Curve Finance is among the leading exchanges in the DEX marketplace. Nevertheless, the decentralized exchange remained immensely underwhelming within the previous month. The fall from glory started in the second quarter before Uniswap overtook the leading platform.
Curve Finance’s performance indicated a swift decline in demand for digital tokens following enormous volatility in cryptocurrency prices.
Primed for Declines
Curve Finance noted a $26.1B exchange volume in May 2022. Meanwhile, several notable events emerged following this month’s crypto market slump. Curve’s declining volumes since May reflect the effects. Curve accumulated more than $15.5B in June before recording a 48% drop in July to explore the $7.9 billion mark.
Lastly, the exchange has recorded only $4.03B this month as we enter August’s final week. It remains doubtful that Curve will hit even $5.25B for now. The project lags massively behind Uniswap in top decentralized exchanges.
The past week saw Uniswap’s volume hitting $9.4B, whereas Curve noted only $1.5B. While Uniswap flourished amidst the Q2 2022 bear market, Curve remained behind. UNI’s weekly chart confirms such performance since Sep 2021.
What About Native CRV?
The bear market challenges that continued to deteriorate Curve’s decentralized exchange are also impacting the CRV coin. CRV holders have seen their profitability dipping to new lows. Santiment shows Curve DAO’s MVRV value of -19.95%.
That means more than 1/5th of current Curve holders are at a loss. While publishing this post, the altcoin changed hands at $0.99.The plummeting CRV prices have also triggered a shift in the token’s supply on exchanges. More than 8 million CRV coins have joined exchanges since July 2022.
It highlights deteriorated confidence in the altcoin as investors ponder on offloading soon. Meanwhile, digital coins have seen slight upticks within the past day. The overall crypto market capitalization gained 1.61% in 24 hours to $1.02 trillion. Also, Bitcoin noted a 1.15% 24hr surge to $21,432.24. However, that doesn’t mean steady recoveries.
The market remains shaky, and participants might need caution when exploring opportunities. Bears have confirmed their presence after upticks. Will the scenario repeat? The watch & wait approach might apply here.
