- The whales on Curve Finance have requested for more gauges to be added to Ethereum.
- CRV was significantly overbought at press time and might be due for a price correction.
Following a request from whale addresses on its platform, Ethereum-based decentralized finance (DeFi) platform Curve Finance has put forward a proposal to add more gauges to its liquidity pools on Ethereum.
After seeing how well v2 pools work with different tokens given enough liquidity, there was a request from whales for more gauges on Ethereum. Adding one per several weeks, we start that batch with MATIC/ETH – up for a vote now!https://t.co/LAnrvFSNJh
— Curve Finance (@CurveFinance) January 22, 2023
The gauge system on Curve Finance measures the liquidity of a particular pool or set of pools on the platform. The gauges are used to determine a given pool’s stability fee (or interest rate), with pools with lower gauges having a higher stability fee. With gauges on Curve Finance, liquidity is distributed evenly among its pools.
Read Curve Finance’s [CRV] Price Prediction 2023-24
According to Curve Finance, the request for adding more gauges to the Ethereum Network was due to the success of its V2 pools made up of different tokens with sufficient liquidity. These gauges will be added by adding one gauge per several weeks, starting with the MATIC/ETH, Curve Finance said.
Adding more gauges to the Ethereum network on the Curve Finance platform will expand the number of pools available for users, providing more options for exchanging various assets.
As of this writing, all 22 votes cast were in favor of adding more gauges.
Source: Curve Finance
CRV amongst the top gainers
According to CoinMarketCap, the Curve DAO Token [CRV] saw a 20.89% increase in value over the past week, making it one of the top five cryptocurrencies with the highest gains during this period. As of this writing, the altcoin traded at $1.08, having seen a 7% price jump in the last 24 hours.
As the overall cryptocurrency market has been showing positive sentiment since the start of the year, the number of unique addresses trading CRV tokens has increased since 1 January.
Additionally, there has been a significant rise in demand for the token as the daily number of new CRV addresses created has increased by 103%.
Source: Santiment
With increased CRV accumulation since the year started, the alt was overbought at press time. Its Relative Strength Index (RSI) was 84.60 Its Money Flow Index (MFI) was spotted at its highest position ever, 100.
At these significantly overbought highs, a price correction is common. Buyers typically find it challenging to support any further price rally at these highs, and the bears often return to the market to initiate a price drawdown.
A look at the alt’s Chaikin Money Flow (CMF) confirmed this. At press time, CRV’s CMF was spotted in a downtrend, although still above the center line.
Is your portfolio green? Check out the CRV Profit Calculator
When an asset’s CMF is trending downward while the price of the asset is increasing, it can indicate that the asset’s price is rising on weak buying pressure. It means that the asset is being bought by a smaller number of investors or that the buying pressure needs to be stronger to support the price increase.
This typically suggests that the asset is overbought and that a price correction is more than likely to occur.
Source: Trading View CRV/USD
