While China shows signs of becoming more accepting of cryptocurrency trade, Conflux (CFX) is also quickly becoming one the crypto assets projected to explode in price in 2023.
By June 1, 2023, Hong Kong is expected to make the buying, selling, and trading of cryptocurrencies legal for all of its citizens, according to reports. The revelation has sparked a rally in Chinese currency, and the so-called “China narrative” has gained momentum over the past few days.
This year, Conflux Network (CFX) has outperformed the market’s other leading cryptocurrencies. Tuesday’s data from coin market tracker Coingecko demonstrates that the coin’s price increased by an astonishing 547% over the previous week.
Conflux: The China-Backed Blockchain Project
Conflux Network is a public, permissionless, Layer-1 blockchain protocol that aims to provide high throughput, low transaction fees, and secure and dependable transactions. It seeks to solve the scalability restrictions of conventional blockchain networks by employing a novel Tree-Graph methodology that enables parallel transaction processing.
Conflux is the only public and regulatory-compliant blockchain in China. It utilizes a technique that combines proof-of-work and proof-of-stake.
Researchers from Tsinghua University, Peking University, and Shanghai Jiao Tong University, among others, developed the Conflux Network. Dr. Andrew Yao, recipient of the Turing Award, serves as the chief scientist of Conflux.
CFX expanded its year-to-date profits after news of a deal with China Telecom sent the stock flying. From February 15, the token has increased by a substantial 500%, reaching a daily high at $0.325 on February 20.
CFX is trading at $0.3373 at the time of writing, up 56.4% in the last 24 hours. The coin’s market capitalization is $707.5 million. At the time of writing, the project was ranked number 77 out of the top 100 cryptocurrencies.
CFX Strong Fundamentals
The partnership between Conflux and China Telecom will focus on producing SIM cards with blockchain technology. The company asserted that the blockchain SIMs, or BSIM, will be the “largest blockchain hardware product ever seen globally.”
This year’s advance in the CFX price has been largely fueled by solid fundamentals. CFX’s price skyrocketed by more than 90% on January 26, two days after the company joined with the China-based social media platform Little Red Book to offer NFT services.
DOT total market cap at $8.6 billion on the daily chart | Chart: TradingView.com
Google Searches Soaring
The high-profile deals also increased searches for Conflux Network-related terms, indicating a rise in retail interest. For example, the global Google Trend score for the keyword “Conflux Network” achieved 93 and 100 from January 22 to February 28 and February 12 to February 18, respectively.
Meanwhile, in addition to Hong Kong’s crypto plans, analysts have noticed that significant liquidity infusions by the People’s Bank of China (PBoC) correlate with the spike in crypto market value.
-Featured image from The Block