Experts and analysts predict that in the long run, we will see an upward trend in the Curve Finance project, citing attractive shareholder profits, protocol revenue, and competition in DeFi protocols.
to the the report After the sharp correction of prices in the market, the Coin Telegraph made it possible for traders to monitor the market closely and be able to find a project with suitable fundamental conditions.
One of the projects that has attracted the attention of many researchers, including Delphi Digital researchers, is Cro Finance. Cro Finance is a decentralized exchange for stable coins that focuses on providing in-chain liquidity using advanced link curves. A bond curve is a mathematical curve that defines the relationship between the price and supply of a particular asset.
Profit opportunities and aspiring owners
One of the main factors on which analysts have a positive view of Crowe is the high dividends of CRV tokens on its platform and other defa protocols.
Those who wish to invest directly in CRV on the Cro Finance platform receive an average of 21% annual dividend. On the other hand, they also have the right to vote in the Cro Finance exchange. With this voting right, investors can participate in protocol changes. By locking the CRV for voting, users can use a 2.5-fold liquidity ratio.
Initially, the number of CRV tokens locked in the protocol to participate in governance was supposed to exceed the supply of tokens (rather than the tokens offered) by August 2022, but this was due to increased demand for Crow deposits after the launch of Convex Finance in Convex Finance. May 2020 will occur much sooner than expected.
Given the current situation, the rate of capital lock-in is expected to exceed the supply rate by August this year.
This could potentially add to the upward pressure on the Crow market. If demand continues to rise and supply available to Crow falls, we will see a rise in Crow prices in the long run.
Competition for CRV deposits
Cro Finance has been able to become one of the most important parts of Difai thanks to its ability to provide liquidity to its stable coin in different ecosystems and its combination with low risk and high profit.
Due to the increasing importance of CRV, the demand for CRV and the ability to participate in CRV governance issues that comes with having a CRV has also increased.
Yearn Finance and Canox Finance are Crowe’s two main competitors. About 29% of CRV tokens are currently available on both platforms.
Rising demand for CRVs has made the two platforms compete for the most attractive incentives for token holders. Canox Finance currently offers 87% annual interest for CRV and 45% interest on depositing this token in Irene Finance.
The current demand in the field of defense and combining it with the double demand for the Cro Finance protocol makes the long-term upward outlook for the price of this digital currency more positive.
Earnings through the provision of stable coin liquidity
The third factor that analysts are considering is revenue generation through the Crow Protocol in bullish markets. Demand for stable coins fluctuates in both ascending and descending markets.
“Delphi Digital says:
Crow is one of the defy protocols with a price rate of around 39 for a 30-day income.
In addition to increasing revenue, Crow Stable Coin-enabled components have helped it withstand a sharp drop in locked-in value, unlike other defy platforms. At present, $ 9.34 billion in value is locked into the Crow portfolio, making Crow the largest defa platform in this regard.
The combination of high locked-in value and the ability to generate revenue through equity assets has made Crewe one of the most important investment protocols. Analysts believe that given these factors, Cro Finance could be a good investment option in the future.