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DeFi: Convex Finance (CVX) soars 100%
7h18 ▪ 4 min read ▪ by Mikaia A.
The rapid development of the DeFi (decentralized finance) sector is driving 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 in 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 on Curve Finance in July 2023 they cast a shadow on the entire DeFi sector. However, Convex Finance appears to have turned this dark page.
Indeed, CVX cryptocurrency price increased by more than 100% in just 24 hours, leading to record trading volumes on major exchanges such as Binance and Bybit, Wu Blockchain reports.
On June 16, Binance registered CVX/USDT spot trading volume of approximately $32 millionwhile Bybit reported $120 million in CVX USDT perpetual contracts.
This spectacular ascent followed positive statements from the CrediBULL Crypto investorwho described on X how he took advantage of Convex Finance’s high incentives to quickly recover his initial investment.
In fact, despite an all-time high of $60 followed by a drop to $2, CrediBULL Crypto tripled its CVX holdings taking advantage of the low prices. Currently, with an annual rate of return of 25%, he hopes to recover his investment in less than a year by betting on new highs.
This renewed confidence among investors, as well as the optimism of traders, proves it renewed interest in convex finance and more generally in the yield amplifiers of DeFi, this famous alternative to traditional finance (TradFi).
Crypto analysts are betting big on convex finance and DeFi platforms
Crypto analysts were quick to seize the opportunity opportunity presented by CVX volatility. With attractive rates of return, they have increased transactions, thus fueling bullish momentum in the markets.
Convex Finance, with its rewarding model based on “bribes” distributed every two weeks, it attracts more and more investors. These incentives, which represent approximately 30% APR, are particularly attractive in a context where traditional returns are low.
This reward model encourages holders to increase their stakes, hoping for even higher returns if prices continue to rise.
The CVX price surge also highlights the growing interest in DeFi platforms. These deliver 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, could inspire other crypto projects to adopt similar models, increasing competition and innovation in the sector.
However, This rapid growth is not without risk: Price fluctuations and platform security remain major concerns.
However, for those who know how to navigate the turbulent waters of cryptocurrencies, the rewards can be substantially lucrative.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.