DeFi tokens and protocols took a heavy blow on May 19 when Bitcoin price fell to $ 30,000, rebounding to pre-market levels.
Curve DAO token (CRV) is one of the few DeFi tokens that has bounced back sharply in the past two weeks due to lower Ethereum gas fees, the launch of Convex Finance, and the DeFi sector starting to bottom out .
Data from Cointelegraph Markets Pro and TradingView show that the CRV has risen 55% since June 1, rising from a low of $ 1.76 on June 1.
The introduction of Convex Finance is attracting CRV owners
One source of the sudden spike in price and momentum for CRV is Convex Finance (CVX), a Curve Protocol optimizer that enables the exchange of similar assets such as stablecoin for stablecoin transactions.
Introduction of Convex Finance! A new platform developed by Defi Natives to simplify your curve boosting experience and maximize your returns.
Read more here! https://t.co/65Dog7RdqE
– Convex Finance (@ConvexFinance) April 15, 2021
Since its official launch on May 17, the Convex Protocol has quickly gained a sizeable user base with returns of up to 52.16%. Some analysts have suggested that the protocol challenges Yearn.finance for CRV-related deposits.
Data from Defi Llama shows that in the two and a half weeks since Convex Finance launched, the protocol’s Total Value Locked (TVL) has exceeded $ 2.3 billion, with the protocol’s stakers having total sales of US $ 4.3 million. Have made dollars.
Both Convex Finance and Yearn.finance rely heavily on CRV to operate their platforms, and the increased activity has resulted in a decrease in the circulating supply of CRV. This could have helped raise the CR price as investors clamor for tokens for the highest possible return.
Curve Finance and the broader DeFi ecosystem could also benefit from the sharp drop in gas fees on the Ethereum (ETH) network, which previously had deterred many retailers from performing the simple approval and confirmation transactions required to set DeFi and Claim profits logs.
Lower fees have allowed a wider range of users to revisit their favorite DeFi protocols, and Curve has benefited significantly from this development.
The VORTECS ™ indicator flashed before the outbreak
Cointelegraph Markets Pro’s VORTECS ™ data began to see a bullish outlook for CRV on May 31, ahead of the recent price surge.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graph above, the VORTECS ™ Score for CRV was bullish for the past week, with a high of 77 late on May 31st. This was about 15 hours before the price rose 55% over the next 48 days.
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