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Curve Finance Users are Locking Record Amounts of CRV Tokens in the DEX


Users locked 51 million CRV last week, surpassing the previous record of 24 million in October 2022.

Users of Curve Finance are locking more CRV tokens in the decentralized exchange than before.

According to crvhub.com, which tracks data, Curve Finance deposited 51 million CRV tokens, or $14.7 million, into the protocol in the seven days ending July 8. Last week’s inflows bring total deposits to 796 million CRV, or $230 million. Dune,

The figure is significant as it is more than double the previous all-time high of 24 million CRV locked in October 2022. Furthermore, the rate of lockups is 100 times higher than the previous period, meaning a potential renewed intensity in the protocol to have a greater impact on Curve, said Michael Egorov, founder of Curve Finance.

Egorov said the data shows that investors are increasingly focused on the importance of governance and fee distribution. Egorov said this could prove to be a “tectonic shift” in users’ overall attitudes in an ecosystem that is highly focused on financial gain.

In addition to the surge in locked tokens, Curve also had its best week in terms of fee revenue since April 2024. The protocol’s fee revenue grew to $951,000 last week, up from $548,000 in the previous seven days.

Egorov explained that by locking up CRV tokens to receive VECRV, users get the ability to earn fees in the Curve system and obtain voting rights for platform governance. However, users must commit to a lock period of up to four years to maximize their voting power and earning potential.

TVL laughs

Nevertheless, the increasing number of locked CRV tokens has not led to an increase in TVL.

According to DeFilam, Curve’s TVL has peaked at $2 billion, up from $1.8 billion at the start of 2024 but still barely half of last year’s $4.3 billion peak.

However, it still ranks second in all these Decentralized exchanges on DeFiLama, only trailing Uniswap. The fact that Curve is seeing a broad decline while remaining in second place for DEXs may be more an indictment of the sector than the protocol itself. TVL for all DEXs is $18 billion, up 80% from 2023’s low of $10 billion.

Even the nearly vertical increase in CRV lockup has not impacted the protocol’s financial position.

Curve Finance has a market capitalization of $346 million, the lowest since December 2022, it is estimated. CoinGeckoThe token recently hit its all-time low amid the widespread crypto sell-off. CRV hit its record low on July 4, when it was trading at $0.22 on July 4, but has since jumped 33% and is now trading at $0.29. It is down 98% from its all-time high of $15 in December 2020.

The-Defiant
CRV Price – Coingecko

Nevertheless, according to the Curve Finance team, the surge in CRV locked could signal a renewed intensity in protocol competition that was nicknamed the “Curve Wars” in 2021, where various protocols tried to lock up more CRV tokens to gain more influence and rewards within the Curve Finance ecosystem.

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