Curve DAO Token (CRV), the native token of Curve protocol, has rallied more than 21% over the past 24 hours.
CRV, the 60th-largest token with a market capitalization of nearly $760 million, is changing hands at $1.41.
The primary driver behind today’s bullish price action is the upcoming launch of Curve stablecoin.
The launch of an over-collateralized stablecoin by Curve was confirmed by Michael Egorov, the Founder of Curve, at a web3 summit.
“Over-collat. That’s all I can say for now,” said Egorov.
Curve joins leading DeFi protocols, including Aave and Maker, in the race to launch a decentralized over-collateralized stablecoin.
Unlike more centralized offerings à la Tether’s USDT and Circle’s USDC, over-collateralized stablecoins are backed by volatile assets like Bitcoin, EthereumEthereum and a basket of other cryptocurrencies.
Over-collateralization helps the stablecoin retain its dollar peg amid crypto’s notorious volatility.
Curve and the crypto markets
Despite today’s tremendous run-up, the Curve’s native governance token is still down 97.67% from its all-time high of $60.50 recorded in August 2020, according to data from CoinMarketCap.
A total of 75,393 wallets own CRV tokens, according to Etherscan, up 0.052% from the previous day.
The Total Value Locked (TVL) on the Curve protocol currently holds at a total of $6.02 billion and another $765 million staked in the protocol, suggests data from DefiLlama.