The Curve DAO decentralized exchange (DEX) lost more than $50 million in a crypto hack in July this year and its CRV token has struggled since.
With markets going down recently, CRV was able to make something of a recovery in late September after someone purchased millions of dollars worth of the token on the Binance (BNB) exchange.
But what is Curve DAO (CRV)? How does Curve CAO work? Let‘s see what we can find out and also take a look at some of the Curve DAO price predictions that were being made as of September 27 2023.
Let’s now take a look at some of the Curve DAO price predictions that were being made as of 19 June 2023. It is important to remember here that price forecasts, especially when they concern a commodity as potentially volatile as cryptocurrency, very often turn out to be wrong.
Also, it is worth keeping in mind that many long-term crypto price predictions are made using an algorithm, which means they can change at any time.
First, CoinCodex had a short-term Curve DAO price prediction which said token would slide to $0.4859 by October 2 and then recover to $0.577 by October 27. The site’s technical analysis was neutral, with 17 indicators sending bullish signals and 14 making bearish ones.
Bitnation argued CRV could trade at $1.83 in 2025, while DigitalCoinPrice was slightly more cautious, saying it would stand at $1.76. PricePrediction.net said the Curve DAO token would get to $1.46 in two years time.
In terms of a more long-term Curve DAO price prediction, PricePrediction.net was super-bullish, saying it would trade at $8.72 in 2030. DigitalCoinPrice was a bit more cautious, saying it would be worth $5.63. Bitnation claimed it would stand at $4.45 at the start of the next decade.
On September 22, a newly-created crypto wallet withdrew more than seven million Curve DAO tokens, worth about $3.5 million, from a Binance wallet. This saw the price go up, although it is still unclear who, or what, is controlling the wallet.
It’s now time to examine some of the Curve DAO price history . While past performance should never be taken as an indicator of future results, knowing what the token has done in the past can give us some very useful context when it comes to making or interpreting and Curve DAO price prediction.
When CRV first came onto the market on August 14 2020, it was worth $12.91 but soon shot up to reach an intra-day high of $60.50, which is still the token’s record price. Things went down after that and it closed the year at $0.6283.
Early 2021 saw the market shoot up and CRV reached a high of $4.65 on 15 April. It went down over the following months but recovered in the Autumn, breaking past $5 on October 26 on the way to a high of $6.39 on November 25. It closed the year at $5.35.
In 2022, things did not exactly go CRV’s way, as the crypto market was shaken by a string of crashes. The token dropped below $1 in June. Despite something of a recovery in August, the news was not good. It closed the year at $0.5248, an annual loss of more than 90%.
Moving into 2023, CRV looked to be recovering. It climbed past the dollar to reach a high of $1.15 on 15 February. After that, though, things went downhill again. After Crypto.com (CRO) suspended its US institutional operations on June 10, CRV dropped to $0.562.
There was a recovery after that. It reached a high of $0.8732 in mid-July, when a court ruled that Ripple’s XRP was not a security if it was being sold on exchanges. It went down to $0.7387 on July 30. The hack meant it dropped nearly 33% to $0.4982 on August 1. By August 2 2023, it was worth about $0.5695. Another downturn followed, with CRV bottoming out at $0.3895 on September 13. By September 27, CRV was worth about $0.519.
At that time, there were 878.5 million CRV in circulation out of a total supply of just over two billion. This gave the token a market cap of about $456 million, making it the 70th largest crypto by that metric.
Curve DAO has been in a downtrend since February this year.
In September, it entered the horizontal “resistance” zone of between $0.31 and $0.47. We can see that in the above chart. It climbed back above that level but, at the time of writing (September 27), it is showing signs that it could make a breakout.
If it goes up, then it could signal the start of a new bull cycle. If it goes down, that means we could end up with another all-time low.
Looking at the above chart, we can see that it could trade as high as $1.16 or as low as $0.22.
It is hard to say. CRV has done comparatively well for a token that covers a relatively niche market since it came out about three years ago. That said, it has struggled recently. A lot will depend on how the platform recovers after being hacked earlier this year, and if it can win back customers’ trust.
How the market performs as a whole will also be crucial. Nevertheless, it is vital that you do your own research.
No one can really tell right now. The predictions are broadly optimistic. Remember, though, that price predictions are likely to be wrong. Prices can, and do, go down as well as up.
Before you decide whether or not to invest in Curve DAO, you will need to do your own research, not only on CRV but on other, similar, crypto coins and tokens, such as Uniswap (UNI) or Osmosis (OSMO). More importantly, though, you must make sure that you never invest more money than you can afford to lose.
In its technical documentation, or whitepaper, Curve DAO, originally known as StableSwap, says it was designed with stablecoins in mind. It admits that it owes a debt to the Uniswap (UNI) DEX.
It says: “On the demand side, it offers a Uniswap-like automated exchange with very low price slippage (typically 100 times smaller). On the supply side, it offers a multi-stablecoin “savings account” which, according to simulation, can bring 300% APR, according to simulations assuming that traders will arbitrage between the smart contract and existing exchanges, taking into account their trading volumes and prices for stablecoins for the past half a year. This happens with no middleman being responsible for the trading, e.g. no exchange owners, no order books, no human market makers.”
The Curve DAO is, in effect, a decentralized crypto exchange (DEX). What makes it stand out from other DEXes is that it was created to specialize in the trade of stablecoins. These are cryptocurrencies whose price is linked to a fiat currency.
What makes decentralized exchanges different from traditional ones is that, since no one is in control of the system, people can trade whichever coins and tokens they want at a price that is set solely by the market.
Founded by Russian computer programmer and former LinkedIn employee Michael Egorov in 2020, Curve DAO is, as its name suggests, a decentralized autonomous organization, which means, at least in theory, that no single individual has control over the platform.
Rather than use order books, like other exchanges, Curve DAO uses liquidity pools, funded by the CRV token, which use smart contracts, computer programs that automatically execute once certain conditions are met.
People who hold CRV can be paid rewards for staking their tokens. People can also buy, sell, and trade it on exchanges.
One important thing to point out here is that, because Curve DAO operates on the Ethereum blockchain, CRV is a token, rather than a coin. You might see references to such things as a Curve DAO coin price prediction, but these are wrong.
On September 27 2023, there were 878.5 million CRV in circulation out of a total supply of just over two billion.
It might do but, if it does, it won’t happen for some time. PricePrediction.net says that it can get there by 2031, while DigitalCoinPrice says it will reach that level in 2032. Keep in mind that the token has been worth more than $10 before, but this was shortly after it was first released, indicating that it was initially overvalued.
CRV helps provide liquidity for the Curve Dao decentralized exchange (DEX). People can also buy, sell, and trade it on exchanges.
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Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.