Conflux (CFX), the token that powers Conflux’s high-throughput, Tree-Graph-powered layer-1 blockchain, has been on a rollercoaster ride in a whirlwind of price swings. Last week it tumbled to a low of $0.20 per token, leaving observers on edge. However, it managed to climb back up during the week, reaching as high as $0.330.
However, the token has been on a downward trajectory over the past four days, resulting in a price drop of more than 19%. CoinMarketCap Data shows that the CFX is down about 2% in the last 24 hours. Despite this recent dip, optimistic forecasts for the price going forward remain.
While it may have had some setbacks, Conflux has remained one of the best performing companies over the past seven days, posting impressive gains of over 30% in this period. Maintaining a position above the key $0.295 support level, which aligns with last week’s high, provides some stability amid the turbulence.
What is driving the growth of Conflux (CFX)?
Conflux (CFX) has made waves with its remarkable annual gains of around 1,700%. Naturally, observers are curious about the role of whales in this surge, speculating whether they are driving the buying and pumping of the token. While it’s a possibility, we can’t say for sure.
Conflux’s impressive performance coincides with the optimism surrounding China’s renewed interest in cryptocurrencies. With the country appearing to be shifting its attitude towards the crypto industry, there is hope that Conflux will reap the rewards. The project has actively fostered partnerships with several regional companies and positioned itself as a potential frontrunner in meeting regulatory requirements.
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Among its notable partnerships, Conflux has joined forces with Little Red Book, often referred to as the Chinese equivalent of Instagram. This partnership presents exciting opportunities as Little Red Book’s massive user base of 180 million individuals can now display Conflux-based non-fungible tokens (NFTs) on their profiles. In addition, Conflux has entered into a partnership with China Telecom, further strengthening its presence and potential in the Chinese market.
Conflux and China Telecom introduce Blockchain SIM card
Conflux Network and China Telecom have unveiled the world’s first Blockchain SIM (BSIM) card, an identification card for mobile users based on blockchain technology. Similar to traditional SIM cards, the BSIM card is compatible with Android and iOS systems and offers significantly more storage and processing power than traditional SIM cards.
The BSIM card goes beyond basic communication functions by generating and storing users’ public and private keys within the card itself. Using a “private key never leaves the card” digital signature approach improves security and reduces the risk of malware or virus attacks on mobile terminals. In addition, the card offers encrypted storage and key recovery functions and integrates traditional U-shield functions, making it a highly secure Web3 access solution for user terminals.
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This collaboration between Conflux Network and China Telecom demonstrates their innovation in merging blockchain technology with mobile user identification, introducing a robust and efficient solution to users in the ever-evolving digital landscape.
What next for Conflux (CFX)?
As long as well-known cryptocurrencies such as Bitcoin and Ethereum continue to thrive in the face of the concerns of the global banking system, Conflux (CFX) could also benefit from these favorable market conditions. In addition, the prospects of significant financial easing from central banks, including the Federal Reserve, could further bolster CFX’s performance.
Hong Kong’s recent decision to legalize certain cryptocurrency trading is a remarkable development to watch. This move is seen by many as a testing ground for potential mainland crypto legalization. Given the growing popularity and adoption of Conflux in China, CFX is a major beneficiary of this trend. The recent partnership with a Chinese SIM card company further reinforces the optimism within the crypto community.
These factors collectively contribute to the positive outlook for CFX as it benefits from established cryptocurrencies, anticipates favorable monetary policy and benefits from potential crypto legalization in China. At the time of writing, Conflux was trading at $0.2962.
– Featured image from iStock.com, charts from CoinMarketCap and TradingView.com
