In recent times, the DeFi space has seen a lot of growth and innovation, and Curve Finance has been at the forefront of this trend. However, despite its many advantages, the protocol has been facing some challenges lately.
Messari’s data showed that the number of unique users on the Curve network has declined by 0.26% over the last 30 days. This has resulted in a declining dominance of the Curve protocol in the DeFi space. The dominance of Curve, as per data from Dune Analytics, has fallen from 39.9% to 7.1% over the last few months.
Frax Finance’s sfrxETH could help Curve improve its dominance in the DeFI space. However, there were multiple issues that plagued the protocol at press time.The Curve protocol was facing a declining number of active developers on the platform, which could impact the protocol’s overall development and future prospects. However, despite these challenges, the treasury of the protocol continued to grow.
This growth could be beneficial to the protocol in the long run, as it could provide more resources and stability.The CRV token has also not seen any positive growth as well, as network growth declined at press time. This implied that new addresses were losing interest in the CRV token. However, the MVRV ratio of the CRV token plummeted, indicating lower selling pressure. This could be a sign that CRV holders were becoming more confident in the long-term prospects of the token.Furthermore, the long/short difference of the CRV token suggested that a lot of short-term holders were still holding on to the token. These short-term holders could sell their tokens in the near future, which could impact the token’s price and overall market sentiment.