The post Here’s why CRV rallied 500% to 22-month highs appeared on BitcoinEthereumNews.com.

The Curve DAO token saw significant growth as December started, emerging as one of the top gainers over the past month. Curve DAO (CRV) rallied 500% in 30 days, reaching $1.33 with a market cap of $1.6 billion on Dec. 7 — the highest level since February 2023. The asset faced a 7% correction in the past 24 hours due to overbought conditions and is trading at $1.1 at the time of writing. CRV price and RSI | Source: crypto.news CRV’s daily trading volume, however, increased by 20% to $635 million, suggesting increased interest from investors. Thanks to the price rally, CRV’s open interest reached an all-time high of $262 million, according to CEX.IO analysts. “This surge can be traced back to a decision made a month ago: the launch of Savings crvUSD (scrvUSD),” Illia Otychenko, lead analyst at CEX.IO told crypto.news. Curve Finance is a decentralized exchange and automated market maker for trading Ethereum-based stablecoins and altcoins. The decentralized autonomous organization voted to create scrvUSD, a yield-bearing stablecoin that allows users to earn rewards simply by holding the token, in early November. The stablecoin’s main purpose is to “scale crvUSD” and compete with Sky’s sDAI and Ethena’s sUSDe. Moreover, scrvUSD allows users to generate revenue through Curve Finance’s lending and staking strategies — currently offering a 13% annual percentage rate — per the CEX.IO analysis. The stablecoin has already reached a $20 million market cap. Although scrvUSD also aims to stabilize crvUSD interest rates, they remained volatile due to high leverage demand. For example, borrowing rates surged to 50% on key markets following the U.S. elections. “Higher interest rates offer larger revenue for Curve per operation, but they limit new borrows. To address this, Curve DAO increased scrvUSD holders’ revenue share from 10% to 20%, and adjusted the crvUSD…

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Filed under: News - @ December 9, 2024 9:21 am