DeFi
DeFi: Convex Finance (CVX) soars 100%
7:18 a.m. ▪ 4 min reading ▪ by Mikaia A.
The rapid development of the DeFi (decentralized finance) sector is leading to unprecedented growth in the cryptocurrency sector. Convex Finance (CVX), one of the hottest platforms, recently saw its price double in just 24 hours, setting records for trading volume. This meteoric rise reflects the growing interest in DeFi platforms and confirms CVX’s position as a major player in the market.
The meteoric rise of convex finance
Recently, the attacks against Curve Finance in July 2023 casts a shadow over the entire DeFi sector. However, Convex Finance seems to have turned this dark page.
Indeed, CVX crypto price soared over 100% in just 24 hours, leading to record trading volumes on major exchanges such as Binance and Bybit, reports Wu Blockchain.
On June 16, Binance recorded CVX/USDT spot trading volume of approximately $32 millionwhile Bybit reported $120 million worth of CVX USDT perpetual contracts.
This spectacular increase followed positive statements from investor CrediBULL Cryptowho described on X how he capitalized on Convex Finance’s high incentives to quickly recoup his initial investment.
Indeed, despite an all-time high of $60 followed by a drop to $2, CrediBULL Crypto tripled its CVX holdings taking advantage of low prices. Currently, with an annual rate of return of 25%, he hopes to recoup his investment in less than a year while banking on new heights.
This renewed investor confidence, as well as traders’ optimism, indicates renewed interest in Convex Finance and more broadly in DeFi yield amplifiers, this famous alternative to Traditional Finance (TradFi).
Crypto analysts bet big on Convex Finance and DeFi platforms
Crypto analysts were quick to grasp the opportunity presented by the volatility of CVX. With attractive rates of return, they have increased transactions, thus fueling an upward dynamic on the markets.
Convex Finance, with its reward model based on “bribes” distributed every two weeks, attracts more and more investors. These incentives, representing around 30% of APR, are particularly attractive in a context where traditional yields are low.
This reward model encourages holders to increase their stakes, hoping to achieve even higher returns if prices continue to rise.
The CVX price surge also highlights the growing interest in DeFi platforms. These offer decentralized alternatives to traditional financial servicesallowing users to generate high returns without intermediaries.
At the same time, the success of Convex Finance, although very young, may well inspire other crypto projects to adopt similar models, thereby increasing competition and innovation in the sector.
However, this rapid growth is not without risks: Price fluctuations and platform security remain major concerns.
Nonetheless, for those who know how to navigate the turbulent waters of cryptocurrencies, the rewards can be considerably lucrative.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.