Convex Finance is known to face stiff competition from Yearn.Finance. However, it seems that its explosive growth has surpassed the latter. With a significant surge on March 2, the DeFi protocol token reached a market cap of $1.2 billion. In doing so, it defeated Curve DAO, the cause of its existence.
Convex Finance Beats Curve
It is common knowledge that the whole purpose of Convex Finance is to absorb CurveDAO’s liquidity and encourage investors to put more of their CRV into play.
Before Convex Finance, Yearn.Finance already offered to dominate that space. However, it couldn’t work.
Consequently, on March 2, Convex Finance became the fifth largest DeFi protocol with a market cap of $12.55 billion. On the contrary, Yearn.Finance was way down in fourteenth place with just $3.54 billion in TVL.
In fact, convex stakeout data revealed that the dApp has managed to outperform YFI by a mile in less than a year since its May launch.
By May, YFI had locked in about 14 million CRV when CVX launched. Interestingly, staking on Convex grew rapidly and the DeFi protocol managed to dominate 50% of all CRV locked. Currently, it has 186 million CRV.
YFI, on the other hand, has managed to acquire only 24 million CRV so far.
CurveDAO, the facilitator of Convex Finance, the largest dApp and decentralized exchange, is only $5.8 billion ahead in TVL.
The growing demand and commitment in Convex Finance has led to the value of the token soaring. There was even a large increase on 1 and 2 March.
Nevertheless, in line with broader market indications, CVX fell 65.1% over the past two months. After its all-time high of $49.9, the altcoin traded at $17.4 until three days ago.
Since then, the altcoin has recovered by 26.54%. In fact, CVX was up more than 63% at some point in the day on March 2.
Now, the bearishness of the market over the past two months has stunted the growth of Convex Finance users. For example, February registered a 27% drop in monthly users from December’s high of 12,566.
It could change this month, however, as the market may be on the road to recovery.
This post Could this curve-beating alt’s 63.3% rise be a sign of a surefire recovery?
was published first on https://ambcrypto.com/could-this-curve-beating-alts-63-3-uptick-be-a-sign-of-surefire-recovery/