The majority of DeFi protocols have had difficulty in recent months due to tough conditions brought on by the decline of the overall crypto market. Curve Finance, a decentralised exchange (DEX) and automated market maker (AMM) platform, is feeling the effects of this carnage as its Total Value Locked (TVL) continues to decrease.
DeFiLlama data shows that over the past two weeks, the DEX’s TVL has decreased by 51%. This was £6.37 billion two weeks ago. However, Curve Finance’s TVL, which was at £4.20 billion at the time of writing, was now No. 5 on DeFiLlama’s list of protocols with the largest TVL.
The governance token for the DEX, Curve DAO Token (CRV), has been slowly declining over the last two weeks, according to data.
The altcoin, which is currently trading at £0.64 per CRV, has dropped by 31% over the past two weeks. The price of the cryptocurrency has dropped 5.17% during the past 24 hours. Within the same time frame, there was a 3% increase in trading volume.
Additionally, over the past two weeks, CRV’s market capitalisation declined. At the time of publication, it showed a fall from £422 million to £342 million.
Increased token distribution since the start of June has caused a sharp decline in price. The RSI has deviated more from 50, heading in the same direction as the oversold territory.
This suggests that there is an oversupply of CRV tokens. This also explains why prices have been dropping steadily. At press time, the RSI was at 41, still in a downward curve.
On-chain data shows that CRV experienced losses in both its social volume and dominance during the last two weeks. Social volume decreased by 15% during this time frame, while social dominance dropped by 20%.
There was a 14% decline in the daily active address count. Meanwhile, the network growth experienced a 27% reduction.
While other metrics declined, development activity increased by 7% over the time frame under consideration.