• Curve Finance witnessed steady weekly growth in the last month of 2022, despite not seeing an uptick in TVL.
• The platform had a consistent growth in terms of volume right until the end of the year 2022.
• This may be attributable, at least in part, to the widespread fear, uncertainty, and doubt (FUD) surrounding centralized exchanges after the FTX collapse.
In the final months of 2022, the decentralized finance (DeFi) platform Curve Finance experienced a consistent growth in terms of volume. Despite this, the token’s Total Value Locked (TVL) did not see the same uptick. This was in stark contrast to many other DeFi projects which experienced a surge in TVL.
Data from DefiLlama revealed that Curve volume increased every week in December, even during the holidays. It was higher than any week in October, even though November was a busier month for the platform than December. Ethereum (ETH) was at the forefront of the transactions that occurred on the platform.
What could be the cause of this consistent growth? It is likely that the fear, uncertainty, and doubt (FUD) surrounding centralized exchanges following the collapse of FTX was a major factor in driving many investors to the decentralized space. This resulted in higher levels of engagement with DeFi platforms, such as Curve.
In addition, Curve’s automated market maker (AMM) pool was designed to ensure liquidity for traders. This offers low slippage and low fees for users, making it an attractive option for traders. The platform also offers a range of products, such as stablecoins, lending, and yield farming, which further attracts traders to the platform.
As Curve’s volume and transaction activity continues to rise, it is expected that the platform will experience further growth in the coming year. This could potentially result in a surge in the price of its native token, CRV. Although the price of CRV has remained relatively unchanged in the last month of the year, the consistent growth of the platform suggests there is potential for growth in 2023.