Is The CRV Painful Dip Over? This Event In August Could Spark A Rally
18 Juni 2024 - 3:00AM
NEWSBTC
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.
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: Metrics
Signal Bitcoin Price Increase – But When Is Anyone’s Guess 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: Ethereum Foundation Moves $64.4 Million
Worth Of ETH, Is This A Dump? 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. 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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