- Crypto-friendly regulations, increased user activity and a recent collaboration with Yearn.Finance are the main reasons for Curve DAO Token’s recent triple-digit rally.
Crypto-friendly regulations, increased user activity and a recent collaboration with Yearn.Finance are the main reasons for Curve DAO Token’s recent triple-digit rally.
The rise in popular altcoin
Over the past two weeks, the entire DeFi industry has been in a strong uptrend.
Curve DAO’s management token CRV rose from $ 0.54 on January 11 to $ 1.78 on January 17.
Three reasons for this recent increase in volume and price for CRV are due to a new collaboration with the Yearn.finance (YFI) ecosystem, positive regulatory developments in the US, and an increase in engagement that increases total value locked to the platform.
The noticeable increase in CRV transaction volume started on January 14th after Yearn.finance creator Andre Cronje tweeted the following gif:
— Andre Cronje (@AndreCronjeTech) January 14, 2021
Similar to the days when any partnership or integration announcement from the Chainlink (LINK) saw an instant increase in volume and price, collaborations with YFI tend to lead to sharp breaks in DeFi token prices.
CRV’s transaction volume increased from $ 59 million to $ 350 million following Cronje’s tweet, resulting in a significant increase in price.
This development increased the 24-hour transaction volume to $ 478 million and brought the price to $ 1.23.
Crypto-friendly regulation creates opportunity for Curve
A second reason why CRV has more than tripled since the beginning of 2021 has to do with the recent stablecoin announcement from the United States Currency Supervisory Office.
According to the OCC, banks will “be able to use new technologies, including INVNs and related stablecoins, to perform functions authorized by the bank, such as payment activities.” Banks will soon be able to use a variety of blockchain platforms to trade stablecoin and provide custody services for these assets. This means that a reliable stablecoin ecosystem and oracle provider is required. Curve is the perfect fit for this job.
Increased user activity and total locked-in value strengthens the foundations
The key factor in the success of any cryptocurrency project is the involvement of its community. For CRV, this is represented by metrics such as total value (TVL) locked on the platform and daily trading volume.
Data from Defipulse show that TVL in the Curve has achieved a noticeable increase since January 4th, after remaining relatively stable throughout December.
Curve.finance also shows a steady increase in the total daily volume traded on the platform, as shown by Dune Analytics in its chart below.
Another positive development for Curve was the announcement on January 17 that “cross-asset swaps are now active via Synthetix.io”. This started another wave of high trading volume hours after the CRV hit $ 1.78, the 2021 high.
The price is likely to rise further as the total value locked in the Curve reaches new peaks and daily volume rises.