• Curve, the stablecoin swapping service, saw an 11% gain in its token price due to interest from crypto traders.
• The upcoming crvUSD token is much awaited by crypto circles.
• Tokens related to decentralized stablecoins have become the latest driver of crypto markets following a SEC allegation that Paxos‘ BUSD offering was an unregistered security.
Curve Token Price Rises on Crypto Traders‘ Focus
Tokens related to decentralized stablecoin protocols gained in the past 24 hours following troubles at Paxos‘ BUSD offering. Curve, a stablecoin swapping service, saw its CRV tokens increase by 11% amid broader market demand for decentralized stablecoins. The move came as tokens associated with such protocols became the latest driver of crypto markets.
Upcoming crvUSD Token Much Awaited
Curve does not offer native stablecoins yet but its upcoming curve USD (crvUSD) token is highly anticipated in crypto circles. Plans for the dollar-pegged asset first became public in June and Curve recently teased the issuance of crvUSD by stating an ongoing proposal would be required for it to function autonomously. This likely served as catalyst for traders and further drove up demand for CRV tokens which had over $770 million in trading volume on exchanges.
What Does Curve Offer?
Curve uses smart contracts instead of middlemen to provide financial services such as borrowing, trading and lending with users earning annual yields of up to 4%. It has become one of the most popular and influential protocols among the community – locking up $4.6 billion worth of tokens – while CRV traded over $1 on Tuesday reaching early-January levels despite an overall market decline with bitcoin losing 1%.
SEC Alleges BUSD Unregistered Security
The surge in demand comes days after CoinDesk reported Paxos is under investigation by New York Department of Financial Service and a Wall Street Journal report on Sunday alleging that BUSD was unregistered security according to U.S Securities and Exchange Commission (SEC).
Overall, interest from crypto traders continues to drive prices higher for tokens related to decentralized stability protocols even amidst overall market declines or regulatory challenges surrounding other offerings such as Paxos‘ BUSD token. For now, attention is largely focused on Curve’s upcoming crvUSD token which promises autonomous functioning thanks to an ongoing proposal allowing external pricing data supply pools with pricing data.