Decentralized Finance (DeFi) would have been incomplete without mentioning Curve Finance [CRV] in the past. However, by 2022, the automated market maker had become a shadow of its former self.
Curve was unable to maintain its top two positions in terms of Total Value Locked [TVL] due to the impact of Lido Finance [LDO] and Maker DAO [DAO]. However, DeFi Llama reported that the CRV was still a part of the 42% DeFi market dominance as of January 1, 2023.
While doubts about the protocols’ longevity grew, Ethereum [ETH] whales decided that CRV was still useful. CRV was one of the top ten tokens used by whales in the last 24 hours, according to Whale Stats.
According to DeFi Llama data, CRV has lost a significant amount of value since its yearly peak in April 2022. The TVL was valued at $3.63 billion at the time of publication. This meant that the protocol’s survival was in jeopardy. Furthermore, investor interest in depositing liquid assets in the Curve pool has not increased.
Holders were also dissatisfied with CRV’s price performance in 2022. The token’s 365-day performance was 91.51% lower at the time of writing.
Regardless of the disappointing state, traders remained interested in CRV. Binance’s funding rate was 0.01%, according to Sanitment. While continuing to make periodic payments in the derivatives market, these traders also maintained futures open interest.
According to Coinglass data, traders opened an impressive volume of short or long CRV contracts across multiple exchanges. Despite this, liquidations had been minimal, totaling $32,680 in the previous 24 hours.
With CRV trending upward from the previous day, short-position traders took the brunt of the market drubbing.
The four-hour chart indicated that CRV may face some difficulties in maintaining greens. This was due to a battle between the +DMI (green) and -DMI (red) on the Directional Movement Index (DMI) (red). At the time of publication, the negative DMI was slightly higher than the positive DMI.
The Average Directional Index (ADX), on the other hand, moved in a negative direction, closing at 11.72. As a result, the CRV price is likely to consolidate in the short term. As a result, CRV’s first quarter in 2023 could end in a similar manner to how it ended in 2022.
