Curve Finance, an Ethereum-based decentralized finance (DeFi) platform, has proposed adding more gauges to its liquidity pools on Ethereum in response to a request from whale addresses on its platform.
Curve Finance’s gauge system measures the liquidity of a certain pool or combination of pools on the platform. The gauges are used to calculate the stability fee (or interest rate) for a certain pool, with pools with lower gauges having a higher stability cost. Liquidity is distributed equitably among its pools using Curve Finance gauges.
According to Curve Finance, the request for more gauges on the Ethereum Network was prompted by the success of its V2 pools comprised of several coins with adequate liquidity. These gauges will be added one at a time, beginning with the MATIC/ETH, according to Curve Finance.
Adding more gauges to the Ethereum network on the Curve Finance platform will increase the number of pools available to customers, giving them more alternatives for exchanging different commodities.
At the time of writing, all 22 votes were in favor of adding extra gauges.
According to CoinMarketCap, the Curve DAO Token [CRV] has increased in value by 20.89% in the last week, making it one of the top five cryptocurrencies with the largest increases during this time period. The altcoin was trading at $1.08 as of this writing, up 7% in the last 24 hours.
Because the general cryptocurrency market has been trending upward since the beginning of the year, the number of unique addresses trading CRV coins has grown since January 1.
Furthermore, the daily number of new CRV addresses created has surged by 103%, indicating a considerable growth in demand for the coin.
With significant CRV accumulation since the start of the year, the alt was overbought at the time of publication. It has a Relative Strength Index (RSI) of 84.60. Its Money Flow Index (MFI) reached its greatest level ever, 100.
A price correction is common at these extremely overbought highs. Buyers often find it difficult to sustain any further price advance at these highs and bear frequently return to the market to commence a price decline.
This was validated by a study at the alt’s Chaikin Money Flow (CMF). At the time of publication, CRV’s CMF was in a downward trend, although it was still above the center line.
When an asset’s CMF is down while its price is growing, it may signal that the asset’s price is rising due to weak buying pressure. It signifies that the asset is being purchased by fewer investors or that the buying pressure needs to be higher to support the price increase.
This often indicates that the asset has become overbought and that a price correction is imminent.
