Curve Finance Sees Record 51 Million CRV Locked by Customers, Surpassing Previous High
Curve Finance customers have locked in a record-breaking 51 million CRV tokens final week, surpassing the earlier file of 24 million from October 2022. This surge in locked tokens signifies a renewed curiosity within the decentralized trade and governance of the protocol.
According to crvhub.com, the inflow of 51 million CRV tokens, equal to $14.7 million, within the seven days ending July 8 brings the total deposited to 796 million CRV, or $230 million. This significant increase in locked tokens is more than double the previous all-time high and shows a potential shift towards governance and fee distribution.
Michael Egorov, the founder of Curve Finance, noted that the spike in locked tokens could lead to a new wave of competition among protocols bidding for influence over Curve. Users locking CRV tokens to obtain veCRV gain voting rights and fee-earning potential within the system, but must commit to a lock period of up to four years.
Despite the surge in locked tokens, Curve’s Total Value Locked (TVL) has not seen a significant increase. While Curve’s TVL currently stands at $2 billion, up from $1.8 billion at the beginning of 2024, it is still below last year’s peak of $4.3 billion. However, Curve remains in second place among all decentralized exchanges, trailing only Uniswap.
Although the increase in locked CRV tokens has not translated into higher financials for the protocol, with Curve Finance’s market capitalization at $346 million, the lowest since December 2022, there is optimism within the team. The spike in CRV locks may indicate a return to the intense competition seen in the “Curve Wars” of 2021, where protocols vied for greater influence and rewards within the ecosystem.
While CRV token prices have experienced volatility, hitting an all-time low before rebounding, the increase in locked tokens signals a potential shift in user behavior towards governance and long-term commitment within the Curve Finance ecosystem.