In this guide, we will express our opinion and that of the market on the future CRV as we discuss the price forecasts of the Curve DAO token for 2022 and beyond.
Keep in mind that you should take this and any other forecast with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a new highly volatile financial asset like Curve DAO Token.
Now, let’s get into it. Before we delve into the Curve DAO token price prediction and answer questions about whether CRV is a good investment or not, why CRV will succeed or fail, or why the price of the Curve DAO token will rise or fall, let’s quickly take a look at what CRV is and its history to date.
What is the DAO Curve token
Curve DAO Token (CRV) is an Ethereum token that powers Curve.fi, a decentralized exchange, and an automated market maker protocol. The protocol is designed to facilitate the exchange between similar ERC-20 tokens, mainly stablecoins (such as USDC and DAI) and Ethereum-based Bitcoin tokens (such as WBTC and renBTC).
How does DAO Curve work?
The Curve DAO token powers the Curve.fi financial platform, which serves as an automated market maker and exchange. AMMs allow for a different trading model where assets can be traded without authorization and in an automated manner. Instead of relying on order books, trading is conducted automatically through liquidity pools.
Liquidity providers have an incentive to create pools and deposit tokens. Each pool contains certain pairs of tokens supported within that liquidity pool. Pools contain similar assets to minimize impermanent losses and offer greater chances of return.
The foreign exchange market relies on liquidity pools, while the protocol connects users to various exchange markets to find the best commission rates. In this way, Curve.fi guarantees low slippage and allows traders to maximize their returns. Each time a network user makes a trade on the Curve network, liquidity providers are rewarded with a share of the trading fee for their participation.
What makes Curve unique?
Curve has gained considerable attention following its mandate as an AMM specifically for stablecoin trading.
The launch of the DAO and CRV token brought additional profitability, given the use of CRVs for governance, as it is awarded to users based on liquidity commitment and tenure duration.
The explosion of DeFi trading ensured Curve’s longevity, with AMM transforming huge amounts of cash and profits associated with users.
As such,
Curve caters to anyone involved in DeFi activities such as yield farming and cash mining, as well as those looking to maximize risk-free returns by holding theoretically non-volatile stablecoins.
The platform makes money by charging a modest fee that is paid to liquidity providers.
CRV Price Forecast for the next 90 days
The entire cryptocurrency world is on the verge of a real bear market. Bitcoin has tumbled 50% from its all-time high amid broader market declines influenced by furious inflation and US Fed rate hikes.
Investors are selling risky assets and moving to more stable markets. Crypto is still perceived as a very risky game and therefore sell off.
Our algo still sees some green in 2022, especially in the second half of the year. This is reflected in our forecast for 2022.
Right now, Bitcoin needs to find a local bottom before we can move in the opposite direction and reverse the trend.
Once Bitcoin settles into the new price range, altcoins will start doing the same – we’ve seen this scenario dozens of times in distant and more recent history.
Our price forecasting model is bearish for the next 90 days with a hint of a bull market straddling quarters from Q1 to Q2. We expect whales and other larger players in the market to finish filling their bags around that time, which will cause a typical and sudden crypto spike.
The fundamentals we evaluate are teams, tokenomics, use case, community, marketing efforts, liquidity and availability of exchange, hype and speculative potential, and some other proprietary factors developed in our crypto lab.
Below is a tabular overview of how the CRV will develop in the short term (for the next 90 days), according to our forecast model:
DAO Token Curve Forecast Price 2022
Our forecast model predicts a temporary shift to a bear market in early 2022 before moving to another lead in Q3 and Q4 of 2022.
CRV Price Forecast 2025 – 2030 – 2040
Our forecast model predicts that the CRV will reach new highs in 2025:
$4.25
The price of CRV in 2030 and 2040 is expected to be a couple of orders of magnitude higher than our 2025 forecast.