. This indicated that the network was still undervalued and that there was room for further growth.
Source: Token Terminal
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The increase in market cap was driven by the uptrend of the native token CRV, during which its price almost doubled. However, the rally ended on Jan. 19 and since then the price has been range-moving with resistance at $1.1.
The Relative Strength Index (RSI) has broken out of overbought territory and has consistently made lower highs and lower lows. This signaled that the price could break out of the range to the downside. The Awesome Oscillator (AO) was red, supporting the ideal of a pullback.
Source: TradingView CRV/USD
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