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, h...
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.
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Three Reasons Behind The CFX Rally
Recent Collaborations
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.
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
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)?
Although the CFX market has experienced a minor setback in the past few days, the coin still appears to be on an upward trajectory.
[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