Amidst the DeFi Rout, Curve (CRV) is the Biggest Loser

The biggest loser of the ongoing DeFi winter is the decentralized exchange Curve’s token CRV.

Launched in August amidst the controversy of being pre-mined, it didn’t take much time for the token to make its all-time high at $9.60 with the DeFi bull run going on at full speed.

Since then, it has been only on a downtrend, down nearly 93% from its ATH, in just over a month. At the time of writing, CRV/USD has been trading at $0.650.

“This chart is going to look like ZEC,” said trader Moon Overlord. The ZEC price chart is mostly a straight horizontal line, which doesn’t look much different from CRV.

Volume is no different either on the platform. On Sept. 14, Curve recorded its highest volume of $419 million, and since then, it has been on a decline hitting $34.5 million yesterday, last seen in August when it was on an uptrend.

The crazy inflation doesn’t help either, and the token continues to buckle “under continual inflation sell pressure.”

“CurveFinance is a phenomenal product… But given the insane inflation, hard not to be bearish CRV,” said Jason Choi of crypto fund The Spartan Group.

The Power of DEXs

Curve is currently the third-largest DeFi project in terms of total value locked at $1.5 billion, just around its peak. Removing the endogenous asset from the protocol leaves just $339 million.

This DEX is optimized for low slippage swaps between assets pegged to the same value.

It’s clone Swerve has also lost about 89% of its value since its peak. Once having $941 million in TVL and recording over $220 million in volume, Swerve has crashed to $46 million and $3.6 million, respectively.

Uniswap exchange beats Curve as the dominant (21.26%) force in the sector, which has $2.3 billion of Total Value Locked (TVL) — a new all-time high. The highest volume ever recorded on Uniswap has been about a billion twice in a row, which has now come down to just above $300 million. However, UNI has also lost more than half its value since the ATH.

However, both are uncomparable as Curve’s volume is mostly from stablecoins.

Moreover, Uniswap even surpasses the volume of leading cryptocurrency exchanges. In the month of September, compared to Coinbase’s $13.6 billion, Uniswap did $15.4 billion in volume, as per Dune Analytics.

“Uniswap overtook Coinbase in volume in September. Even while facing an onslaught of competitive forks, such as Sushiswap. This is impressive,” noted trader and economist Alex Kruger.

These past few months actually belongs to DEXs, recording $20.5 billion of volume in the last 30 days.


Monthly DEX Volume By Project

During this summer cycle, the majority of the DeFi tokens have lost a significant amount of their value today, from their highs hit during August 15 and Sept. 1st.

While CRV is at the top, Sushi and bZx aren’t much behind with their 91.5% and 90% losses, respectively. Others have slid down 88% to 35%. During this period, the Ethereum price also dropped 28.7%, currently trading at $351.

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Author: AnTy

Poll Hints Majority Doesn’t See XRP Hitting $1 Ever, Is Ripple at Fault?

  • XRP is the second biggest loser among the top 10 cryptocurrencies of 2019
  • The digital asset to face selling pressure from Ripple and adoption issues within the network
  • XRP never hitting $1 or as soon as next year, some extremely bullish with $589 next month

The third-largest cryptocurrency XRP is down 95% from its all-time high of $3.92. And according to the majority of the voters to the Mati Greenspan, founder of investment firm Quantum Economics’ poll, the digital asset isn’t ever going to $1.

While 39.4% of the respondents out of the total 1,831 voters, till now, sees $1 “never” happening, with 37.5% votes, a close second comes 2020. So, overall it’s more of a tie between $1 never coming or happening next year.

Some crypto enthusiasts (12.6%) also see the digital asset climbing to $1 in 2027 while a few (10.5%) are extremely bullish, seeing $589 next month.

XRP Continues to Lose

The first time, XRP hit $1 was during the 2017 bull run on December 21st. But since hitting its peak in January 2018, XRP has been crashing. It is the second biggest loser among the top 10 cryptocurrencies after Stellar Lumens of 2019.

Currently, we are trading at $0.192 and went as low as $0.186 last week, which was 27-months low.

But why is the third-largest cryptocurrency dragging on so much?

According to Greenspan, “XRP tokenomics is a bit funny that way.”

What’s Behind its Poor Performance?

The former analyst at eToro pointed out two main issues with XRP’s poor performance. The first one is Ripple holds a large portion of XRP tokens and selling them into the rallies.

The company owns 60% of all the XRP ever created. Also, Ripple has sold more than $1.2 billion growth of XRP since Q4 of 2016 and the company books its XRP sales as revenues, notes Messari. Out of the $1.5 billion Ripple raised since it was founded in 2012, $1.2 billion belongs to XRP sales.

“XRP tokenomics” is to blame.

“XRP tokenomics” is to blame.

“XRP tokenomics” is to blame.

However, recently, on this, Ripple CTO David Schwartz replied,

“Nobody buys XRP to give Ripple money to do things. We were vc/angel-funded and were going to build regardless. We started selling XRP only after there was a market price and for negligible amounts compared to our other funding.”

The second issue behind the poor price performance of Ripple’s XRP token according to Greenspan is

“Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token.”

As Ripple announced during its SWELL 2019 event, the company has now more than 300 banks and financial institutions as partners. And currently, only about 17 of them use XRP to move funds.

The market in consolidation, People returning to the King

In the long term, however, prospects he said are “quite bullish.”

But in the short term, XRP faces selling pressure from Ripple itself and adoption issues within the network.

In a separate tweet, Greenspan explained that the market is currently in a “great consolidation” period where the entire is returning to the king, Bitcoin.

“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth” added Greenspan.

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Author: AnTy