Whales Buy CRV as Convex Finance Dominates Curve Governance
• Convex Finance dominated Curve Finance’s governance, with 45% of the overall voting power.
• Curve Finance lost its share of DEX volume to other DeFi protocols, but still managed to increase its treasury holdings.
• Whales showed interest in CRV token despite decreasing trading volumes and velocity.
Convex Finance Dominates Curve Governance
According to Delphi Digital, Convex Finance, a Curve [CRV] staking platform, dominated 45% of the overall governance on the network. vlCVX holders can vote on the pools they want to incentivize or vote for specific pools and earn bribes paid by other protocols. A Look at Convex’s Business Model and a Looming Catalyst is live now for PRO members⬇️https://t.co/akrMZYuE8M — Delphi Digital (@Delphi_Digital) February 28, 2023
Curve Faces The Heat
Over the past few months, Curve Finance’s share of DEX volume declined materially. Based on Dune Analytics‘ data, the overall DEX volume of the protocol fell from 15.2% to 4.4% since the beginning of this year. A large part of the share was lost to other DEX’s such as Uniswap [UNI]. Source: Dune Analytics Despite the decline in volume, the Curve protocol generated ample revenue and increased its treasury holdings. According to Token Terminal, these holdings increased by 37.3% over the past month. The DAO could put these treasury holdings to good use if they use the holdings to make developments on the protocol. It appeared that there were efforts being made by the DAO to improve the protocol, as indicated by the increasing number of active developers. Based on Token Terminal, the number of active developers on the Curve protocol increased by 8.6% in the last week
Whales Show Interest
Even though Theprotocol was doing poorly it did not stop whales from investing heavily in CRV . Santiment’s data showed that percentageof large addresses holdingthe CRV token increased overthe past week . Read Curve’s[CRV] Price Prediction 2023-2024 This interest fromwhales could be one reason why CRV’s prices surged . However , despite increasing prices ,thevolumeofthetoken declined . Along withthat ,theoverallvelocityofthetokenfell , suggesting that frequency with which CRVwasbeing traded had plummeted . Source : Santiment Only time will tellwhetherwhalesarecorrectin their assessment oft heCurve token
Realistic or Not?
Realistic or not , here ’sCR V‘ smarketcapinBTC ’stermsit has been seen that dominance was created as ConvexFinanceheldmost veCV Xand veCR V tokens . Holdersof these tokenscanvoteonthepoolstheywanttoincentivizeorvotefor specificpoolsandearnbribespaidbyotherprotocols
Onlytime willtell whetherthewhalesarecorrect intheirassessment oft heCurvetoken .Theprotocoldoes show potentialforgrowthasthereseemstobealargeinterestfrom whalesinvestinginthetokenandamplestreasuryholdingsforthedevelopmentoftheprotocol .