With the current liquidity provided at the February level, new data from the on-chain analytics platform has shown a uniform decline in indicators of the Curve Finance ecosystem.
Located within the Ethereum network, Curve Finance is a Decentralized exchange focusing primarily on stablecoin trading.
According to a reputable source, Curve Finance ranks as the 5th DEX with the most significant total locked value (TVL). At the time of writing, the protocol’s TVL stands at $5.09 billion.
After the boom in the decentralized finance (DeFi) space in 2021, due to the influence of financial markets on a larger scale, countless DeFi hacks and scams, along with the general decline of the cryptocurrency market have caused DeFi activity on protocols this year to decline.
Also affected by the overall decline in the market, the total liquidity offered on the Curve has decreased by 81% since the beginning of the year. It dropped from $27.17 billion in January to $4.01 billion at the time of writing.
Curve Finance is a protocol with more than 100 different liquidity pools. With a TVL of $1.4 billion, stETH is the largest group. Therefore, this pool is most affected by the overall decline that DEX suffers.
At the time of writing, the total liquidity is $1.41 billion. According to analysis from the beginning of the year so far, this number has decreased by 67%. On January 1, the total liquidity provided by this pool was $4.32 billion.
In addition to the total liquidity provided by the stETH pool on Curve Finance plummeting, the annual percentage yield (APY) paid as a reward to Staking users entering the group has dropped significantly since June 15.
At the beginning of the year, APY staking rewards were pegged at 0.03%. It rose to a high of 0.68% on June 15, then plummeted.
Moreover, the use of liquidity on the stETH pool on Curve Finance has declined continuously over the past six months. A pool’s liquidity is the ratio of its trading volume to its total liquidity.
On June 13, StETH’s liquidity utilization performance reached a high of 1.82%. However, it was at 0.03% at the time of writing and has fallen 98% over the past six months.
According to CoinMarketCap, Curve DAO Token (CRV), the native token of DEX, is trading at $0.895 at the time of writing. In the last month, the price of this asset has fallen by 17%.
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