DeFi tokens and protocols took a significant hit on May 19 because BTC cost dropped to $30,000 and while BTC has entered exactly what some analysts describe as a’compression’ stage, the total value locked in DeFi along with the value many of the sector’s tokens have to rally to the levels seen before the market crash.
Curve DAO token (CRV) stands among the few DeFi exemptions which have seen a strong recovery over the last two weeks due to reduced Ethereum gas fees, the launch of Convex Finance along with the DeFi industry beginning to locate a bottom.
Convex Finance launch brings CRV holders
One source of the sudden rise in cost and momentum for CRV is Convex Finance (CVX), an optimizer for the Curve Protocol that empowers swaps of similar assets such as stablecoin into stablecoin trades.
Introducing Convex Finance! A brand new stage, built by Defi Natives, to simplify your Curve-boosting experience to maximize your yields.
Read more here! https://t.co/65Dog7RdqE
— Convex Finance (@ConvexFinance) April 15, 2021
As it’s official launch on May 17, the Convex protocol has rapidly gained a significant consumer base thanks to yields as high as 52.16percent and a number of analysts have suggested that the protocol is tough Yearn.finance for CRV-related deposits.
Statistics from Defi Llama demonstrates that in the two and a half since the launch of Convex Finance, the total value locked (TVL) on the protocol has surpassed $2.3 billion with stakers about the protocol bringing $4.3 million in earnings.
Lower fees have allowed a broader selection of customers to re-engage with their beloved DeFi protocols, also Curve was a significant beneficiary of this development.
The VORTECSâ„¢ index flashed before the breakout
VORTECSâ„¢ info from Cointelegraph Markets Pro began to discover a bullish outlook for CRV on May 31, prior to the recent price rise.
The VORTECSâ„¢ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions based on a combination of data points such as market opinion, trading volume, recent price movements and Twitter activity.
As seen from the graph above, the VORTECSâ„¢ Score for CRV registered bullish readings during the last week with a high of 77 coming late in the afternoon on May 31. This was approximately 15 hours before the cost rallied 55% over the subsequent 48 hours days.
The views and opinions expressed here are only those of the author and do not always reflect the views of Cointelegraph.com. Every single investment and trading move involves danger, you need to conduct your own research when making a determination.
