In this guide, we will voice our own and market’s opinion on CRV future while discussing Curve DAO Token price forecast for 2022 and beyond.
Please bear in mind that you should take this and any other prediction with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a novel, highly volatile financial asset like Curve DAO Token.
Now, let’s head into it. Before we delve deep into the Curve DAO Token price prediction and answer questions if CRV is a good investment or not, why will CRV succeed or fail or why will Curve DAO Token price rise or drop, let’s quickly throw a glance at what is CRV and its to date history.
What is Curve DAO token
Curve DAO Token (CRV) is an Ethereum token that powers Curve.fi, a decentralized exchange and automated market maker protocol. The protocol is designed to make it easy to swap between similar ERC-20 tokens, primarily stablecoins (like USDC and DAI) and Ethereum-based Bitcoin tokens (like WBTC and renBTC).
How Does Curve DAO Work?
The Curve DAO token powers the Curve.fi financial platform, which acts as an exchange and automated market maker. AMMs enable a different model of trading where assets can be exchanged permissionlessly and in an automated manner. Instead of relying on order books, trading is conducted automatically through liquidity pools.
Liquidity providers are incentivized to create pools and deposit tokens. Each pool contains certain token pairs which are supported within that liquidity pool. Pools contain similar assets to minimize impermanent loss and provide greater chances for returns.
The exchange market is based on liquidity pools, while the protocol connects users to various exchange markets to find the best fee rates. That way, Curve.fi ensures low slippage and enables traders to maximize their returns. Every time a network user makes a trade on the Curve network, liquidity providers are rewarded with a share of the trading fee for their participation.
What Makes Curve Unique?
Curve has gained considerable attention by following its remit as an AMM specifically for stablecoin trading.
The launch of the DAO and CRV token brought in further profitability, given CRV’s use for governance, as it is awarded to users based on liquidity commitment and length of ownership.
The explosion in DeFi trading has ensured Curve’s longevity, with AMMs turning over huge amounts of liquidity and associated user profits.
As such, Curve caters to anyone involved in DeFi activities such as yield farming and liquidity mining, as well as those looking to maximize returns without risk by holding notionally non-volatile stablecoins.
The platform makes money by charging a modest fee which is paid to liquidity providers.
CRV Price Prediction For The Next 90 Days
The whole crypto world is on a verge of a full-fledged bear market. Bitcoin has slumped 50% from its all time high amid the broader market drops impacted by raging inflation and US Fed rate increases. Investors are selling risky assets and moving into more stable markets. Crypto is still perceived as a very risky play and hence the sell off. Our algo still sees a some green in 2022, especially in the second part of the year. This is reflected in our 2022 predictions. Right now, Bitcoin needs to find a local bottom before we can move in the opposite direction and reverse the trend. Once Bitcoin settles in the new price range, altcoins will start to do the same - we have witnessed this scenario dozens of times in the distanced and more recent history. Our price prediction model is bearish for the next 90 days with a hint of a bull market at the turn of the quarters from Q1 to Q2. We expect whales and other bigger players in the market to finish filling their bags around that time which will cause a typical and sudden crypto spike. CaptainAltcoin team created a price prediction model with a multi-faceted approach to crypto that takes into account both technical analysis and fundamental assessment of each project. Fundamentals that we evaluate are team, tokenomics, use case, community, marketing efforts, liquidity and exchange availability, hype & speculative potential and some other proprietary factors developed in our crypto lab.
Below is a tabular overview of how will CRV develop in the short-term (for the next 90 days), according to our prediction model:
Curve DAO Token Price Prediction 2022
Our prediction model sees a temporary switch to a bear market at the beginning of 2022 before we move onto another leg up in Q3 & Q4 of 2022.
CRV Price Prediction 2025 – 2030 – 2040
Our prediction model sees CRV reaching new highs in 2025:$ 3.98
CRV price in 2030 & 2040 should be a couple of orders of magnitude higher than our 2025 prediction.
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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com