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Curve dao token price prediction: CRV rallies amid $570k hack

13:37, 11 August 2022

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The curve dao token logo and text
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) that only offers stablecoins and wrapped assets.

The curve dao token (CRV) has proved successful with it climbing into the top 100 cryptocurrencies by market capitalisation.

But will the recent $570,000 hack 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.

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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

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.

LUNA/USD

2.58 Price
0.000% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 21:00 (UTC)
Spread 0.0525

ETH/USD

1,364.73 Price
+2.990% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 5.50

BTC/USD

20,377.85 Price
+3.840% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 66.00

XRP/USD

0.48 Price
+2.840% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00660

It started climbing in early 2021 with the bullish crypto market. On 11 February, 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. 

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.

CRV crashed after this high and has been stuck in a bearish trend since. It stooped once again below $1 in June.

But the curve dao token appears to be recovering, even in the face of a recent hack that saw attackers steal $570,000. Curve claimed that the source of the hack was found and has been patched.

At the time of writing, on 11 August, CRV was trading at $1.42 and was up 6.4% on the previous seven days.

Curve dao token price prediction

At the time of writing, there were some optimistic outlooks over the token’s future, according to several CRV price predictions. DigitalCoinPrice said it would have climbed from $1.84 this year to $2.81 in 2025. Its curve dao token price prediction for 2030 gave an average price of $6.48.

TechNewsLeader’s curve dao token price prediction for 2022 expected it to have passed the $1 level and achieved $1.46. It suggested the cryptocurrency may have surged to $13.04 in 2028 and $28.08 in 2030.

PricePrediction was even more bullish and suggested CRV could have reached $2.36 next year. Its curve dao token price prediction for 2025 anticipated a potential maximum value of $5.93. The forecast for the cryptocurrency in 2030 was predicted to have been $36.71.

CaptainAltcoin expected CRV to have fallen to $1.38 in October. The token was then predicted to have climbed to $1.99 in a year and $7.27 in 2025.

When considering a CRV token 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 11 August, there was a circulating supply of a little more than 526 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?

There are some optimistic forecasters, such as PricePrediction, who suggested it could eventually climb past $25.

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 $570,000 hack.

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 and never invest more money than you can afford to lose because prices can go down as well as up.

Further reading:

 

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
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.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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