The Curve DAO price rose for the second consecutive day after developers reduced the token emissions.
Curve (CRV) token jumped to a high of $0.3161, its highest level since July 15 and 77% above its highest point since Monday, Aug. 6. This rebound occurred as Bitcoin (BTC) and other altcoins pulled back. Some of the worst performers on Tuesday were Sui (SUI), Dogwifhat (WIF), and Aptos (APT).
In an X post, Curve DAO developers noted that they will reduce emissions, marking the fifth consecutive year of reductions. They stated 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, approximately 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 substantial value 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 leading player in decentralized finance, has seen its market share decline over the past few years. Data shows that it currently holds about $2 billion in assets across 17 chains, including Ethereum, Arbitrum, Polygon, and Arbutrum. The platform has dropped from being a top-ten DeFi platform to the 14th largest.
The sharp decline in assets from over $23 billion occurred as the network faced several challenges. For example, the network lost $70 million in a major hack in 2023 and $2.8 million in November 2020 due to an attack on its integration with Yearn Finance.
The token has also faced pressure as large holders were liquidated recently. Michael Egorov, the founder was liquidated in June as the token price retreated.
CRV token crossed the 50 EMA
The CRV token is still trading much lower than it was a few months ago. It peaked at $0.877 in March and has since dropped by over 63% to $0.3170.
The Curve DAO token has risen above the 50-day moving average and is eyeing the 23.6% retracement point. Further upside could be confirmed if it flips the 23.6% retracement level at $0.2435. If this happens, it may rise to the psychological level of $0.40, especially if Bitcoin and other cryptocurrencies rebound.
