Centrifuge (CFG) Token Soars to Its Highest Level Since January Ahead of Upcoming 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.

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

What Happened: Centrifuge (CFG) rose to a high of $0.2850 on Friday, increasing by 180% from its lowest point this year. The surge in price saw the market capitalization of the token pass $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 towards complete Ethereum Virtual Machine compatibility.

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

Centrifuge developers are hoping 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 next chapter for $CFG is here. Starting May 20, 2025, holders of CFG and wCFG will be able to migrate to the new CFG token, which is designed to support governance and expansion of the Centrifuge protocol. The migration window will remain open until November 30, 2025. More details..."

The token also rallied as the total value locked in Centrifuge’s ecosystem rose to a record of $441 million, compared to less than $100,000 in March.

Most of this capital is in the Janus Henderson (NYSE:JNJ) Annuities Treasury Fund, which invests in short-term U.S. Treasury bills.

Centrifuge Price Analysis: On the daily chart, CFG climbed to $0.2735 on Friday as anticipation over the token migration grew. 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 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.