Analysis by crypto-asset analyst Ceteris Paribus found that since the start of the year, like literally two weeks ago, the average DeFi large-cap has seen 75 percent gains. This includes coins such as Aave (AAVE), Compound (COMP), SushiSwap (SUSHI), and more.
The native token of the Curve decentralized exchange was, at least before this week, still barely above its late-2020 lows. The narrative was that because there were yield farmers actively farming and dumping CRV, the cryptocurrency would remain suppressed for an extended period of time.
But this past week, CRV has begun to surge.
Curve (CRV) surges higher
According to CryptoSlate market data, CRV has ripped in excess of 125 percent higher in the past seven days, as can be seen in the chart below.
This rally for CRV comes amid a number of fundamental trends:
- Curve has been releasing a number of new trading pairs to account for more esoteric assets that need markets. For instance, users can now trade stETH, Lido’s token represented Ethereum staked on ETH2, for ETH via Curve. The cryptocurrency was previously illiquid. Other markets include a swap market for Aave’s interest-bearing assets.
- Curve just rolled out a collaboration with Yearn.finance that will allow any user to deploy trading pools for more esoteric and long-tail assets to allow for more utility in DeFi.
- Trading volumes on the decentralized exchange have shot higher due to the introduction of new pools and as investors look to more easily trade between assets.
CRV’s move higher has meant that yield farmers have been able to earn more on the platform. As a result, there is now $2.15 billion worth of capital locked in Curve, far above where it was just months ago.
— George Harrap (@George_harrap) January 17, 2021
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