TL;DR
- CRV Emissions Reduced: Curve Finance has reduced CRV token emissions for the fifth consecutive year, lowering the total supply to 2.09 billion, with 930 million tokens locked as veCRV.
- Sustainability Milestone: For the first time, Curve DAO earnings have exceeded CRV emissions, marking a significant step towards sustainability.
- Potential Price Rally: CRV price shows potential for a 40% rally, supported by technical indicators and increased blockchain usage.
Curve Finance, a leading decentralized exchange (DEX) and automated market maker (AMM) platform, has announced a significant milestone in the annual reduction of its native CRV token emissions. This marks the fifth consecutive year of emissions reductions since the token’s launch in 2020.
CRV turns 4 years, and CRV inflation reduces to 6.35%, which is 375k CRV per day.
Congratulations everyone! pic.twitter.com/eHsDZfMvkt
— Curve Finance (@CurveFinance) August 12, 2024
The latest reduction has decreased the total CRV supply to 2.09 billion, with approximately 930 million tokens perpetually locked on the platform as vote-escrowed veCRV. Considering the locked supply, the current circulating supply of CRV tokens stands at around 1.16 billion, aligning with the end of all vesting periods on Curve’s platform.
Implications for Curve DAO
This fifth annual CRV emission reduction coincides with a significant milestone for the Curve decentralized autonomous organization (DAO). For the first time, Curve DAO earnings, which are entirely allocated to veCRV, have exceeded CRV emissions. This indicates that the ecosystem is moving towards a sustainable path.
On June 28, Curve Finance transitioned its fee distribution mechanism from the 3cr token to the native stablecoin, crvUSD. This change aims to incentivize users while enhancing the stablecoin’s utility and integration within the platform’s ecosystem.
Michael Egorov, founder of Curve Finance, highlighted that this transition allows users to obtain fees in a dollar-denominated stablecoin, simplifying the process significantly.
Potential Rally for Curve DAO Price
The price of Curve DAO recently broke above a falling wedge pattern, signaling a potential bullish trend. As of Tuesday, CRV is trading slightly higher at $0.3158. If the upper trendline of the falling wedge pattern holds as throwback support around $0.275, CRV could rally 40% from that level, targeting $0.387, its 61.8% Fibonacci retracement level.
On the daily chart, the Relative Strength Index (RSI) is above the neutral level of 50, and the Awesome Oscillator (AO) is approaching its threshold. Both indicators must maintain their positions above average for the bullish momentum to continue.
Additionally, Santiment’s Daily Active Addresses index shows a 73% rise in one day, the highest since mid-June, indicating increasing demand for CRV’s blockchain usage, which could further propel a rally in Curve DAO’s price.
