Curve DAO Token (CRV), the native token of Curve protocol, has rallied more than 21% over the past 24 hours.
CRV, the 60th-largest token with a market capitalization of nearly $760 million, is changing hands at $1.41.
The primary driver behind today’s bullish price action is the upcoming launch of Curve stablecoin.
The launch of an over-collateralized stablecoin by Curve was confirmed by Michael Egorov, the Founder of Curve, at a web3 summit.
“Over-collat. That’s all I can say for now,” said Egorov.
Curve joins leading DeFi protocols, including Aave and Maker, in the race to launch a decentralized over-collateralized stablecoin.
Unlike more centralized offerings à la Tether’s USDT and Circle’s USDC, over-collateralized stablecoins are backed by volatile assets like Bitcoin, EthereumEthereum and a basket of other cryptocurrencies.
Over-collateralization helps the stablecoin retain its dollar peg amid crypto’s notorious volatility.
Curve and the crypto markets
Despite today’s tremendous run-up, the Curve’s native governance token is still down 97.67% from its all-time high of $60.50 recorded in August 2020, according to data from CoinMarketCap.
A total of 75,393 wallets own CRV tokens, according to Etherscan, up 0.052% from the previous day.
The Total Value Locked (TVL) on the Curve protocol currently holds at a total of $6.02 billion and another $765 million staked in the protocol, suggests data from DefiLlama.
Other leading tokens within the decentralized finance (DeFi) sector, including Lido (10.6%), Sushi (7.5%), Compound (8%), and 1inch (5%) have also extended their bullish action over the last 24 hours.
Leading cryptocurrency Bitcoin has risen just 1.65% over the past 24 hours and trades around $23,250.
Ethereum, the second-largest cryptocurrency, has also posted a significant 8.4% gain in the same period.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Want to be a crypto expert? Get the best of Decrypt straight to your inbox.
Get the biggest crypto news stories + weekly roundups and more!
Source: https://decrypt.co/105725/defi-token-behind-curve-finance-jumps-stablecoin-news
