Measuring the impact of Boosted Pools on Balancer’s [BAL] market trend

  • Balancer’s TVL fell after the introduction of Boosted Pools before recording a brief rise
  • The Balancer (BAL), however, has remained flat of late

More than a year ago, Balancer created its Boosted Pool to attract liquidity to the protocol by providing investors with additional incentives. How well has this balanced the protocol and its native token – BAL?

– Read it Balancer (BAL) Price Forecast 2022-2023

The Balancer increased the Pool

Balancer Boosted Pool is a feature of the decentralized finance (DeFi) protocol – Balancer. A balancing enhanced pool allows liquidity providers (LPs) to deposit two types of assets into a pool – the underlying asset and the enhancing asset. The underlying asset usually has lower volatility, while the booster asset has higher volatility. The accelerator asset is used to generate additional returns for liquidity providers.

According to a recent report by Butchers, Balancer developed enhanced pools to improve LP capital efficiency. Investors can earn from trading commissions and interest thanks to the pools. LPs receive $0.50, the Decentralized Autonomous Organization (DAO) treasury receives $0.175, and veBAL lockers receive $0.325 for every dollar of fees paid.

What effect does this action have on the locked Balancer total? (TVL)

Balancer TVL boosted?

Since the introduction of enhanced pools, the trend in TVL has been down rather than up, according to statistics from DefiLlama. The chart revealed that TVL has fallen from almost $2 billion to $1 billion since the pools’ inception. TVL was approximately $1.28 billion at the time of writing, with a slight increase seen since January.

Balancer TVL

Source: DefiLlama

The BAL movement remains at a standstill

The price of Balancer (BAL) has been relatively stable in recent weeks. In fact, a look at its price action on the daily time frame showed no discernible uptrend or downtrend. At the time of writing, the asset was down nearly 1% in value and was trading at around $6.35.

Balancing (BAL) price movement

Source: TradingView

After notable gains in January, it failed to break the resistance between $7.5 and $7.9. Moreover, during the same period, its support remained stable at around $6.19. Due to weak price movement, it fell below the neutral line of the Relative Strength Index (RSI). The RSI indicated a significant bearish trend for BAL, which is moving below 40.

– How many Worth 1,10,100 BAL today

Fewer active addresses and…

According to Santiment, there is also a decline in the number of active addresses on the network. Balancer’s 30-day active addresses have been falling for the past few weeks.

There were 2,912 active addresses at press time, down from the more than 4,000 seen in January.

BAL 30-day active address

Source: Santiment

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