Home Curve Why Curve DAO Token Tripled in a Week

Why Curve DAO Token Tripled in a Week

Curve DAO Token's recent triple-digit surge is fueled by crypto-friendly policies, growing user activity, and a recent collaboration with Yearn Finance.

Why Curve DAO Token Tripled in a Week iBase Trading.
iBase Trading Crypto News

Curve DAO Token’s recent triple-digit surge is fueled by crypto-friendly policies, growing user activity, and a recent collaboration with Yearn Finance. The whole DeFi sector has been on a strong rise for the previous two weeks. It has many of the top market cap tokens rallying by double and triple digits. The governance token CRV from Curve DAO has been a remarkable performer, rising from a low of $0.54 on January 11 to a high of $1.78 on January 17.

A new relationship with the Yearn.finance (YFI) ecosystem, encouraging regulatory developments in the United States, and an increase in participation have all contributed to the platform’s recent jump in volume and price.


Yearn.finance Collaboration

Yearn.finance inventor Andre Cronje tweeted a gif stating Curve.fi delivers permissionless pool construction in partnership with Yearn.Finance on Jan. 14, resulting in a noticeable increase in trading volume for CRV. 3 clicks to create stablecoin pools Crv.finance.

Collaborations with YFI have tended to cause sharp breakouts in DeFi token prices. This is similar to the days when any partnership or integration announcement from Chainlink (LINK) would bring a rapid rise in volume and price.

Take, for example, Cream Finance and SushiSwap, which both increased by more than 100 percent following the announcement of Yearn.finance’s cooperation.

Following Cronje’s tweet, CRV’s trading volume increased from $59 million to $350 million, and a follow-up tweet on Jan. 15 provided an update on the collaboration’s progress, stating the update of crv.finance; permissionless pool creation added, allowing anyone to create a curve pool that can swap to DAI, USDC, or USDT.

This boosted the price to $1.23 and increased the 24-hour trading volume to $478 million.

Crypto-Friendly Regulation Creates an Opportunity for Curve

The new stablecoin statement from the United States Office of the Comptroller of the Currency is a second reason why CRV has more than tripled since the beginning of 2021.

Banks will be able to undertake bank-permissible operations, such as payment activities, using new technologies like as INVNs and related stablecoins, according to the OCC.

Banks will soon be able to execute stablecoin transactions. They will also provide custody services for those assets using multiple blockchain platforms. Therefore, necessitating the creation of a trustworthy stablecoin ecosystem and oracle provider.

The Curve DAO platform is one of the biggest decentralized stablecoin exchanges. It uses an automated market maker (AMM) to handle liquidity. Thus, if this transformation occurs, more users may turn to the platform as their preferred alternative.

The engagement of a cryptocurrency project’s community is a critical aspect of its success. This represents in CRV by measures like total value locked (TVL) on the platform and daily transaction volume.

Curve also benefited from the revelation on January 17 that cross-asset swaps via Synthetix.io are now available. This sparked a new wave of high-volume trading. Moreover, CRV achieved a new high of $1.78 just hours after the announcement.

Future collaborations like this will likely hail with similar enthusiasm as the total value locked on Curve reaches new highs and daily volume climbs.

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

Previous articleAC Milan Launch ACM Fan Token & Joins Sport Crypto
Next articleA Beginner’s Guide to DAI (2021)
Steven Alvarez has 10 years of experience trading various assets. He was first introduced to cryptocurrency in 2011 and was immediately hooked. Aside from analyzing charts, Steven enjoys running and cycling.