Conflux is a Layer 1 public blockchain developed by renowned Chinese computer scientist Dr Andrew Chi-Chih Yao in 2018. This network was founded on the Tree-Graph consensus to solve Ethereum’s scalability & decentralization issues.
Conflux, as with most blockchain networks, has its own native cryptocurrency known as $CFX.
Since the turn of this year, CFX has witnessed significant growth in the market, rallying over 1,600%, making it one of the best-performing coins on the market today.
Amidst the ongoing crises plaguing the banking industry, Conflux is one of the numerous coins to have grown by leaps and bounds in the first quarter of 2023. Below are a few factors or reasons that may have contributed to this upswing and the $CFX pump, and whether they could take $CFX to new highs this year.
Three Reasons Behind The CFX Rally
One major reason for the rise of CFX is that Conflux has emerged as a notable decentralized blockchain in China that meets regulatory requirements, making it the most likely blockchain in the region to obtain regulatory approval.
Moreover, the network provides scalable, secure, and quick solutions via its unique ledger system. As such, Conflux continues to draw interest from different Chinese companies and businesses.
In the past few months, Conflux has struck significant partnership deals with prominent companies and enterprises in China.
One of these collaborations includes the integration of the Conflux network on ‘Little Red Book’ (小红书) – a Chinese Instagram-like video-sharing app. This partnership would allow Little Red Book’s over 200 million users to display non-fungible tokens (NFT) minted on the Conflux blockchain on their profile.
Thanks to this partnership, CFX’s price, which was at a low of $0.022 on January 1, rapidly climbed to $0.051 on January 26, accounting for a 132% increase in value within this period.
Furthermore, in February, Conflux agreed to a collaboration deal with China Telecom – the second-biggest wireless carrier in China, with approximately 390 million subscribers.
This partnership would enable the layer-1 network to build blockchain-based SIM cards (BSIM), which will help users to transfer, store, and display digital assets across various applications more conveniently.
These collaborative efforts—and success—prompted increased popularity and adoption of the Conflux blockchain, resulting in the recent market pump in CFX.
News from Hong Kong
Another reason for the CFX rally could be news of Hong Kong’s intentions to officially approve crypto trading.
According to several crypto analysts, this may be China’s first step towards ‘reopening’ its cryptocurrency market. It is worth noting that China prohibited most crypto-related activities in 2021 – at a time when the region boasted the highest number of miners on the Bitcoin network.
Cryptocurrencies might become legal – once again – in China earlier than initially anticipated. Hence, it makes sense that several investors are urging to purchase and hold Chinese-related assets, like CFX. Without any doubt, Conflux (CFX) is the biggest winner of this development, as its value continues to rise as a result.
Global Banking Crisis
In recent weeks, the global banking industry has been battling a crippling crisis, which has resulted in the failure of financial institutions, including Silvergate Bank, Silicon Valley Bank, and Signature Bank. This ongoing crisis has cranked up the pressure on the traditional banking system, possibly convincing big-time investors to turn toward crypto assets.
Indeed, the pump on CFX value is a strong testament to this trend.
But on-chain data also supports it, as the number of new accounts on the Conflux chain has surged to an all-time high of 20,000 users. This attests to the growing bullish sentiments around the network, showing investors are confident about its success.
What’s Next for Conflux (CFX)?
According to data from CoinGecko, CFX trades at $0.33, with a slight price dip in the last weeks. On-chain data also reveals that the coin reached a yearly high (so far) of $0.47 on March 20.
Although the CFX market has experienced a minor setback in the past few days, the coin still appears to be on an upward trajectory.
With blue-chip cryptocurrencies, such as Bitcoin and Ethereum, also on the rise due to the global banking crisis, there is no telling how far the CFX token will go from here. CFX achieved an all-time high of $1.70 back in March, 2021, indicating that the coin is still a long way from its highest price. However, the coin’s recent performance has been nothing short of excellent, with a distinct bullish sign to show for it.
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: ChainDebrief
This article was written by Opeyemi Sule