DeFi tokens and protocols began struggling on May 19th after the price of Bitcoin fell to $30,000. It seems that Bitcoin may have entered a “compression” phase since then, but DeFi has yet to recover to the levels registered before the market crash.
Curve DAO token is one of the few DeFi tokens to experience a strong recovery over the previous two weeks as a result of reduced Ethereum gas fees, the release of Convex Finance, and the DeFi sector establishing a bottom for it.
CRV has registered an increase of 55% since the first day of this month, experiencing an impressive 150% rally since May 23.
One important reason for this increase is Convex Finance (CVX), which is an optimizer for the Curve Protocol that allows swaps of similar assets such as stablecoin to stablecoin transactions.
The Convex protocol was released on May 17th and has enjoyed a lot of popularity as a result of yields as high as 52.16%. The total value locked on the protocol has now gone past $2.3 billion, and stakers on the protocol have earned $4.3 million in total revenue.
On top of that, the low fees on Ethereum have let many users return to their go-to DeFi protocols which also include Curve.