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Home Altcoins

Is The CRV Painful Dip Over? This Event In August Could Spark A Rally

June 18, 2024
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Is The CRV Painful Dip Over? This Event In August Could Spark A Rally
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CRV, the native token of the stablecoin decentralized exchange Curve Finance, has been dumping in over the last year or so. After last week’s plunge, the token fell by as much as 75% from March 2024 highs, a huge concern for token holders.

CRV Recovers, Adds 45% After Plunging

However, according to one analyst who took to X, the bottom could be in, arguing that favorable fundamental events in roughly two months could propel the token to as high as $2. CRV is changing hands at around $0.32, up 42% from last week’s lows.

CRV price trending upward on the daily chart | Source: CRVUSDT on Binance, TradingView
CRV price trending upward on the daily chart | Source: CRVUSDT on Binance, TradingView

 

Most importantly, prices are stabilizing, with the impressive follow-through of June 13. After the flash crash that day, prices fell to as low as $0.22.

Related Reading

However, what was encouraging was the long lower wick, pointing to welcomed demand by the close of the trading day. This push was clear the next day when prices closed higher, with bulls extending gains over the weekend.

Whether the June 13 plunge marked the end of CRV woes remains to be seen. For now, the sharp 45% recovery from last week’s lows and the expansion in Ethereum prices could create demand, further propelling CRV to the $0.40 mark.

Curve To Change Token Emission As Erogov’s Bad Debt Cleared

The analyst thinks something big is in the pipeline for Curve Finance as a protocol and CRV as the primary token priming platform. In mid-August, the token’s inflation rate would fall from 20.37% to as low as 6.34%. This reduction would be primarily because of the protocol’s shift to CRV distribution.

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From August 12, Curve will automatically cease allocating CRV to the core team for vesting. Instead, gauges will distribute the token directly to the community, drastically slashing inflation.

Curve gauges determine how CRV is distributed to various liquidity pools. Through gauges, Curve Finance remains decentralized. This is because token holders can now vote on how much the liquidity providers of a given pool can receive CRV as an incentive.

Related Reading

Besides the shift in CRV distribution, the liquidation of Michael Egorov’s position eliminates the issue of bad debt. Accordingly, Curve can not generate real revenue for CRV holders, drawing value.

Curve Finance TVL | Source: DeFillama
Curve Finance TVL | Source: DeFillama

According to the analyst, Curve could evolve to be a leading decentralized Forex market over the coming years. The protocol is one of the largest decentralized finance (DeFi) platforms. According to DeFiLlama, it commands a total value locked of over $2.2 billion.

Feature image from DALLE, chart from TradingView

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CRV, the native token of the stablecoin decentralized exchange Curve Finance, has been dumping in over the last year or so. After last week’s plunge, the token fell by as much as 75% from March 2024 highs, a huge concern for token holders.

CRV Recovers, Adds 45% After Plunging

However, according to one analyst who took to X, the bottom could be in, arguing that favorable fundamental events in roughly two months could propel the token to as high as $2. CRV is changing hands at around $0.32, up 42% from last week’s lows.

See also  Ethereum Breaks Out Of Descending Triangle Pattern – Fakeout Or Recovery Rally?
CRV price trending upward on the daily chart | Source: CRVUSDT on Binance, TradingView
CRV price trending upward on the daily chart | Source: CRVUSDT on Binance, TradingView

 

Most importantly, prices are stabilizing, with the impressive follow-through of June 13. After the flash crash that day, prices fell to as low as $0.22.

Related Reading

However, what was encouraging was the long lower wick, pointing to welcomed demand by the close of the trading day. This push was clear the next day when prices closed higher, with bulls extending gains over the weekend.

Whether the June 13 plunge marked the end of CRV woes remains to be seen. For now, the sharp 45% recovery from last week’s lows and the expansion in Ethereum prices could create demand, further propelling CRV to the $0.40 mark.

Curve To Change Token Emission As Erogov’s Bad Debt Cleared

The analyst thinks something big is in the pipeline for Curve Finance as a protocol and CRV as the primary token priming platform. In mid-August, the token’s inflation rate would fall from 20.37% to as low as 6.34%. This reduction would be primarily because of the protocol’s shift to CRV distribution.

From August 12, Curve will automatically cease allocating CRV to the core team for vesting. Instead, gauges will distribute the token directly to the community, drastically slashing inflation.

Curve gauges determine how CRV is distributed to various liquidity pools. Through gauges, Curve Finance remains decentralized. This is because token holders can now vote on how much the liquidity providers of a given pool can receive CRV as an incentive.

Related Reading

Besides the shift in CRV distribution, the liquidation of Michael Egorov’s position eliminates the issue of bad debt. Accordingly, Curve can not generate real revenue for CRV holders, drawing value.

See also  Ethereum Sees Net Outflows On Spot Exchanges—Is a Major Price Rally Coming?
Curve Finance TVL | Source: DeFillama
Curve Finance TVL | Source: DeFillama

According to the analyst, Curve could evolve to be a leading decentralized Forex market over the coming years. The protocol is one of the largest decentralized finance (DeFi) platforms. According to DeFiLlama, it commands a total value locked of over $2.2 billion.

Feature image from DALLE, chart from TradingView

Tags: AugustCRVDipEventPainfulrallySpark

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

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Tezos 2023 Outlook: An Overview of Tezos (XTZ)

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UK risks regulating NFTs the wrong way, says Mintable CEO

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Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

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How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

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The Best BNB Play-to-Earn Games You Can’t Miss in 2024!

The Best BNB Play-to-Earn Games You Can’t Miss in 2024!

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Why more Web3 gaming projects are switching to casino-style games

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Analyst predicts ‘Bitcoin to $100K’ thanks to U.S liquidity set-up

Analyst predicts ‘Bitcoin to $100K’ thanks to U.S liquidity set-up

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Litecoin Bear Flag Could Cause 41% Crash To This Level, Analyst Explains

Litecoin Bear Flag Could Cause 41% Crash To This Level, Analyst Explains

January 4, 2024

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