Depending on how long you’ve been trading cryptocurrencies or how knowledgeable you are, you can tell that the best way to make it big in cryptos is investing early. Digital currencies often enter the market at very low prices and grow with time. Investing early gives you an edge over people who will invest later.
Investing in a cryptocurrency early enough generally means you will buy the coin at a cheap price. When the coin performs well and becomes a hot cake, you can sell and make a lot of profit. This doesn’t happen with every coin, however, which is why it is important to research a coin properly before buying. In this post, we will discuss the chances of Curve (CRV) making you rich in ten years.
Currently, Curve is one of the trendy coins in DeFi. Also called Curve Finance, the Curve protocol is making waves because of how it helps traders/investors who focus on stablecoins. The native currency of the network, which is also called Curve and trades under the ticker symbol CRV is also becoming popular by the day. But can Curve (CRV) make you rich in ten years?
There are specific ways to determine whether a digital asset can become more valuable in the future, and we will follow this proven pattern to answer the vital question above. However, you should know that we don’t offer investment advice. It is very important, therefore, that you read every aspect of this post carefully. In the end, you should be able to decide whether a long-term investment in Curve (CRV) is worth it.
Content:
- What Is Curve?
- How Does Curve Work?
- How About The Curve Token?
- Is Curve A Good Investment?
- Will Curve Make You Rich In 10 Years?
- Price History Of Curve
- Recent Performance and Current Standing of Curve
- Curve Price Predictions
- Where Will Curve Be In the Next 10 Years?
- Pros and Cons of Investing In Curve
- Should You Play The Long-Term Game With Curve?
- Final Words
What Is Curve?
Curve is a decentralized exchange (DEX) and automated market maker (AMM) for stablecoins. Also called Curve Finance, the platform was created to provide Decentralized Finance (DeFi) services for stablecoins traders/investors. It was first launched as a protocol but has since transformed into an entire ecosystem, complete with a DAO.
Curve is not like other cryptocurrency platforms. For a start, it was designed for the stablecoins niche. From its unique technology to embedded features, the network is designed to serve an interest group in the DeFi sector but is also doing enough to attract others to this exclusive niche. It provides liquidity pools for stablecoins and also facilitates seamless transactions between these pegged currencies and other digital assets.
Curve Finance is very similar to one of the most popular automated market making platforms, Uniswap. Actually, it was designed to be the “Uniswap of stablecoins” and was previously named Stableswap by the founder. Even before the launch of the Curve token (CRV), the protocol had conquered its target market, thanks to its high yield and low slippage.
As hinted in the previous paragraph, Curve has a native currency, which is also called Curve. It is an ERC-20 token built on Ethereum, and trades under the ticker symbol CRV. It powers the Curve network and also serves as the utility token. Curve CRV is the digital asset you will need to buy to invest in the network. Its performance in the future will ultimately determine whether you will make a profit or a loss from the investment. Though there are other ways to earn from the network, trading the token is the commonest way to make money from it.
Read More: What Is Curve? Should You Invest In CRV And Where To Buy It?
How Does Curve Work?
Like other automated market makers, Curve allows for automatic trading of digital assets by using liquidity pools instead of buyer to seller transactions. A liquidity pool is just like a shared pot or tokens provided by participants of the network. Such participants are incentivized for contributing to the liquidity pool.
As we have maintained from the beginning of the article, Curve is focused on stablecoins, so its liquidity pools include stablecoins like USDT, USDC, DAI, BUSD, and some others. The rest of the pools are for wrapped Bitcoins and a few other ERC tokens on Ethereum. It supports about 17 pools in total.
Curve facilitates the highest level of transactions in stablecoins. In addition to providing liquidity pools, it guarantees lower fees and minimal slippage in stablecoin transactions. While users of Curve can trade stablecoins directly from their wallets, they can also trade Curve tokens on any other platform. As stated already, the Curve token (CRV) is the digital asset we are focusing on.
How About The Curve Token?
It is time to talk about the Curve token (CRV). As stated earlier, it is an ERC-20 token, which means it is built on Ethereum. In addition to being the primary investment vehicle in the network, it is also the governance token, which means it bestows on holders the powers to vote on how the protocol and its entire ecosystem is run.
The value of the Curve token you hold will determine the voting power you will get key decisions concerning the protocol are made. Users are also required to lock their CRV tokens to get voting rights. How long you lock your tokens also influences the voting power you will get. The maximum duration for locking CRV is four years.
Curve CRV was mined through APY mining and stakedrop. There was no Initial Coin Offering, so the average price of the token in the first month on Binance is used as the ICO price. That price is $3.5. The price of the token skyrocketed in the first few weeks before crashing in a dramatic manner. More of that later.
Is Curve A Good Investment?
We’ve already stressed that investing in Curve primarily means buying the token at a point and selling at another point when you feel the market is favourable. Though the nature of the network and its adoption will influence the value of the token in the future, it is safer to consider the history of the token and its prospects.
So, is Curve a good investment? As it stands, no one can vouch that Curve is a good investment. The network is great, but there are issues with the token that you or anyone else should never overlook. It was clearly overpriced in the early days and when the price came crashing, many people lost money.
While some level of stability has returned to its market, Curve is still considered a volatile and risky investment. A lot can change in the coming months or years, but Curve is not looking like one of the best investment vehicles in the cryptocurrency space. This is quite a paradox when you consider the fact that the network is focused on stablecoins.
Will Curve Make You Rich In 10 Years?
Curve, like other cryptocurrencies, is a speculative investment. That means its value mostly depend on demand and supply. Such assets can gain or lose value quickly. Ten years is a long time for the coin to grow significantly and make investors rich. Ten years is also enough time for the coin to become a lot less valuable than it is at the moment.
Investing in Curve with the hope of becoming rich in ten years is a lofty ambition, though possible. The network is focused on a somewhat small niche, and the token has shown signs of extreme volatility in the past. Most experienced investors will steer clear of the coin for the time being. However, day-trading curve is not a very bad idea at the moment.
One of the best ways to determine whether a digital currency will perform well in the future is to consider its past and presence. We will discuss the price history of Curve and its current standing before looking at the predictions from authority websites.
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Price History Of Curve
According to data from Coin Market Cap, Curve reached its all-time high of $60.50 on August 14, 2020. That was within the period the coin debuted on major exchanges. The success of the protocol led to the overvaluation of the coin. It was just a matter of hours before the price came crashing down. By the last day of August, it was trading for $3.11.
Curve started September 2020 at $4.28 per token. The bearish trend set in again, and the coin was down to $1.08 on the 23rd. By the last day of the month, it has reached $0.948987. October 2020 saw Curve continue in its downward trend. By 10th October, the coin was trading at $0.628531. It reached an all-time low of $0.3316 on 25th October 2020. By 31st October, it traded for $0.394421.
November was a pretty unimpressive month for Curve. It started the month at $0.416531, reached $0.879763 on the 18th and eventually finished the month at $0.656672. December was similar to November. The coin started the month at $0.672661, reached $0.831755 on the 4th and depreciated over the second, third, and fourth weeks. It ended the month (and the year) at $0.581499.
2021 has been a good year for Curve. By January 2nd, the coin was trading for $0.623004 but by 16th, it reached $1.16. By 24th, it climbed to $2.14. It eventually finished the month at $2.05 and February started on a good note. By February 3rd, Curve traded for $3.05. On the 6th, it traded for $3.29, and by the 12th, it traded for $3.53. It started dropping towards the end of the month, reaching $1.94 on the last day of the month.
March 2021 was a growth period for Curve. It started the month at $1.76 and rose to $2.55 on the third day. It was able to reach $3.01 on 29th March. April was a better month as the coin was able to reach $4.01 on the 16th day. It dropped afterwards but was able to finish the month at $3.02. The first week of May was good too, and Curve traded for $3.65 on 8th May. By 24th May, however, it had dropped to $1.34.
By June 1st, 2021, Curve traded for $1.96 per token. By the 6th day, it had climbed to $2.52, only to drop down to $1.51 by 24th. July was not any better as the coin started at $1.82, reached $1.97 on the 7th, and finished the month at $1.62. Curve traded for $1.72 on the 1st of August and reached $2.05 on the 12th. It had an average performance but was able to finish the month at $2.11.
Recent Performance And Current Standing Of Curve
Throughout the first week of September, Curve traded for around $2. By the 8th, it dropped to $1.99. From that point, it started gaining and reached $3.03 on the 16th. It dropped to about $2.29 on the last day of September. October was also good for the coin: it started the month at about $2.53, and by 24th, it reached $3.68. By October 30th, the coin traded for $4.65. The first few days of November has seen the coin maintain its price within the $4 region. Curve value rose to $5.88 in November but the market drop in the following months didn't spare it.
At the time of writing this piece, Curve was trading for $3.23 per token, with a 24-hour trading volume of $268,157,081. In the past 24 hours, it recorded a low price of $3 and a high price of $3.23. Curve’s market capitalization is $1,447,488,283, making it the #66 ranked cryptocurrency in the world. Currently, there are 448,663,005.36 CRV in circulation, which is just about 14% of the maximum supply of $3,303,030,299 CRV.
Curve Price Predictions
Some top prediction sites have predicted what Curve can be worth in the future, and we will consider a few of the relevant ones.
Wallet Investor is very positive about the future of Curve DAO token. It predicts that the coin will be worth as much as $8.02 in the next one year. In five years’ time (2027), it predicts that Curve will be worth about $36.24.
Digital Coin Price is also positive about the future of Curve. It predicts that the coin can be worth $4.64 before the end of this year, 2022. By 2023, it predicts that the coin will be worth about $5.14. In the next five years (2027), it predicts that Curve can be worth $10.01.
Trading Beasts is not as positive as the two sites above when it comes to the future of Curve CRV. According to its prediction, the average price of the coin in December 2022 will be $3.79. By December 2023, it predicts that the average price will increase to $4.61, and by the same period in 2025, the average price will increase to $6.13.
Don't Miss: Curve Price Predictions
Where Will Curve Be In the Next 10 Years?
The DeFi scene is going to grow bigger in the next ten years, and the stablecoin niche will also expand. Invariably, Curve Finance will grow bigger by then. However, no one can accurately predict what the price of the token will be.
There are good reasons to believe that the price of Curve will improve in the future, but the nature of the network and the niche it belongs to make predicting the future of the coin hard. Again, Curve has shown signs of extreme volatility, which means it can also disappoint in the future.
Pros and Cons Of Investing In Curve
One of the easiest ways to determine whether to invest in Curve or ignore it is to look at the merits and demerits of investing in it. Here are the key ones:
Pros
✅ Curve is part of the fast-growing DeFi sector.
✅ Curve has captured the minds of stablecoins traders/investors because of the exceptional service it offers.
✅ Curve has a very powerful ecosystem with a DAO to take care of how it is run.
✅ Curve has little or no competition at the moment, though there are related services in other niches.
✅ Curve offers savings accounts that pay high interest.
✅ Curve offers staking opportunities for users.
✅ Curve is relatively cheap.
Cons
❌ Curve has shown signs of extreme volatility.
❌ Curve was overpriced in the past.
❌ Curve operates within a small niche, though its token can be traded on other platforms.
❌ Only 14% of Curve CRV tokens are in circulation, which means more coins in the system may drive the value of the token further down.
❌ Regulation of DeFi may affect Curve negatively.
Should You Play The Long-Term Game With Curve?
From all indications, playing the long-term game with Curve is a very risky undertaking. Though it is currently performing well, there are many reasons to avoid Curve (CRV) as an investment option. There is no guarantee that it will become more valuable in the future.
It is possible that Curve can become more valuable in the future, but it is currently not looking like a top long-term investment option. Day-trading may be the best strategy for the token until it shows signs of stability and potentials to reach new heights.
Final Words
Investing in cryptocurrencies can be tricky, especially when you are considering long-term investing. We have covered some of the most important things you need to know about Curve and its suitability as a long-term investment option. You can decide to invest in the token, but we strongly doubt its suitability as a long-term asset. Things can change in the future.