Curve drops 28% in 2024 despite surging TVL: What’s going on?

• Curve’s TVL has climbed by double digits since the year began.
• CRV’s value has dropped by 28% since the 1st of January.

Curve Finance [CRV] has seen a double-digit rally in its total value locked (TVL) since the year began.

This growth is significant, as it comes long after the protocol’s TVL plummeted to a two-year low following the July 2023 reentrancy hack. 

After the hack, on the 31st of July 2023, Curve’s TVL had plunged to its lowest level since January 2021, according to data from DefiLlama. 

AMBCrypto also reported that as the TVL decline continued, Curve lost its spot as one of the top ten decentralized finance (DeFi) protocols ranked by TVL.

Curve so far this year

According to data from DefiLlama, Curve’s TVL at press time was $2.12 billion, marking a 16% surge since the year began. 

This uptick is partly due to the activity of crypto solutions provider Trident Digital, which set up a liquidity pool on Curve Finance as part of its efforts to increase liquidity and use of PayPal’s PYUSD stablecoin across DeFi platforms. 

PayPool. Probably nothing https://t.co/omiM2PThDa pic.twitter.com/oJlzrzkQVg

— Curve Finance (@CurveFinance) January 10, 2024

Regarding user activity on the protocol, the monthly count of active addresses has risen by 15% in the last 30 days. According to data from Token Terminal, so far in 2024, Curve’s active user count has totaled 13,611.

Due to the rise in user count, the amount made from transaction fees has increased as well.

Information from the same data provider showed that Curve has recorded $1.5 million in fees since the year began, marking a 7% growth in the last 30 days.

Further, from these fees, Curve has pocketed a revenue of $911,040 in the last month. According to Token Terminal, this represents a 6% hike in network revenue.

Traders shun CRV

The value of Curve’s native token CRV has declined since the year began. At press time, the token exchanged hands at $0.43, dropping by 28% since the year began, according to data from CoinMarketCap. 

Source: CoinMarketCap

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An assessment of the token’s price movements on a daily chart revealed that its demand has plummeted significantly.

At press time, its Relative Strength Index (RSI) and Money Flow Index (MFI) were 31.54 and 13.21, respectively, showing that selling pressure significantly exceeded token accumulation. 

Source: TradingView