- CRV is the native token of Curve Finance, a decentralized exchange protocol enabling the exchange or swap of stablecoins and ERC-20 tokens
- The token is considered a good investment option for various reasons, such as future potential, Good Total Value Locked, and many more
Decentralized Finance (DeFi) has revolutionized the traditional financial system. DeFi has created a craze among people and noticed significant growth. This has created an increase in platforms with DeFi technology. One such DeFi protocol is Curve Finance, which has its own native token called CRV.
Curve Finance is an Ethereum-based decentralized protocol that allows users to exchange or swap stablecoins and ERC-20 tokens. The protocol takes help from the Automated Market Makers (AMM), which define the price of an asset with the help of mathematical formulas or calculations.
CRV is the native utility token of the protocol. This token is based on the ERC-20 standard and helps the users with transactions on the platform. It gives the users voting rights with the help of locking tokens or staking them in the protocol. The more time you lock the token, the more power you get for governance purposes.
This is just an introduction to what Curve Finance is and what CRV is. Now moving ahead to the main topic, we will discuss the top 5 reasons why it is considered the best DeFi investment.
Top 5 Reasons Why CRV is the DeFi Investment of The Year
1. A Popular Token
The token was much more popular when it was just launched, as Curve Finance had already established itself in the world of DeFi. It has always performed well and always set a mark in the eyes of the netizens. On Twitter, it has around 346.4k followers, which shows that it has built a strong community in the world of the internet.
2. Utility
Second, for which it is considered a good investment option because of its utility. It has various utilities, such as helping you earn passive income or doing yield farming with its help. You can also receive a decent amount of rewards by just staking your token.
3. Total Value Locked (TVL)
It is a metric that is used to measure the total value of digital assets that are locked into a particular DeFi platform. The Higher the TVL, the more trustworthy the dApp would be. Currently, according to DefiLlama, the TVL of Curve Finance is $3.711 Billion, which is far better than its competitor, Convex Finance, which has a TVL of $3.156 Billion.
4. Coin Market Cap Ranking
The Coin Market Cap Ranking is also a good indicator of whether a coin is the best investment option or not. The ranking tells us about the market capitalization of a particular crypto coin or token. Currently, the token has a ranking of 63rd and a circulating supply of 8.69 Million CRV coins. It has a better ranking than its competitors in the DeFi world.
5. Future Potential
Many Analysts believe that the token has future potential. Its price will reach $1.62 in 2024. The current price is $0.75. Additionally, numerous experts think that in 2028, the value of it will increase to $5.67 and bring a return on investment of roughly 813.5%. This is really a great return on investment.
These five reasons justify the fact that the CRV token has potential and will see significant growth in the near future.
