Curve Dao, a decentralized exchange operating on the concept of Automated Market Makers (AMM) to manage liquidity, has garnered attention for its focus on stablecoin trading. The platform rewards users who provide liquidity with inflation tokens, which are distributed based on liquidity gauges. These gauges track the amount of liquidity a user contributes and must be included in the gauge controller to receive CRV emissions. Curve operates on various chains, predominantly on Ethereum.
The CRV token, with a total supply of 2.1 billion, allocates 62% to the community and 30% to shareholders. This token serves as an incentive for liquidity providers and lending markets. The Curve Pool creation interface allows the creation of pools with diverse assets.
Curve witnessed a decline in net revenue to around $1.25 billion in May, marking a 9% decrease from the previous month. Additionally, the trading volume dropped by 27% to approximately $5.54 billion. Fee collection for Curve Dao amounted to over $1.46 million in May 2024, down by 26% compared to the previous month.
Curve DEX's Total Value Locked (TVL) has remained relatively stable around $2.06 billion since the beginning of 2024. On the other hand, LlamaLend, associated with Curve, has experienced a notable increase in TVL, reaching $162 million.
The CRV token price fluctuates, currently trading close to $0.4138 after a 45% decline over the past year. Despite recent dips, the CRV token price showed bullish signals on the daily chart. The price may find support around $0.35 and resistance near $0.5. The Relative Strength Index (RSI) for CRV is at 36, indicating oversold conditions with a bearish sentiment.
In conclusion, Curve Dao faces challenges with decreasing revenue and user activity. While the CRV token price has seen fluctuations, it may potentially recover in the future.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial or investment advice. Investing in cryptocurrencies or stocks carries inherent risks of financial loss.
