CRV Rallies 14%, But Bearish Derivatives Positioning Weighs on Momentum
Curve DAO's CRV token gained 14% in just 24 hours, but not everyone is convinced it will continue to climb. While Spot flows and on-chain activity indicate a strong buy-side outlook, derivatives traders have turned bearish.
The Open Interest-Weighted Funding Rate for CRV's perpetual market dropped sharply to -0.0078%, showing that bearish traders are paying to maintain their positions. This is reflected in the substantial $108 million worth of Open Interest, indicating significant derivatives participation during the rally.
However, Spot flows tell a different story, with approximately $1.06 million worth of CRV purchased during the past day. This aligns with the prevailing buying trend and suggests that Spot buyers are driving the rally while derivatives traders position against it.
On-chain activity strengthened the bullish outlook, with Spot Volume surging from $25.4 million on August 15th to $260.1 million at press time. Transactions also climbed from just above 11,000 to more than 24,400 during the same period, marking the highest transaction level recorded over the past 30 days.
Despite this momentum, only a small group of users participated in the latest increase in transactions, with approximately 417 Daily Active Users recorded by Artemis. This concentration could make activity more sensitive to changes among a small group of users, potentially testing the rally's durability.