Centrifuge Price Surges Ahead Of The CFM Token Migration

The Centrifuge token surged to its highest level since January ahead of an upcoming token migration and a sharp rise in assets within its ecosystem.

Centrifuge (CFG) jumped to a high of $0.2850 on Friday, up 180% from its lowest point this year. The surge pushed its market capitalization to over $106 million.

The rally comes ahead of the scheduled migration of the Centrifuge governance token to Ethereum (ETH) on May 20. This marks a major milestone as the network moves toward full Ethereum Virtual Machine compatibility.

The migration is expected to pave the way for the launch of an Ethereum-native Centrifuge Protocol.

The developers hope that the transition from Polkadot (DOT) to Ethereum and Base will improve its governance, broaden exchange and decentralized finance integration, and streamline liquidity. 

As part of the migration, the supply of CFG will increase from the current 560.246 million to 675 million. The additional 115 million tokens will be allocated to the Centrifuge Foundation to fund incentives targeted at decentralized finance users, strategic initiatives, and exchange liquidity. The protocol will maintain its 3% annual inflation rate.

The token also rallied as the total value locked in Centrifuge’s ecosystem rose to a record $441 million, up from less than $100,000 in March. Most of this capital is in the Janus Henderson Anemoy Treasury Fund, which invests in short-term U.S. Treasury bills.

On the daily chart, CFG climbed to $0.2735 on Friday as anticipation over the token migration intensified. The level is significant, as it coincides with the lowest swing point from October last year.

The MACD indicator has recently crossed above the zero line, and the Relative Strength Index has entered overbought territory.

Given this setup, the token is likely to continue its climb, potentially reaching resistance around $0.50 ahead of the migration. A pullback may follow the event as investors take profits in a classic “sell the news” scenario.