Convex Finance’s CVX Token Climbs 100% Amid Surging Trading Volume and Inflows

Convex Finance’s CVX Token Climbs 100% Amid Surging Trading Volume and Inflows

Convex Finance’s native token, CVX, has seen an impressive 100% increase in the last 24 hours, reaching a price of $3.70, according to CoinGecko data. The Convex Finance protocol, which operates on Curve Finance (CRV), enhances the rewards for liquidity providers on the platform.

Trading Volume Surge

The CVX/USDT perpetual trading pair on the Bybit crypto exchange experienced a dramatic 9,100% increase in trading volume, surpassing $120 million in the same period, as reported by Coinglass. This surge in trading activity has significantly contributed to the recent price spike.

Influences from Curve Finance

Curve Finance has also seen substantial activity, which has impacted CVX. Inflows into vote-escrowed CRV (veCRV) tokens totaled 19.67 million CRV tokens, which is six times the weekly inflation rate. This marks the highest weekly inflow into CRV locking in years, according to Curve Finance data. These inflows include direct locks of the token as well as locks via Convex Finance and other platforms like StakeDAO and Yearn Finance.

Users can lock their CRV tokens for periods ranging from one week to four years, receiving veCRV tokens in return. The rewards for CRV depend on the length of the lock-up period. Convex Finance currently holds the largest share of veCRV at over 41%, followed by Yearn Finance and StakeDAO. This significant influx into veCRV has driven the surge in CVX tokens.

Ecosystem Impact

Jason Hitchcock, head of ecosystem at Web3 development firm Thirdweb, noted that Convex Finance has captured markets for curve, frax, f(x)n, Prisma, and more. Convex Finance receives a substantial share of the fees from these markets, establishing significant incentive markets for them. Stablecoins and pegged assets have found a stable home on Curve, with these markets performing as expected.

Outlook for CVX

The recent performance of CVX reflects the broader trends in the DeFi space and the specific dynamics of Curve Finance. While the rapid increase in price and trading volume is notable, the sustainability of this momentum will depend on continued activity and engagement within the Curve and Convex ecosystems. As the DeFi landscape evolves, Convex Finance’s ability to maintain its position and attract further inflows will be crucial for the long-term performance of the CVX token.

Powered by Crypto Expert BD

Follow us on Twitter: https://x.com/CryptoExpert_BD

Join our Telegram channel: https://t.me/CryptoExpert_BD

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *