{"id":148791,"date":"2023-09-03T00:39:03","date_gmt":"2023-09-02T19:09:03","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=148791"},"modified":"2023-09-03T00:39:03","modified_gmt":"2023-09-02T19:09:03","slug":"curve-finances-new-l2-pools-fail-to-boost-tvl-heres-why-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/curve-finances-new-l2-pools-fail-to-boost-tvl-heres-why-crypto-news\/","title":{"rendered":"Curve Finance&#8217;s new L2 pools fail to boost TVL: Here&#8217;s why &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"single-post-author-top\">\n<p>\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" data-del=\"avatar\" src=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2022\/04\/image-80x80.jpeg\" class=\"avatar pp-user-avatar avatar-48 photo \" height=\"48\" width=\"48\" \/><\/p>\n<p>Journalist<\/p>\n<\/p><\/div>\n<p>\t\t\t\t\t\t\t\t<span class=\"mvp-post-date updated\">Posted: September 3, 2023<br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span><\/p>\n<\/p><\/div>\n<div>\n<ul>\n<li><em>On 30 August, Curve Finance launched three <span style=\"font-weight: 400\">dynamic liquidity pools on Base.<\/span><\/em><\/li>\n<li><em>However, its TVL has continued to decline.\u00a0<\/em><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">As part of its attempt to pull in new liquidity, decentralized exchange (DEX) for stablecoins <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/search\/curve\" data-wpel-link=\"internal\">Curve Finance [CRV]<\/a> launched new pools on the Layer-2 (L2) platform Base on 30 August.\u00a0<\/span><span style=\"font-weight: 400\">However, the protocol\u2019s total value locked (TVL) has continued to drop since then.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">We are on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BuildOnBase?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\">@BuildOnBase<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/QNrqkUdScz\" data-wpel-link=\"external\">pic.twitter.com\/QNrqkUdScz<\/a><\/p>\n<p>\u2014 Curve Finance (@CurveFinance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CurveFinance\/status\/1696988969647448170?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\">August 30, 2023<\/a><\/p>\n<\/blockquote>\n<hr \/>\n<p style=\"text-align: center\">Is your portfolio green? Check out the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/calculator\/curve-dao-token-profit-calculator\" data-wpel-link=\"internal\">CRV Profit Calculator<\/a><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400\">The drop in TVL is likely due to the ongoing capital flight from Curve since its <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/curve-finance-loses-millions-as-hackers-exploit-the-vyper-bug-heres-a-rundown\/\" data-wpel-link=\"internal\"><span style=\"font-weight: 400\">reentrancy hack<\/span><\/a><span style=\"font-weight: 400\"> on 30 July. In that hack, an attacker exploited a vulnerability in Curve\u2019s code to steal about $73.5 million worth of crypto assets.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The hack shook confidence in Curve, as many users have since withdrawn their funds from the platform. Since the hack, Curve\u2019s TVL has dropped by 31%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">As of this writing, assets worth $2.65 billion were locked in Curve, with Base contributing less than 1%. Only $15 million in liquidity has been supplied to the three dynamic liquidity pools on Base since their launch, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/protocol\/curve-dex\" data-wpel-link=\"external\">DefiLlama<\/a> data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">These pools include 3c (USDbC, axlUSDC, and crvUSD), cbeth (ETH and cbETH), and tricrypto (crvUSD, tBTC, and ETH).\u00a0<\/span><\/p>\n<h4><b>CRV decline remains consistent, but there is a catch<\/b><\/h4>\n<p><span style=\"font-weight: 400\">At press time, CRV exchanged hands at $0.4406. Impacted by the hack, the alt\u2019s price has declined by 22% in the last month, data from <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/currencies\/curve-dao-token\/\" data-wpel-link=\"external\"><span style=\"font-weight: 400\">CoinMarketCap<\/span><\/a><span style=\"font-weight: 400\"> revealed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">In the wake of the hack, many feared that Curve founder Michael Egorov\u2019s collaterals on Aave were at risk of liquidation, thus putting their CRV investments in harm\u2019s way. On-chain liquidity for CRV thinned out shortly after the hack, and the token\u2019s price has since plummeted as investors have increasingly \u201cdumped their bags.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">An on-chain assessment of the demand for the alt in the last month revealed a significant decrease in the count of daily active addresses involved in CRV trades and the count of new addresses created to trade the alt.<\/span><\/p>\n<div id=\"attachment_340404\" style=\"width: 2570px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-340404\" class=\"size-full wp-image-340404\" src=\"image\/svg+xml,%3Csvg%20xmlns=\" alt=\"\" width=\"2560\" height=\"867\" data-lazy-srcset=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023.png 2560w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023-300x102.png 300w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023-1024x347.png 1024w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023-768x260.png 768w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023-1536x520.png 1536w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023-2048x693.png 2048w\" data-lazy-sizes=\"(max-width: 2560px) 100vw, 2560px\" data-lazy-src=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023.png\" \/><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-340404\" class=\"size-full wp-image-340404\" src=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Curve-on-Arbitrum-CRV-07.41.14-02-Sep-2023.png\" alt=\"\" width=\"2560\" height=\"867\" \/><\/a><\/p>\n<p id=\"caption-attachment-340404\" class=\"wp-caption-text\">Source: Santiment<\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">On a daily chart, key momentum indicators trended downward. This confirmed the fall in CRV accumulation since the 30 July exploit. For example, CRV\u2019s Relative Strength Index (RSI) rested at 27.43, and its Money Flow Index (MFI), also positioned beneath its center line, was 48. 61.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Likewise, the alt\u2019s On-Balance-Volume (OBV) plunged by 14% in the last month. When an asset\u2019s OBV declines in this manner, it means that the volume of selling has outweighed the buying.\u00a0<\/span><\/p>\n<hr \/>\n<p style=\"text-align: center\">Read\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/predictions\/curve-dao-token-price-prediction\" data-wpel-link=\"internal\">Curve Finance\u2019s [CRV] Price Prediction<\/a> 2023-24<\/p>\n<hr \/>\n<p><span style=\"font-weight: 400\">However, while CRV\u2019s price declined, its Chaikin Money Flow (CMF) embarked on an uptrend on 24 August, creating a bullish divergence. This indicator measures the amount of money flowing into or out of an asset over a period of time.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A CMF bullish divergence occurs when the buying pressure for an asset is increasing even while its price continues to dawdle. It often acts as a precursor to a price rally. Should sentiment improve, CRV\u2019s price is expected to experience a rebound.\u00a0<\/span><\/p>\n<div id=\"attachment_340401\" style=\"width: 2570px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-340401\" class=\"size-full wp-image-340401\" src=\"image\/svg+xml,%3Csvg%20xmlns=\" alt=\"\" width=\"2560\" height=\"1109\" data-lazy-srcset=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47.png 2560w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47-300x130.png 300w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47-1024x444.png 1024w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47-768x333.png 768w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47-1536x665.png 1536w, https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47-2048x887.png 2048w\" data-lazy-sizes=\"(max-width: 2560px) 100vw, 2560px\" data-lazy-src=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47.png\" \/><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-340401\" class=\"size-full wp-image-340401\" src=\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/CRVUSDT_2023-09-02_07-33-47.png\" alt=\"\" width=\"2560\" height=\"1109\" \/><\/a><\/p>\n<p id=\"caption-attachment-340401\" class=\"wp-caption-text\">Source: CRV\/USD, TradingView<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Journalist Posted: September 3, 2023 On 30 August, Curve Finance launched three dynamic liquidity pools on Base. However, its TVL has continued to decline.\u00a0 As part of its attempt to pull in new liquidity, decentralized exchange (DEX) for stablecoins Curve Finance [CRV] launched new pools on the Layer-2 (L2) platform Base on 30 August.\u00a0However, the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":148792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-148791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/148791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=148791"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/148791\/revisions"}],"predecessor-version":[{"id":148794,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/148791\/revisions\/148794"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/148792"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=148791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=148791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=148791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}