Wednesday, February 19, 2025

Cryptocurrency Industry Thrives Post-U.S. Election, Bitcoin Nears $100,000

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KEY TAKEAWAYS

  • Bitcoin is nearing the $100,000 mark following Donald Trump’s U.S. election victory, boosting the cryptocurrency market.
  • CurveDAO’s revenue has surged, with weekly earnings rising from USD 268,000 to USD 581,000, driven by increased leverage demand.
  • CurveDAO plans to enhance its product offerings with fixed-income options in collaboration with Spectra Finance, aiming to expand its yield product line.
  • A proposal to increase the revenue share for scrvUSD holders was unanimously approved, potentially attracting more demand and lowering interest rates.

The cryptocurrency industry has experienced significant growth following Donald Trump’s recent U.S. election victory. Key stocks such as MicroStrategy ($MSTR) and Coinbase ($COIN) have been re-evaluated, while Bitcoin ($BTC) is approaching the $100,000 mark.

Increased demand for leverage has been observed, with the 7-day moving average of crvUSD markets nearing 25%. This surge in leverage demand has led to a rise in weekly revenues for CurveDAO, climbing from a pre-election average of USD 268,000 to USD 581,000 in the past week. The current annualized revenue distributed to CurveDAO stakeholders (veCRV) is approximately USD 31 million, excluding revenues from gauge vote incentives.

As of today, including vote incentive bounties, the DAO has earned a total of USD 554 million. High interest rates have hindered new borrowing, prompting CurveDAO to launch the Savings crvUSD product. This initiative has attracted around USD 9 million in liquidity from savings-seekers.

CurveDAO’s Strategic Moves and Future Plans

CurveDAO is planning further product integrations, such as fixed-income offerings in collaboration with Spectra Finance, which utilizes the Curve CryptoSwap market-making algorithm. These efforts aim to expand the safe and fixed yield product line.

Revenue growth is welcomed as CurveDAO prepares to increase the fraction of revenue directed to the Savings Product starting November 22, 2024. This follows a proposal on Curve’s Governance Hub, which was unanimously approved by 586 million veCRV votes. The proposal plans to raise the revenue share for scrvUSD holders from 10% to a cap of 20% and enhance the crvUSD yield-rate’s responsiveness to market needs.

The proposed changes to scrvUSD yield rates and the DAO’s revenue growth are expected to attract more demand and help lower interest rates, facilitating sustainable scaling of the LlamaLend product. More details can be found here.


Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
Neel Kapoor
Neel Kapoor
Neel Kapoor is a dedicated cryptocurrency enthusiast and blockchain expert at Coinsholder.com. With over a decade of experience, Neel offers insightful analysis and commentary on the latest trends and innovations in the crypto space. His clear and concise writing makes complex topics accessible to all readers.

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