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Curve Finance (CRV) Eyes 900% Increase in Trading Volume Following Binance USD (BUSD) Turmoil

Tue, 02/14/2023 - 15:47
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Gamza Khanzadaev
$1 billion trading volume generated on Curve Finance (CRV) following SEC enforcement against Binance USD (BUSD)
Curve Finance (CRV) Eyes 900% Increase in Trading Volume Following Binance USD (BUSD) Turmoil
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According to DefiLlama, trading volume on decentralized finance platform Curve Finance rose 896.12% in the past 24 hours to over $1 billion. It was not only the highest for the platform this year, but also the third highest in history, behind only the collapse of FTX and the Magic Internet Money (MIM) drama.

$1 Billion Outflows Recorded on Binance in Wake of BUSD News: Details

This time, the trigger for a ninefold increase in trading volume on Curve Finance was a court investigation initiated by the Securities and Exchange Commission against BUSD, aka Binance USD. Associated with one of the world's largest crypto exchanges, the stablecoin fell foul of the regulator, which suddenly decided to declare it an unregistered security and prohibit the issuer, represented by Paxos, from minting new tokens.

When crvUSD?

Curve Finance, on the other hand, as probably the largest decentralized platform, aggregates all sorts of stablecoins and allows for on-site farming of yield from them. In addition, Curve has its own algorithmic stablecoin, crvUSD, in development.

Curve DAO Token (CRV) Soars 14% on Back of SEC v. Binance USD (BUSD) Lawsuit

crvUSD is expected to hit the market shortly, as the code and white paper for the stablecoin were published at the end of November last year. It is known that Curve's "dollar" will be powered by the innovative Lending-Liquidating AMM algorithm, which will constantly liquidate and sell collateral to manage risk.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.