According to Messari on 6 February, Frax Finance’s sfrxETH has been offering high annual percentage rates (APR) to its subscribers. This appealing return on investment has the potential to attract new Curve Finance [CRV] network members.
Curve Finance has been at the forefront of this movement in recent years, as the DeFi industry has witnessed a lot of expansion and innovation. Nonetheless, despite its numerous benefits, the technique has recently encountered significant difficulties.
According to Messari’s data, the number of unique users on the Curve network has decreased by 0.26% in the previous 30 days. As a result, the Curve protocol’s supremacy in the DeFi domain has waned. According to Dune Analytics statistics, Curve’s dominance has decreased from 39.9% to 7.1% in recent months.
Curve’s supremacy in the DeFI field might be aided by Frax Finance’s sfrxETH. However, the procedure was afflicted by a number of difficulties at the time of publication.
The Curve protocol was seeing a decrease in the number of active developers on the platform, which might have an influence on the protocol’s general development and future prospects. Despite these obstacles, the protocol’s treasury continued to expand.
This expansion might benefit the protocol in the long term by providing greater resources and stability.
The CRV cryptocurrency has likewise witnessed no positive growth, since network expansion has slowed as of press time. This suggested that the CRV coin was losing popularity among new addresses.
However, the CRV token’s MVRV ratio fell, indicating weaker selling pressure. This might indicate that CRV holders were growing more confidence in the token’s long-term prospects.
Furthermore, the CRV token’s long/short discrepancy revealed that many short-term investors were still hanging on to the token. These short-term holders may sell their tokens in the near future, affecting the token’s price as well as broader market sentiment.
In conclusion, despite the Curve protocol’s press time issues, its treasury growth and decreasing selling pressure on the CRV token might be signs of good things are come. Furthermore, Frax Finance’s high APR may attract new users to the Curve network and reignite interest in CRV.
