CRV’s amazing 150 percent surge since May 23 is fueled by falling Ethereum gas fees. This includes the introduction of Convex Finance, and the DeFi sector nearing a potential bottom.
While Bitcoin’s price plunged to $30,000 on May 19, DeFi tokens and protocols took a hit. While BTC has entered what some experts call a compression phase, the total wealth locks in DeFi. The value of many of the sector’s tokens has yet to recover to pre-market crash levels.
Due to reduced Ethereum gas fees, the debut of Convex Finance, and the DeFi sector beginning to find a bottom, Curve DAO token (CRV) is one of the few DeFi tokens that has seen a big recovery over the previous two weeks.
According to data from Cointelegraph Markets Pro and TradingView, CRV has risen 55 percent. It went up from a low of $1.76 on June 1 to an intraday high of $2.76 on June 3. With a 250 percent increase in 24-hour trading volume.
CRV Holders Flock to the Convex Finance Debut
Convex Finance (CVX), which the design is for the Curve Protocol allows for something like the trade of similar assets such as stablecoin to stablecoin transactions. It is one of the main drivers of CRV’s recent value and velocity increases.
Convex has quickly garnered a large user base since its formal introduction on May 17. Thanks to yields as high as 52.16 percent. Some analysts have speculated that the protocol is competing Yearn.finance for CRV-related deposits.
As per Defi Llama, the total value locked (TVL) on the protocol has topped $2.3 billion in the two and a half weeks since its inception. With stakes earning $4.3 million in total remuneration.
Both Convex Finance and Yearn.finance rely significantly on CRV to run their platforms, and CRV supply has dropped as a result of the increased activity. As investors scramble to stake tokens for the best potential return, this may have helped to inflate the CR price.
Curve Finance and the wider DeFi ecosystem may also profit from the recent drop in gas fees on the Ethereum (ETH) network. Which previously prevented many retail traders from conducting the simple approval and confirmation transactions required to stake and claim DeFi protocol revenues.
Lower costs have enabled a larger spectrum of customers to re-engage with their favorite DeFi protocols, and Curve has reaped the benefits.
Pre-Breakout, the VORTECSTM Indicator Flashed
Prior to the latest price gain, VORTECSTM data from Cointelegraph Markets Pro began to detect an optimistic prognosis for CRV on May 31.
Exclusive to Cointelegraph, the VORTECSTM Score is an algorithmic assessment of history and present market circumstances. It is based on a variety of data factors such as market mood, trading volume, recent price fluctuations, and Twitter activity.
The VORTECSTM Score for CRV has been showing bullish values for the past week. With a high of 77 on May 31 late in the day. This was about 15 hours before the price rose by 55 percent in the next 48 hours.
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