Why the DeFi Token Led

CRV, the native cryptocurrency of decentralized lending and borrowing protocol Curve Finance, has become the top-performing altcoin out of the top 100. In the last 24 hours, CRV’s price has increased by approximately 10%.

This development comes as many cryptocurrencies have struggled to deliver strong performances since the start of the week. Here’s a breakdown of how the altcoin is leading the pack.

Curve Whales, Investors Hold the Line

Yesterday, Curve’s price stood at around $0.98. However, since then, it has surged to $1.17, outpacing other altcoins in the market. Notably, CRV has also outperformed other tokens with Decentralized Finance (DeFi) fundamentals, such as Aave (AAVE) and Ethena (ENA).

According to BeInCrypto’s analysis, CRV’s strong performance is largely driven by sentiment among short-term holders. Data from IntoTheBlock shows a significant rise in the number of short-term CRV holders over the past seven days.

For context, these addresses represent unique wallets that have acquired the altcoin within the last 30 days. An increase in these addresses indicates a bullish outlook for short-term price action, while a decrease would suggest the opposite. Therefore, this surge in short-term holders indicates that CRV’s value could continue to climb.

Furthermore, on-chain data from Santiment from Santiment also shows that crypto whales also had a part to play. Typically, when whales accumulate more tokens, the price tends to increase. On the other hand, when they sell, it causes a cryptocurrency’s price to drop,

As seen in the image below, CRV addresses holding 1 million and 10 million tokens have increased their balance. 

On December 5, the balance of these addresses was 368.24 million. Today that has increased to 376.38 million. Should that continue, the CRV’s price might continue to increase.

CRV Price Prediction: Still Bullish

On the 3-day CRV/USD chart, the Bull Bear Power (BBP) has held on to the positive zone. The BBP compares the strength of buyers (bulls) to sellers (bears). When the indicator’s reading is positive with green histogram bars, bulls have the upper hand.

On the other hand, a red bar with a negative reading favor bears. Since it is the former for CRV, it implies that the altcoin’s value might continue to jump in the coming days.

If the trend remains the same, the CRV could hold its ground as the top-performing altcoin, with possible targets above $1.35 and as high as $1.70. However, if bears take control, this token of the DeFi protocol could slide to $0.62.