The Centrifuge token (CFG) experienced a dramatic surge, hitting its highest price level since January, propelled by investor anticipation of an upcoming token migration and a sharp increase in assets within its ecosystem.
On Friday, Centrifuge traded at a peak price of $0.2850, representing a substantial 180% rally from its lowest point this year. As CFG gained momentum, the project’s market capitalization climbed above $106 million.
This recent upswing is driven largely by the scheduled migration of Centrifuge’s governance token from Polkadot to the Ethereum blockchain, set for May 20. This migration marks a critical milestone in realizing full Ethereum Virtual Machine (EVM) compatibility, laying the groundwork for an Ethereum-native Centrifuge Protocol.
Developers behind the migration aim to enhance governance structures, improve integration with exchanges, broaden opportunities within decentralized finance (DeFi), and provide seamless liquidity solutions across Ethereum and Base chains.
The upcoming token migration will see an increase in the total token supply from approximately 560.25 million CFG to 675 million CFG. The newly minted 115 million tokens are to be held by the Centrifuge Foundation, earmarked specifically for incentives targeting DeFi participants, strategic community initiatives, and bolstering exchange liquidity. Centrifuge will continue maintaining a 3% annual inflation rate.
Token holders of CFG and wrapped CFG (wCFG) will have the opportunity to migrate their holdings to the Ethereum-based CFG from May 20 until November 30, 2025.
Additionally, significant growth within the Centrifuge ecosystem has contributed to investor momentum, with the platform’s total value locked (TVL) surging to a record $441 million, up from under $100,000 in March. Much of this increase is attributed to the Janus Henderson Anemoy Treasury Fund, which primarily invests in U.S. Treasury bills.
Analyzing CFG’s technical outlook, the daily price chart illustrates robust upward movement, with CFG recently reaching the critical resistance level around $0.2735, mirroring the price’s lowest swing point from October of the previous year. Indicators such as the Moving Average Convergence Divergence (MACD), now trending above the zero line, coupled with the Relative Strength Index (RSI) entering overbought territory, suggest the token may extend gains, potentially toward the $0.50 mark in the lead-up to the migration event. Analysts caution, however, that once the migration concludes, investors may initiate profit-taking, potentially causing a pullback in price—a common market behavior known as a “sell-the-news” reaction.
