With the emergence of blockchain technologies, the financial landscape has almost changed. The traditional financial system has changed and become decentralized in nature with the evolution of decentralized finance (DeFi). One example of DeFi technology is Curve finance.
Curve Finance is a decentralized protocol based on the Ethereum blockchain that enables the exchange or swap of stablecoins with the help of its Automated Market Maker (AMM) protocol. AMMs are decentralized exchange (DEX) protocols that decide the price of an asset with the help of mathematical formulas.
Well, this is just an introduction to what Curve Finance is. Now, we can move ahead to the main topic of our blog. CRV is the native token of Curve DAO, a decentralized autonomous organization running on the protocol of Curve Finance.
CRV is the utility and governance token of the Curve Finance protocol. It is used for incentivizing the liquidity providers in the protocol. Token holders have the power to vote when they lock or stake their token in the protocol. They can make various decisions regarding transaction fees, token burning schedules, and many others.
There is also a rule that the longer you lock your token, the more voting power you acquire in the protocol. The token was suddenly released by a Twitter user on August 13. The Token is secured with the Proof-of-Stake consensus mechanism as it is based on the Ethereum network.
Curve Finance, with its greater utility, has created high demand in the market. Currently, the total value locked is $3.711 Billion which is currently in a downward movement. It has seen its all time high total value locked in January 2022 which was $24 Billion.
However, it is considered miles better than other decentralized exchange protocols in the current scenario. For instance, its competitor, Convex Finance, has its total value locked at $3.156 Billion. Also, it has a strong community of users which helped to regain its price.
The CRV Token currently has a ranking of 63rd according to Coin Market Cap (CMC). The ranking shows that it has a strong user base, which helps the platform maintain its popularity. Also, its trading volume has increased by 19.68% in 24 hours, leading to an overall trading volume of $45,677,871.
It has seen a significant rise in its trading volume. It has the true potential to outperform many of the top leading cryptocurrencies in the future. It also offers many utilities to the users at the same time.
In a nutshell, the Curve DAO Token is the utility and governance token of the Curve Finance Protocol. It gives the users voting rights and helps them participate in various liquidity pools in the protocol. The TVL of the token is currently $3.711 Billion, which gives him a competitive edge over other DEX platforms.
The platform has true potential and will significantly grow in terms of price and trading volume. Well, it’s interesting to find out where it will be in the future.