Measuring the Impact of Boosted Pools on Balancers [BAL] market trend

• Balancer’s TVL fell after the introduction of Boosted Pools before spiking briefly
• However, Balancer (BAL) remained flat recently

More than a year ago, Balancer created its Boosted Pool to attract liquidity to the protocol by providing additional incentives for investors. How balanced has this made the protocol and its native token – BAL?

– Read the Balancer (BAL) Price Prediction 2022-2023

The balancer strengthened the pool

Balancer Boosted Pool is a feature of the Decentralized Finance (DeFi) protocol – Balancer. The Balancer Boosted Pool allows Liquidity Providers (LPs) to deposit two types of assets in one pool – the Base Asset and the Boost Asset. The base asset typically has lower volatility, while the boost asset has higher volatility. The Boost asset is used to generate additional returns for liquidity providers.

According to a recent report by Messari, Balancer has developed boosted pools to improve LPs’ capital efficiency. Depositors could benefit from trading commissions and interest thanks to the pools. LPs get $0.50, Decentralized Autonomous Organization (DAO) treasury gets $0.175 and veBAL lockers get $0.325 for every dollar paid in fees.

What impact did this action have on Balancer’s locked total? (TVL)

TVL balance increased?

Since the introduction of the Boosted Pools, the trend at TVL has been more of a downtrend than an uptrend, according to statistics from DefiLlama. The chart showed TVL has fallen from nearly $2 billion to $1 billion since the pools were established. The TVL was about $1.28 billion at the time of writing, with a slight increase since January.

Source: Defillama

The movement of BAL remains stagnant

Balancer (BAL) price has been relatively flat for the past few weeks. In fact, looking at the price action on the daily time frame showed no discernible uptrend or downtrend. At the time of writing, the asset’s value had fallen almost 1% and was trading at around $6.35.

Source: TradingView

After notable gains in January, it failed to clear the $7.5-$7.9 resistance. Moreover, its support has remained stable around $6.19 over the same period. Due to its weak price action, it has fallen below the neutral line of the Relative Strength Index (RSI). The RSI showed a significant downtrend for BAL, trending below 40.

– How much are 1,10,100 BALs worth today?

Less active addresses and…

According to Santiment, the number of active addresses on the network has also decreased. 30-day active addresses on Balancer have been declining over the past few weeks.

At press time there were 2,912 active addresses, up from over 4,000 in January.

Source: Santiment

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