curve financing [CRV]: Despite monotonous price action, there is hope for a recovery

curve financing is an automated market making platform primarily designed to host liquidity pools containing similarly behaving assets, primarily stablecoins or packaged versions of similar assets. Simply put, it is a decentralized exchange (DEX) for stablecoins. The governance token for the DEX is considered a Curve DAO Token (CRV).

With a Total Value Locked (TVL) of $7.82 billion at the time of writing Data by DefiLlama showed that the Curve Finance Protocol TVL has steadily decreased since May 8th. With a TVL of $17.49 billion on May 8, the protocol has since lost over 50% of its TVL, ranking 3rd in the list of DeFi protocols with the largest TVL.

During the same period, the CRV token also began a steady price decline. Over the past month, what else do we know about the protocol and its governance token CRV?

The price is on a downward curve

With a TVL of $7.82 billion at the time of writing, Curve held over 7% market share of the total $102.04 billion TVL of all DeFi protocols.

Its token, CRV, has also seen its own share of the decline. With the index priced at $1.22 a month ago, the token is down 15% since then. At the time of writing, the price was $1.04 per CRV token. In the last 24 hours, the price has fallen by 9%. Trading volume has been seen peaking at 31% over the past 24 hours, showing increased proliferation at press time.

Source: CoinMarketCap

The Relative Strength Index (RSI) for the CRV token marked a point at 56 on May 4, above the neutral index of 50. However, as bears took over the market, the RSI soon corrected. Over the past month, the token has struggled to repel the bears, with its RSI positioned below the neutral 50 level in oversold regions. At press time, the RSI for the token was 35.

Similarly, the Money Flow Index (MFI) for the token was positioned below the neutral point of 50 for most of the same period. After hitting a high of 65 on May 5th, the MFI corrected and has since shown increased bearish activity. At press time it was fixed at 49.69 in a down curve.

Source: TradingView

Within the period under review, the market cap of the CRV token also saw a 7% drop.

Down on all pages

On-chain analysis revealed that some key metrics tracking the growth of the CRV token saw a few hits over the past month. On the social front, data from the chain showed a decline since May 27. The token’s social volume peaked at 364 on May 27. It has since declined, posting over 90% losses as of press time. Likewise, social dominance peaked at 0.419% on May 27th. At the time of writing, this had fallen by 56%.

Source: Santiment

The development activity of the CRV token has also been affected since May 19. With a high of 9.74 recorded on the day, this metric is down 8% from 8.93% at the time of writing.

Source: Santiment

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