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Curve DAO Token price prediction: CRV rallies amid $570k hack

By Raphael Sanis


Updated

The Curve DAO Token logo, pixelated heat map-style graphic on a dark finance background
Users can only trade stablecoins and wrapped assets on the Curve protocol – Photo: Satheesh Sankaran / Shutterstock

Cryptocurrencies are known for their volatility. But Curve is looking to focus on stability with its decentralised exchange (DEX), which only offers stablecoins and wrapped assets.

The Curve DAO Token (CRV) has proved successful, climbing into the top 100 cryptocurrencies by market capitalisation.

But will the recent coordinated attack by CRV shorters scare off investors? 

What is Curve DAO Token (CRV)?

Curve is a decentralised exchange that stands out from the rest as it only trades stablecoins or wrapped versions of cryptocurrencies, like wBTC.

Instead of promising volatility and massive gains, Curve is using its stablecoin automated market maker (AMM) to provide low fees, slippage and impermanent loss. Its website says:

“Curve is an exchange liquidity pool on Ethereum (like Uniswap) designed for extremely efficient stablecoin trading [and] low risk, supplemental fee income for liquidity providers, without an opportunity cost.”

Those providing liquidity into its stablecoin pools will gain interest on their investment. But Curve does not aim for a 1:1 ratio of the two assets in a pool. Instead, it concentrates the liquidity where it is needed the most. This gives Curve a much higher liquidity utilisation rate compared with other protocols.

Michael Egorov is the founder and CEO behind Curve. With a background in software engineering, he worked as the chief technology officer at the data privacy blockchain NuCypher prior to Curve.

Curve’s decentralised organisation

Despite having a chief executive, Curve started creating its own decentralised autonomous organisation (DAO) to manage the protocol in August 2020. The Curve DAO Token (CRV) is the key to membership for this organisation.

Investors can purchase CRV through exchanges, but it can also be earned through yield farming. CRV rewards are received when providing the DAI stablecoin to a Curve liquidity pool.

Investors can lock in their tokens and receive voting rights in return. Possible proposals to vote on could include changing fees, adding new liquidity pools or adjusting the yield rewards. The more CRV that is owned and locked up, the larger the percentage of voting power. But this has not convinced all investors.

CRV’s bumpy price history

CRV price chart 

Source: CoinMarketCap


Curve DAO Token (CRV) launched on 14 August 2020 and rocketed to its all-time high of $60.50 that day, according to CoinMarketCap. It then immediately plummeted and closed the day at $11.61. This bearish trend stuck with CRV and it has been unable to pass its launch price. By the end of September, it had crashed under $1.

It started climbing in early 2021 with the bullish crypto market. On 11 February 2021, a vote took place to amend certain pools including USDN, 3pool and stETH. The vote passed with a 100% majority and CRV peaked at $3.60 the following day.

The token surged even higher in April as another vote took place to add a liquidity gauge to the new BUSD metapool. These gauges measure usage of a liquidity pool. CRV reached a high of $4.65 on 16 April 2021. 

The Curve DAO Token managed to pass the $5 mark in early 2022. It launched a new pool on 3 January 2022 with the T Network token. CRV hit a peak of $6.74 the following day, but crashed after this high and has been stuck in a bearish trend since. It stooped below $1 once more in June.

BCH/USD

481.25 Price
-5.590% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

BTC/USD

64,262.75 Price
-3.170% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.15 Price
-5.920% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,153.83 Price
-1.740% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

But Curve DAO Token managed to recover from this low, even in the face of a hack that saw attackers steal $570,000 in August. Curve claimed that the source of the hack had been found and patched.

CRV managed to reach a peak of $1.49 on 8 August 2022, but then resumed its bearish trend.

In recent Curve DAO news, a proposal to make rewards more accessible on the platform passed on 12 October 2022. This now enables any project on the platform to add its own token reward system.

CRV reached a high of $1.06 on 4 November, but was unable to maintain this momentum. 

CRV’s short squeeze

There has recently been reports of a “coordinated attack” against the CRV cryptocurrency. These strikes against CRV appear to be happening on the Aave DeFi protocol. Followers of the crypto have drawn attention to the user handle Avi_eisen and activity alleging the short of 17m CRV.

The Lookonchain Twitter account has also reported that a borrower from Aave is dumping 20m CRV.

Meanwhile, Egorov reportedly has $48m of CRV supplied on Aave with a liquidation price of $0.259.

Curve stooped to a low of $0.40 on 22 November, which is still far above Egorov’s liquidation price. The cryptocurrency has since started to rebound. At the time of writing, CRV was trading at $0.62, up 50% in the past 24 hours but down 30% in the past month.

Curve DAO Token price prediction

At the time of writing, there were some optimistic outlooks over the token’s future, according to several CRV coin price predictions.

DigitalCoinPrice said it would have climbed from $0.75 this year to $2.73 in 2025. Its Curve DAO Token price prediction for 2030 gave an average price of $8.93.

TechNewsLeader’s Curve DAO Token price prediction for 2023 expected it to have traded at $1.76. It suggested the cryptocurrency may have surged past $20 by 2030. 

PricePrediction suggested CRV could reach $0.93 next year. Its Curve DAO Token price prediction for 2025 anticipated an average price of $1.91. The forecast for the cryptocurrency in 2030 was $11.88.

CaptainAltcoin expected CRV to have dropped to $0.44 by the end of the year. However, the CRV crypto price prediction then anticipated it to have climbed to $0.63 in a year and $2.27 in 2025.

When considering a CRV price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

How many Curve DAO Tokens are there?

As of 22 November 2022, there was a circulating supply of a little more than 530 million CRV, according to CoinMarketCap.

Is Curve DAO Token a good investment?

CRV is giving investors voting rights on various proposals that would impact the DeFi protocol. Despite the utility, Curve DAO Token has been stuck in a bearish trend since January 2022.

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the curve dao token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.

Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

Will Curve DAO Token go up?

As of 22 November 2022 some optimistic forecasters, such as PricePrediction, suggested it could eventually climb past $10. CaptainAltcoin, on the other hand, anticipated a much slower rise.

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether CRV is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.

Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

Should I invest in Curve DAO Token?

Curve is a decentralised exchange that lets users trade stablecoins, but it has recently been hit by a coordinated short attack.

Whether you should invest in CRV is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research. Never invest more money than you can afford to lose, because prices can go down as well as up.

 

Markets in this article

CRV/USD
CRV/USD
0.4499 USD
-0.0296 -6.350%
WBTC/USD
WBTC/USD
64488.95 USD
-2677.85 -4.010%

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You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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