In the last 24 hours, Curve‘s token (CRV) has seen a significant 11% surge as crypto investors eagerly anticipate their upcoming stablecoin curve USD (crvUSD). As CoinDesk uncovered back in June, this dollar-backed asset is highly anticipated among cryptocurrency enthusiasts. With market demand for decentralized stablecoins on the rise, Curve will likely be one of many coins to benefit from its imminent launch.
It Seems Like Curve USD (crvUSD) News Increased Curve’s Price
On Monday, Curve indicated an upcoming issuance of crvUSD and mentioned a continuing proposal that would be essential for the autonomous operation of crvUSD. This proposed measure will let stablecoin pools supply pricing data to external protocols. When traders caught wind of this development, they jumped on it and spurred CRV’s demand, leading to $770 million in trading volume from crypto exchanges!
By leveraging smart contracts instead of intermediaries, Curve provides popular financial services such as trading and borrowing with stablecoins to its users. Depositors can benefit from yields up to 4% annually through any one of the multiple pools on the platform. One of the most renowned protocols within crypto circles, Curve has amassed a staggering $4.6 billion worth of tokens in lockup!
Accruing a market value of more than $1 on Tuesday, CRV defied the general downward trend in the cryptocurrency industry as BTC fell 1%. This newfound momentum is attributed to decentralized stablecoins that have become catalysts for positive crypto markets. Reaching its peak levels since early January, CRV’s surge serves as yet another example of how digital tokens are revolutionizing our society’s financial landscape.
SEC’s Investigation Arouses a Bearish Sentiment Towards Stablecoins
After the Wall Street Journal reported on Sunday that the U.S. Securities and Exchange Commission (SEC) accused BUSD of being unregistered security, traders have had doubts about centralized stablecoins like BUSD’s future operations and legality due to a previous CoinDesk article claiming Paxos was under investigation by New York Department of Financial Service. This has led investors to make bearish investments in favor of decentralized counterparts, which should be less likely to face legal repercussions in the foreseeable future.
crvUSD Might Be The First Stablecoin Issued By A Decentralized Exchange
“The emergence of crvUSD could be a fascinating development, as we haven’t seen a stablecoin released by a major DEX (decentralized exchange) yet,” Daniel Zlotin, senior DeFi developer at Orbs, expressed in a Telegram message to CoinDesk while discussing the utility of crvUSD. “Connecting a secure and reliable stablecoin with an effective decentralized finance platform may open up multiple innovative opportunities, such as using LP tokens for backing purposes. However,” he continued, noting that there will inevitably be certain obstacles along its implementation process.
You may be interested in: Bank Of Japan Out Evaded Recession, But It Might Be Not Enough
