Curve (CRV) Price Plummets 28% Despite Trident Digital’s Boost
Curve Records a 28% Decline Despite Rising TVL: What’s Behind It?
Despite a continuous increase in Total Value Locked (TVL), the cryptocurrency Curve (CRV) experienced a price drop of 28% in 2024. What is the reason for this development?
Curve’s Development in 2024
Curve Finance, the native protocol of CRV, saw a double-digit increase in its TVL since the beginning of the year. This increase is remarkable as it occurred long after the protocol’s TVL plummeted to a two-year low following the Reentrancy hack in July 2023.
After the hack, Curve’s TVL crashed to its lowest level since January 2021. As the decline in TVL continued, Curve lost its place among the top ten decentralized finance protocols (DeFi), measured by TVL.
The Current Situation of Curve
At the time of reporting, Curve’s TVL stood at $2.12 billion, representing a 16% increase since the beginning of the year. This increase is partly due to the activities of crypto solution provider Trident Digital, which set up a liquidity pool on Curve Finance as part of its efforts to increase the liquidity and usage of PayPal’s stable currency PYUSD on DeFi platforms.
The monthly number of active addresses on the protocol has increased by 15% in the last 30 days. Since the start of 2024, Curve has recorded an active user count of 13,611. Due to the increase in user numbers, transaction fees have also risen. Data shows that Curve has recorded $1.5 million in fees since the beginning of the year, representing a growth of 7% in the last 30 days.
Traders Avoid CRV
The value of Curve’s native token, CRV, has dropped since the beginning of the year. At the time of reporting, the token stood at $0.43, representing a 28% decline since the beginning of the year.
You should read that too:
An assessment of the token’s daily price movements shows that demand for it has significantly decreased. At the time of reporting, the Relative Strength Index (RSI) and the Money Flow Index (MFI) stood at 31.54 and 13.21 respectively, indicating that sell pressure significantly exceeds token accumulation.
Conclusion
Despite the increase in TVL and active user numbers, the price of the CRV token has seen a significant decline since the beginning of the year. This suggests that despite the positive developments in the protocol, traders are avoiding the token. It remains to be seen how the situation will develop in the future.
Sources: DefiLlama, Token Terminal, CoinMarketCap, TradingView.
Advertising transparency