Amidst the DeFi Rout, Curve (CRV) is the Biggest Loser
The biggest loser of the ongoing DeFi winter is the decentralized exchange Curve’s token CRV.
Launched in August amidst the controversy of being pre-mined, it didn’t take much time for the token to make its all-time high at $9.60 with the DeFi bull run going on at full speed.
Since then, it has been only on a downtrend, down nearly 93% from its ATH, in just over a month. At the time of writing, CRV/USD has been trading at $0.650.
— moon is tweeting (@MoonOverlord) October 3, 2020
Volume is no different either on the platform. On Sept. 14, Curve recorded its highest volume of $419 million, and since then, it has been on a decline hitting $34.5 million yesterday, last seen in August when it was on an uptrend.
The crazy inflation doesn't help either, and the token continues to buckle “under continual inflation sell pressure.”
“CurveFinance is a phenomenal product… But given the insane inflation, hard not to be bearish CRV,” said Jason Choi of crypto fund The Spartan Group.
The Power of DEXs
Curve is currently the third-largest DeFi project in terms of total value locked at $1.5 billion, just around its peak. Removing the endogenous asset from the protocol leaves just $339 million.
This DEX is optimized for low slippage swaps between assets pegged to the same value.
It’s clone Swerve has also lost about 89% of its value since its peak. Once having $941 million in TVL and recording over $220 million in volume, Swerve has crashed to $46 million and $3.6 million, respectively.
Uniswap exchange beats Curve as the dominant (21.26%) force in the sector, which has $2.3 billion of Total Value Locked (TVL) — a new all-time high. The highest volume ever recorded on Uniswap has been about a billion twice in a row, which has now come down to just above $300 million. However, UNI has also lost more than half its value since the ATH.
However, both are uncomparable as Curve’s volume is mostly from stablecoins.
Moreover, Uniswap even surpasses the volume of leading cryptocurrency exchanges. In the month of September, compared to Coinbase’s $13.6 billion, Uniswap did $15.4 billion in volume, as per Dune Analytics.
“Uniswap overtook Coinbase in volume in September. Even while facing an onslaught of competitive forks, such as Sushiswap. This is impressive,” noted trader and economist Alex Kruger.
These past few months actually belongs to DEXs, recording $20.5 billion of volume in the last 30 days.
Monthly DEX Volume By Project
During this summer cycle, the majority of the DeFi tokens have lost a significant amount of their value today, from their highs hit during August 15 and Sept. 1st.
While CRV is at the top, Sushi and bZx aren’t much behind with their 91.5% and 90% losses, respectively. Others have slid down 88% to 35%. During this period, the Ethereum price also dropped 28.7%, currently trading at $351.