Curve DAO (CRV) Token Price Jumps 77% as Developers Reduce Token Emissions

The Curve (CRV) token jumped to a high of $0.3161, its highest level since July 15 and 77% above its highest point

Curve (CRV) price rebounded on Tuesday as the network developers announced a reduction in token emissions. The CRV token jumped to a high of $0.3161, which was its highest level since July 15. It rose by over 77% from its lowest point on Monday, August 6th.

However, the token’s gains happened as Bitcoin (BTC) and other altcoins, like Sui (SUI), Dogwifhat (WIF), and Aptos (APT), pulled back. Among the worst performers were SUI, WIF, and APT.

In an X post on Monday, Curve DAO developers announced that they will reduce emissions, marking the fifth consecutive year of reductions. The developers noted that the number of new CRV tokens introduced in 2020 was 274 million, a figure that has now been reduced to 162.7 million.

As a result, the total CRV supply has decreased to 2.09 billion. Of these, about 930 million tokens have been locked in the platform as veCRV.

The developers hope that the reduction will boost the value of the CRV token, which has lost a substantial amount in the past few years. Its market cap peaked at $3.02 billion in 2020 and has since dropped to $369 million.

Curve Finance, a decentralized finance (DeFi) pioneer, has seen its market share dwindle in recent years. According to data, it now has about $2 billion in assets across 17 chains, including Ethereum, Arbitrum, Polygon, and Arbutrum. The platform has slipped from the top ten DeFi platforms to become the 14th largest.

The network’s rapid decline in assets, from over $23 billion, was due to several challenges. For instance, the network lost $70 million in a major hack in 2023 and $2.8 million in 2020 due to an attack on its integration with Yearn Finance.

The token has also been under pressure as large holders were liquidated recently. Michael Egorov, the founder, was liquidated in June as the token price retreated.

CRV crossed the 50 EMA. Will it continue rising?

The CRV token is still trading significantly lower than it did a few months ago. It peaked at $0.877 in March and has since declined by over 63%, reaching a low of $0.3170.

The Curve DAO token has risen above the 50-day moving average and is now approaching the 23.6% Fibonacci retracement level. It could continue to rise if it manages to cross this resistance point. In that case, it might reach the psychological level of $0.40, especially if Bitcoin and other cryptocurrencies rebound.

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