Conflux (CFX), the token that powers Conflux’s high-throughput, tree-graph-based layer-1 blockchain, has experienced a rollercoaster ride in a whirlwind of price fluctuations. Last week, it fell to a low of $0.20 per token, unsettling observers. However, throughout the week it managed to regain momentum and reach a level of $0.330.
However, over the past four days, the token has experienced a downtrend, leading to a price drop of more than 19%. CoinMarketCap data shows that CFX has dropped by roughly 2% over the last 24 hours. Despite this recent setback, bullish forecasts for future prices continue to persist.
Although there have been some setbacks, Conflux has remained one of the top performers in the last seven days, impressively rising by over 30% in that period. Maintaining a position above the important support level of $0.295, which corresponds to last week’s high, provides some stability amid the turbulence.
What Drives the Growth of Conflux (CFX)?
Conflux (CFX) has attracted attention with its remarkable gains of around 1,700% on a yearly comparison. Observers are naturally curious about the role of whales in driving the token’s growth and speculate on whether they are driving the purchase and promotion of the token. Although it is a possibility, we cannot say for sure.
Conflux’s impressive performance aligns with the optimism surrounding China’s renewed interest in cryptocurrencies. As the country appears to be changing its stance towards the crypto industry, there is hope that Conflux will benefit as a result. The project has actively cultivated partnerships with various regional companies and positioned itself as a potential leader in meeting regulatory requirements.
Notable among its partnerships is its collaboration with Little Red Book, often referred to as China’s equivalent of Instagram. This collaboration opens up exciting possibilities as Little Red Book’s vast user base of 180 million people can now feature Conflux-based non-fungible tokens (NFTs) on their profiles. Additionally, Conflux has partnered with China Telecom to further strengthen its presence and potential in the Chinese market.
Conflux and China Telecom Introduce Blockchain SIM Card
Conflux Network and China Telecom have introduced the world’s first blockchain SIM (BSIM) card, a mobile user identification card based on blockchain technology. The BSIM card resembles traditional SIM cards, is compatible with Android and iOS systems, and offers significantly more storage and computing power than traditional SIM cards.
Going beyond the standard communication functions, the BSIM card generates and stores users’ public and private keys on the card itself. By utilizing a “private key never leaves the card” approach for digital signatures, security is increased, and the risk of malware or virus attacks on mobile devices is reduced. Additionally, the card offers encrypted storage and key recovery functions and integrates traditional U-Shield functions, making it a highly secure access solution for Web3 user terminals.
What’s Next for Conflux (CFX)?
As long as well-known cryptocurrencies like Bitcoin and Ethereum continue to thrive amid global banking system concerns, Conflux (CFX) could continue to flourish. Furthermore, prospects for a significant loosening of monetary policy by central banks, including the Federal Reserve, could further strengthen CFX’s performance.
Hong Kong’s recent decision to legalize trading in certain cryptocurrencies is a noteworthy development to watch. This move is viewed by many as a testing ground for possible crypto legalization on the mainland. Given Conflux’s growing popularity and acceptance in China, CFX is likely to be the main beneficiary of this trend. The recent collaboration with a Chinese SIM card company further reinforces optimism within the crypto community.
These factors contribute to the positive outlook for CFX as it remains at the forefront of established cryptocurrencies, expects favorable monetary policy, and benefits from the potential legalization of cryptocurrencies in China. At the time of this writing, Conflux was trading at $0.2962.
-Selected image from iStock.com, charts from CoinMarketCap and TradingView.com
