Convex Finance’s CVX Token Skyrockets by 100%, Can it Sustain its Growth?
Convex Finance’s own token, CVX, has experienced a remarkable surge of over 100% in value within the past 24 hours, reaching $3.70 at the time of this report, according to data from CoinGecko. The Convex Finance protocol operates on Curve Finance (CRV) and enhances it by enabling liquidity providers to earn greater rewards.
The trading volume of the CVX/USDT perpetual trading pair on Bybit crypto exchange has seen an astounding increase of 9,100%, surpassing $120 million during the same time frame, as indicated by Coinglass data.
Wu Blockchain mentioned on X, “Curve yield amplifier Convex CVX has surged over 100% in the last 24 hours.” Additionally, inflows into vote-escrowed CRV (veCRV) tokens have reached 19.67 million CRV tokens, which is 6 times the weekly inflation rate.
Curve Finance revealed that the inflows signify “direct locks” of the token, as well as locks via Convex Finance and platforms like StakeDAO and Yearn. This influx is the largest seen in years, according to the platform.
Users can acquire veCRV tokens to lock their CRV for durations ranging from one week to up to four years. Each CRV token locked for four years equals one veCRV token, with the rewards dependent on the duration of the lock.
Based on data from Dune, Convex Finance holds the largest portion of veCRV at over 41%, followed by Yearn Finance and StakeDAO. Consequently, the significant increase in veCRV inflows has played a role in boosting Convex Finance’s CVX token.
Jason Hitchcock, the head of ecosystem at Web3 development firm thirdweb, noted that Convex has successfully integrated Curve, frax, f(x)n, Prisma, and other projects. He mentioned, “They receive a substantial portion of all their fees and have established significant incentive markets for them. Stablecoins and pegged assets have found a strong presence on Curve, and these markets are flourishing as anticipated.”
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