Convex Finance lets CRV , an Ethereum-based token that powers the Curve Finance network, stakers and liquidity providers earn higher returns in a simple and easy way. The platform was built on the decentralised exchange platform for trading cryptocurrency assets, Curve Finance.
Unlike other platforms that charge trading fees to pay for gas, Convex Finance does not have any withdrawal fees. Instead, the platform offers CRV stakers and liquidity providers rewards in the form of CVX, the platform’s native token.
Convex Finance launched on May 17, 2021, making it a relatively new asset. The CVX token has a market capitalisation of $1.295bn on CoinMarketCap, as of the time of writing (26 January), and is ranked 210. The coin has a circulating supply of 47,500,713 CVX tokens and a maximum supply of 100 million.
The CVX coin saw a bullish trend since its launch in May. Despite hitting its all-time low of $1.8823 on 20 July 2021, the token’s price skyrocketed by 3033.93% to the all-time high of $58.99 on 1 January 2022.
Since then, the token has dropped by 53.82% to $27.24, as of the time of writing (26 January). What does the CVX forecast predict for 2022, 2025 and 2030?
What is Convex Finance?
In short, Convex Finance is a yield optimiser for the Curve Finance protocol that aims to bring the CRV boost ecosystem to everyone by simplifying the coin’s staking process and providing Convex users with special rewards in the form of its native token, CVX.
The platform is built on the decentralised exchange platform Curve Finance, also known as Curve.fi, and allows Curve.fi liquidity providers to earn boosted rewards without having to lock (stake) their CRV, Curve Finance’s native token.
Curve.fi liquidity providers will also be able to easily receive boosted CRV and liquidity mining rewards in CVX form with zero deposit and withdrawal fees, as well as no fees on extra incentive tokens such as SNX.
Meanwhile, CRV stakers will be able to earn a share of the Convex platform in CRV as well as trading fees from the Curve platform (3CRV). Stakers will also be able to receive CVX rewards. According to Convex Finance, the platform is the perfect choice for CRV stakers who want to remain liquid while staking the token.
CVX stakers can deposit their tokens on the platform and have the opportunity to withdraw them at any time, as well as receive a portion of the platform fees.
While Convex Finance has no withdrawal fees, a small performance fee, which amounts to 16%, is imposed on all CRV revenue generated by Curve liquidity providers on the Convex Finance platform. Of that 16%, 10% is paid out in CRV form to cvxCRV stakers, 5% to CVX stakers as cvxCRV and 1% to a harvest caller in CRV.
When a user deposits CRV into the platform, that CRV is locked forever as veCRV. A tokenised version of veCRV, cvxCRV, is then returned to the user. cvxCRV can then be staked into the platform and exchanged for Curve admin fees. Users will also be able to receive CRV from Convex’s performance fee and the platform’s native CVX token.
Convex Finance uses the Ethereum blockchain. Those who wish to join the platform will have to set up an Ethereum wallet to be able to stake Curve liquidity provider coins, convert CRV, and stake cvxCRV and CVX. All Convex Finance services can be navigated via its official website.
CVX price analysis: Key drivers
The CVX token performed fairly well in the first few weeks after its April 2021 release, climbing by 203.61% from its $6.1921 launch price to $18.8 on 4 June 2021. However, the bullish momentum did not last long. The coin’s value reached its all-time low on 20 July 2021, dropping by 89.98% to $1.8823.
The bearish trend continued for CVX coin’s value, despite the news that Convex Finance saw a total value locked (TVL) between $3.5bn and $4bn for over a month and was approaching the $5bn mark at the start of August.
The token started to show bullish movement by mid-August 2021. By 6 September 2021, it had reached $13.22. This followed news that the platform’s revenue surpassed $100m at the end of August and the introduction of CVX voting at the start of September.
In the following 10 days, the token’s value climbed to $14.36, following the announcement that 100m CRV had been staked.
By 23 October 2021, Convex Finance’s TVL surpassed $12bn. The CVX token jumped to $20.78 on 24 October – a 44.70% rise on its mid-September price. Value continued to climb in the following months, reaching a peak of $40.37 by 11 November 2021.
In the lead up to Convex Finance’s release of its November update, however, the CVX token price dropped by 36.16% to $25.77 on 30 November, the day when the month’s update was published.
During that time, Convex enjoyed some positive news: a listing on OKEx crypto exchange and a collaboration with decentralised finance (DeFi) portfolio management platform Zerion. But these events failed to boost its value, which continued to drop, reaching $18.97 by 4 December 2021.
Market sentiment shifted in mid-December 2021. On 21 December, Convex Finance announced that it was expanding beyond Curve Finance’s CRV and added Frax Finance’s Frax Shares (FXS) to its system. The CVX token rose from $31.94 on the day of the announcement by 84.69% to the all-time high of $58.99 on 1 January 2022.
Since then, the token’s value started to shrink, falling by 29.78% to $41.42 on 20 January amid the wider crash in cryptocurrency markets.
In more recent CVX crypto news, on 20 January, Chainlink, the decentralised blockchain oracle network built on Ethereum, added the CVX token to its price feed for CVX/USD. The token’s price continued to decline, reaching $27.24 as of the time of writing (26 January) – a 34.23% decrease since 20 January.
Technical analysis provided by CoinCodex showed that short-term sentiment on the token was bearish, with 16 indicators showing bearish signals and nine showing bullish signals. A relative strength index (RSI) reading of 38 was in the neutral position, yet close to the oversold territory. A reading of 30 or below may signal that the coin is oversold or undervalued.
Convex Finance (CVX) price prediction
Despite recent downward price action, algorithm-based forecasting service Wallet Investor gave a bullish CVX coin price prediction, calling it an “awesome long-term investment”.
Based on its analysis of the cryptocurrency’s past performance, the forecasting service predicted that CVX could trade at $101.712 in 2023 and at $391.112 in 2027.
DigitalCoinPrice supported the bullish CVX forecast, seeing the coin reach $41.37 in December 2022. The coin’s price could rise to $67.41 in December 2025, according to the site.
Although a Convex Finance price prediction for 2030 is not currently available, DigitalCoinPrice estimated that the coin could reach $92.66 in December 2028 and jump to $122.53 in the following year.
Please note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Analyst views on CVX coin
BigONE Exchange’s chair Anndy Lian explained that Convex Finance is a simple and easy to understand product.
“The bullish surge has been going on since late last year and it crosses $20bn in locked value. Right now, it has dipped because of the market but I do see that if CURVE continues to do well, Convex will too in the longer term,” he told Capital.com.
Note that analysts can be wrong. Analysts’ views should not be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Original Source: https://capital.com/convex-finance-cvx-price-prediction
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.