One of the most important developments in 2021 has been the growth of stablecoins within crypto. According to CoinMarketCap, the total value of stablecoins exceeded $162 billion and made them an integral part of expanding decentralized finance (DeFi).
Convex Finance (CVX) is a protocol that helps users increase CRV staking in order to maximize yields. This project has seen its token prices rise thanks to its focus primarily on stablecoins.
Cointelegraph Markets Pro and TradingView data show that CVX prices have risen 215% since Dec. 4 when they were at $18.79, and reached a record high of $60.22 on December 27. Its 24-hour trading volume jumped from $20 million on average to $163 million on average over the same time.
CVX/USDT 4-hour chart. Source: TradingView
The launch of new assets, the listing and trading of the CVX tokens on prominent exchanges, as well as the continuing growth in total value locked (TVL), are three reasons why CVX has reached a new record high.
Launch of new assets and LP pool
Convex Finance’s December strength has been due to the addition of assets and new liquidity opportunities. Convex Finance announced recently that it will be moving beyond Curve Finance and adding support for the new Frax Finance stablecoin environment.
The @fraxfinance Convex soft-launch has begun.https://t.co/oZ9WKZxNXR Deposit + convert $FXS to $cvxFXS
— Convex Finance (@ConvexFinance), December 22, 2021
Convex has added a stablecoin protocol to their ecosystem. Convex also launched an Ether/CVX pool using Curve v2 protocol, as well as a new Convex CRV/Ether pool that promises a yield of 178.49%.
Listings on new exchanges
The listing of CVX tokens on prominent exchanges such as Binance (Dec. 22) and Huobi Global (Dec. 23) was a second factor that contributed to the increase in trading volume and price of CVX.
CVX available on Binance! https://t.co/EBaescRNf1
December 23, 2021 — Convex Finance (@ConvexFinance).
CVX’s price jumped from $34.83 up to $45.76, an increase of 42% in just 36 hours.
CVX received an additional boost in its value when it was listed on OKEx on Nov. 26.
Related: Curve (CRV), price trending towards a new 1-year high
Locked increase in total value
The protocol’s total value, which reached a record $19.49B on Dec. 29, is another indicator of Convex Finance’s growing strength. According to data from Defi Lama.
Convex Finance total value Source: Defi Llama
Convex Finance has moved up to third in DeFi in terms of TVL, thanks to the steady rise in assets. This is behind Aave which reports total liquidity at $26.56 billion across all networks and Curve Finance which has a TVL of $23.14 trillion.
The Convex ecosystem is expanding and adding support for projects such as Frax and TerrraUSD(UST) in future, the protocol’s TVL will likely continue to rise. It could possibly surpass Curve Finance because it incorporates other stablecoins.
com. You should do your research before making any investment or trading decision.