This surge highlights a renewed interest and activity within the veCRV ecosystem.
The Convex Finance token (CVX) price experienced significant gains over the last 24 hours, driven by record inflows into the vote-escrowed CRV (veCRV) ecosystem. According to data from Curve Finance, these inflows totaled 19.76 million CRV tokens, a remarkable six times the weekly inflation rate. This surge highlights a renewed interest and activity within the veCRV ecosystem.
Inflows into veCRV are already 6x the inflation of this week. These include direct locks, as well as locks via @ConvexFinance, @StakeDAOHQ and @yearnfi.
This is the highest weekly inflow into CRV locking in years! pic.twitter.com/ADlDXWq5Zz
— Curve Finance (@CurveFinance) June 17, 2024
Given this backdrop, it’s no surprise that Convex Finance was a major beneficiary. The price of its native token, CVX, doubled to $4.55. These substantial inflows included direct token locks and locks facilitated through platforms such as Convex Finance, StakeDAO, and Yearn.
Convex Finance Leads the “Curve Wars”
CRV is the native token of Curve Finance, used to incentivize liquidity providers and in protocol governance. Users can lock up their CRV to acquire veCRV tokens, with lock-up periods ranging from one week to four years. The longer the lock-up period, the more voting power and rewards users receive. This mechanism allows veCRV holders to vote on CRV emissions, fostering competition among protocols to accumulate the most veCRV tokens and offer higher rewards in their liquidity pools. This competition, often called the “Curve Wars,” sees Convex Finance, StakeDAO, and Yearn emerging as the dominant players.
Convex Finance, in particular, allows liquidity providers on Curve Finance to stake their tokens on its platform, earning a share of trading fees in cvxCRV tokens without needing to provide liquidity directly on Curve Finance. Convex Finance holds the largest share of veCRV tokens, with over 41%, followed by Yearn Finance and StakeDAO.
In the past 24 hours, trading volume for the CVX/USDT perpetual trading pair on Bybit surged by 9,100%, reaching $134.5 million. Data from Santiment indicates that total open interest in CVX increased by 151%, reflecting heightened price volatility as traders seek to capitalize on the token’s rapid price movements.
Moreover, the market cap of CVX surged to $415 million, ranking it as the 155th-largest digital currency. Its daily trading volume also spiked by 2,800%, reaching $150 million, underscoring the intense trading activity and interest in CVX.
