The CRV price has been in a strong bullish trend in the past few days. Curve rally accelerated after the network announced that it will launch a new stablecoin. It rose to a high of $1.45, which was the highest point since May 31st of this year. It has risen by more than 157% above the lowest level this year, bringing its total market cap to over $569 million.
Curve DAO to launch a stablecoin
The CRV price has been in a strong bullish momentum in the past few days as investors move to blue-chip DeFi tokens. The thinking is that these platforms have gone through a major stress test with the recent crash of cryptocurrencies and the implosion of major platforms like Terra and Three Arrows Capital.
Another theory is that the leading DeFi players like Aave, Uniswap, and Lido will thrive just as companies like Google and Yahoo thrived after the dot com bubble.
Curve DAO price is soaring after the developers announced that they will launch a new stablecoin that will help to facilitate payments in the ecosystem. The stablecoin will be significantly different from the popular ones like Tether and USD Coin.
The difference is that it will not be backed by anything like the US dollar or gold. Instead, it will be an over-collateralized coin like Tron’s USDD. These coins are usually backed by volatile assets like Bitcoin and other cryptocurrencies.
Curve DAO’s stablecoin launch comes at a time when many other decentralised platforms are launching their own coins. Maker was among the first ones to launch its token when it launched Dai. Tron recently launched USDD that has a market cap of over $700 million while Near Protocol has USN.
The risk for these algorithmic coins is that they could easily lose their peg when volatility surges. In addition to Terra UST, other coins that lost their peg are Dei and Neutrino.
CRV price prediction
The four-hour chart shows that the Curve DAO price has been in a strong bullish trend in the past few weeks. As it rose, it managed to move above the upper side of the ascending channel pattern that is shown in blue.
The coin also rose above the 25-day and 50-day moving averages while the Relative Strength Index and the MACD have continued rising.
Therefore, the coin will likely continue rising as bulls target the next key resistance at $1.5. After hitting this psychological level, the coin will likely pull back and retest the upper side of the channel.