Curve Finance and the adoption of its native token CRV have seen some resistance in the past couple of months. Nevertheless, CRV daily volume is seen to have peaked above the $1 billion mark in the past 24 hours, equating to an increase of as much as 897.23% and is showing no signs of stopping.
Here’s a quick glance at how the crypto is performing of late:
- CRV TVL spikes triggered by an increase in supply
- Daily volume peaking at $1.08 billion overnight
- Price up by 3.62%
The spike is said to be the highest so far in 2023, and investors love what they’re seeing. More so, the increase in CRV active addresses has been increasing. There has also been a hike spotted in Curve Total Value Locked (TVL) due to a boost in supply.
. @CurveFinance has recorded a trading volume of $1.07 billion over the past 24 hours, marking a new high for the year. Only two other days in its history have seen a higher volume, and they both occurred immediately after the collapse of FTX pic.twitter.com/esHTGaMg5L
— DefiLlama.com (@DefiLlama) February 14, 2023
Gains Triggered By Regulatory Decision On BUSD Minting
The gains are said to be triggered by the recent court regulatory decision of putting a halt on Binance USD (BUSD) minting. The stablecoin was declared as an unregistered security and in turn, stablecoin issuer Paxos was restrained from minting new tokens.
The last time that CRV experienced this spike in trading volume was in the middle of the controversial FTX collapse. There was so much chaos and meltdowns happening in crypto projects that many investors resorted to engaging in DeFi projects instead.
Another thing, the increase in CRV trading volume could also have been brought about by investors switching their attention to crvUSD. Curve Finance is currently dubbed as the largest decentralized platform which houses different stablecoins, allowing on-site farming.
Curve Finance Spikes In Volume Of Active Wallet Addresses
Interestingly enough, Curve Finance is also in the process of developing crvUSD, its algorithmic stablecoin. Curve’s dollar is said to be powered up by the AMM algorithm which is designed to continuously sell collaterals as well as liquidate in order to minimize risks.
According to CoinMarketCap, CRV price is up by 5.7% in the last 24 hours or trading at $1.10 at the time of writing. This appears to be in complete contrast to the general market sentiment that is showing some consolidation.
Crypto total market cap at $997 billion on the daily chart | Chart: TradingView.com
On the other hand, CRV’s network growth has been quite sluggish despite the incredibly energetic atmosphere it currently has. More so, there is a spike spotted in terms of traction, especially for first-time users.
On the brighter side, there is increased activity by both short- and long-term holders as observed on the Curve Finance network.
There is also a marked increase in active wallet addresses which is notably the highest since October 2022.
-Featured image from Phemex