Curve (CRV) jumps to high for the year after a 168% increase. This week, crypto investors turned their focus to the dog-themed coin meme when Shiba Inu (SHIB) and Dogecoin (DOGE) exploded in trading volumes, causing SHIB to consistently hit highs.

Traders are currently debating whether the launch of the first Bitcoin Exchange Traded Fund (ETF) can usher in the next phase of the bull market or whether or not the rally in coin memes is a meaningful signal.

While SHIB, DOGE and Samoyedcoin gave the week a new note, there are a number of other tokens that have grown in equal measure and have stronger fundamentals. For example, the Curve protocol’s native CRV token rose to an annual high earlier this week.

Data from TradingView shows that CRV price has risen 168% since hitting a low of $ 2.05 on Sept. 26, to an annual high of $ 5.51 on Oct. 28, when the block closed its 24-hour Trading volume soared 89% to $ 1.3 billion.

CRV / USDT. 4 hour chart | Source: TradingView

Some reasons for CRV’s uptrend can be traced back to the fact that most of the circulating supply of CRV is locked down, the DeFi protocols “curve warfare” competing for CRV deposits, and the overall value of CRV’s increased curve -Protocol.

Staking out takes time

A major factor behind the CRV rally is Curve’s incentives for holders to lock their tokens on log for extended periods of time and earn staking rewards.

Because of these incentives, the report says more than 347.8 million CRVs, or 88.75% of circulating supply, are currently tied to the Curve protocol with an average test time of 3.68 years. data of curve.

“Oh, and 89% of all CRVs in circulation are locked up for about 3.7 years. So if the price breaks out and people want to get into the green candles, there will be a big supply shock that will drive the price up even faster. ”

Convex Finance leads the “war on curves”

Another reason for the uptrend in CRV price is the ongoing curve war between protocols like Yearn.finance and Convex Finance vying for the most attractive returns in an attempt to entice CRV holders to lock their tokens in their vault.

It’s been 160 days @ConvexFinance started. During this time, 69.3 million CRV were farmed.

At the current rate, $ CRV is bred at 433k per day … well $ CVX -Emissions will be in 70.9 days at 100 m. 80% complete $ CRV farmed …. which means January 3rd will be a REALLY GOOD day pic.twitter.com/7fphyoK48c

– CryptoCondom (@crypto_condom) October 24, 2021

“It has been 160 days since Convex Finance was launched. In which 69.3 million CRV were grown (farm). At the current rate, CRV is being bred at $ 433,000 per day … so if 100 million CRVs are cultured, CRV emissions will reach 80% in 70.9 days. which means that January 3rd will be a really great day. “

This has resulted in a supply restriction and could accelerate further, especially now that popular DeFi platforms like Abracadabra.money are also increasing their share of CRV deposits.

Essentially, every protocol “bribes” CRV holders by offering them attractive returns in order to take advantage of the governance granted by staking CRV and hold VeCRV to vote for a higher stablecoin allocation to the aforementioned DeFi protocol. Many have referred to this process as “buying votes”.

The TVL of Curve soars

TVL in Curve continues to grow as well, and the platform is home to some of the largest stablecoin pools in the DeFi ecosystem.

Data from Defi Llama shows TVL on Curve is currently hitting a record high of $ 18.84 billion, making it Curve TVL’s second largest protocol.

Total value locked on curve protocol | Source: Defi Lama

The rise in TVL is mainly due to Curve’s success in integrating many leading Layer 1 and Layer 2 protocols with an active DeFi ecosystem, including Ethereum (ETH), Avalanche (AVAX), Harmony (ONE), Polygon ( MATIC), xDAI (OFFER) and Fantom (FTM).

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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