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Gauging 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 uptick Balancer (BAL) has, however, 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 balanced has this made the protocol and its native token – BAL?

The Balancer boosted Pool

Balancer Boosted Pool is a feature of the Decentralized Finance (DeFi) protocol – Balancer. The Balancer Boosted Pool allows liquidity providers (LPs) to deposit two types of assets in a pool – The base asset and the boost asset. The base asset typically has lower volatility while the boost asset has higher volatility. The boost asset is used to generate additional returns for liquidity providers.

According to a recent report by Messari, Balancer developed boosted pools to improve LPs’ capital efficiency. Depositors might profit from trading commissions and interest thanks to the pools. LPs receive $0.50, the Decentralised Autonomous Organization (DAO) treasury receives $0.175, and veBAL lockers receive $0.325 for every dollar in fees paid.

What effect has this action had on Balancer’s Total Value Locked? (TVL)

Balancer TVL boosted?

Since the introduction of the boosted pools, the trend in TVL has been more of a downward trend than an upward one, according to statistics from DefiLlama. The chart revealed that the TVL has fallen from almost $2 billion to $1 billion since the pools were established. The TVL was approximately $1.28 billion, at the time of writing, with a slight hike seen since January.

Source: DefiLlama

BAL’s movement remains stagnant

Balancer’s (BAL) price has been relatively flat in recent weeks. In fact, a look at its price action on the daily timeframe showed no discernible upward or downward trend. At the time of writing, the asset had dropped nearly 1% in value and was trading at around $6.35.

Source: TradingView

After remarkable gains in January, it has been unable to overcome the resistance between $7.5 and $7.9. Additionally, throughout the same period, its support has remained stable at about $6.19. Due to its poor price movement, it has fallen below the Relative Strength Index’s neutral line (RSI). The RSI indicated a significant bear trend for BAL, which has been trending below 40.

Fewer active addresses and…

According to Santiment, there has also been a decline in the number of active addresses on the network. The 30-day active addresses on Balancer have been falling over the last several weeks.

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

Source: Santiment

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