Convex Finance’s CVX Token Surges by 100%, Can it Sustain its Momentum?
Convex Finance’s native token, CVX, has experienced a remarkable increase of over 100% within the past 24 hours, reaching a price of $3.70 at the current moment, as per information from CoinGecko. The Convex Finance protocol operates on Curve Finance (CRV) and enhances it by assisting liquidity providers in earning higher rewards.
According to data from Coinglass, the trading volume of the CVX/USDT perpetual trading pair on Bybit crypto exchange has skyrocketed by 9,100%, surpassing $120 million during the same timeframe. “Curve yield amplifier Convex CVX has surged by more than 100% in the last 24 hours,” stated Wu Blockchain on X.
Additionally, there has been a significant inflow of vote-escrowed CRV (veCRV) tokens, totaling 19.67 million CRV tokens, which is 6 times the weekly inflation rate. Curve Finance’s data reveals that these inflows consist of “direct locks” of the token, as well as locks via Convex Finance and platforms like StakeDAO and Yearn. “This marks the highest weekly inflow into CRV locking in years,” the platform highlighted.
Users have the option to acquire veCRV tokens to lock their CRV for a period ranging from one week to up to 4 years. Each CRV token locked for 4 years equals one veCRV token, with CRV rewards being dependent on the duration of the lock-up.
Based on data from Dune, Convex Finance holds the largest share of veCRV, at over 41%, followed by Yearn Finance and StakeDAO. Consequently, the significant increase in veCRV inflows has played a role in the surge of Convex Finance’s CVX token.
Jason Hitchcock, the head of ecosystem at Web3 development firm thirdweb, noted that Convex has successfully integrated with Curve, frax, f(x)n, Prisma, and other platforms. “They receive a substantial portion of all their fees and have established significant incentive markets for them. Stablecoins and pegged assets have found a home on Curve, and those markets are flourishing as anticipated.”
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