Convex Finance’s CVX Token Climbs 100%, Can it Maintain Momentum?
Convex Finance’s native token CVX has recorded over 100% increase in the last 24 hours to a price of $3.70 at the time of writing, per data from CoinGecko.
Convex Finance protocol runs on Curve Finance (CRV) and complements it by helping its liquidity providers earn higher rewards.
According to Coinglass data, the trading volume of CVX/USDT perpetual trading pair on Bybit crypto exchange surged 9,100%, hitting more than $120 million at the same period.
“Curve yield amplifier Convex CVX has soared more than 100% in the past 24 hours,” Wu Blockchain wrote on X.
“In the past 24 hours, Bybit CVX/USDT perpetual contract trading volume reached $120 million.”
Curve yield amplifier Convex CVX has soared more than 100% in the past 24 hours. On June 16, Binance CVX/USDT spot trading volume reached nearly $32 million, setting a new record for a single day. In the past 24 hours, Bybit CVX USDT perpetual contract trading volume reached $120…
— Wu Blockchain (@WuBlockchain) June 17, 2024
Curve (CRV) Sees Highest Weekly Inflow, Contributing to CVX Surge
Further, inflows into vote-escrowed CRV (veCRV) tokens came at 19.67 million CRV tokens, which is 6x the weekly inflation rate.
According to data from the decentralized exchange Curve Finance, the inflows represent “direct locks” of the token as well as locks via Convex Finance and platforms like StakeDAO and Yearn.
“This is the highest weekly inflow into CRV locking in years,” the platform noted.
Inflows into veCRV are already 6x the inflation of this week. These include direct locks, as well as locks via @ConvexFinance, @StakeDAOHQ and @yearnfi.
This is the highest weekly inflow into CRV locking in years! pic.twitter.com/ADlDXWq5Zz
— Curve Finance (@CurveFinance) June 17, 2024
Users can get veCRV tokens to lock their CRV for one week, upto 4 years period. That said, each CRV tokens locked up for a period of 4 years, equals one veCRV token. Their CRV rewards depend on how long users lock their CRV for.
Per Dune data, Convex Finance holds the largest share of veCRV – over 41%, followed by Yearn Finance and StakeDAO. As a result, the massive rise in inflows to veCRV has contributed to Convex Finance’s CVX token surge.
According to Jason Hitchcock, head of ecosystem at Web3 development firm thirdweb, Convex has captured curve,frax, f(x)n, Prisma, and others will come.
“They get a big piece of all their fees and established significant incentive markets for them. Stablecoins and pegged assets have found a home on Curve and those markets are taking off as expected.”
With the massive overhang of $CRV collateral from Mitch liquidated into the market it’s just fundamentals from here on out for $CVX
Eventually ETH with have its cycle moment and moon, and the wealth effect from BTC and ETH holders will lead to a rotation into other coins
Which…
— Jason Hitchcock (@JasonHitchcock) June 16, 2024
