CVX surges over 100%! Analyst: CRV liquidation is a major positive

This site (120btC.coM): Michael Egorov, the founder of the stablecoin exchange protocol Curve, had more than 50 million $CRV liquidated on June 13. In a short time, It also sent the price of $CRV down to $0.2. Starting on June 14, the price of $CRV rebounded slightly, rising 7.8% in 24 hours, and was temporarily trading at $0.33 at the time of writing.

Aggregator CVX soars by more than 100%

Today (17), the price of the Convex Finance token $CVX, a revenue aggregator on Curve, soared by more than 100%, attracting a lot of market attention Not only that, on June 16, the trading volume of $CVX’s CVX/USDT spot trading pair on Binance reached $32 million, setting a new single-day high in history.

CVX 24-hour price surged 101%

Curve analyst: After CRV was liquidated, CVX fundamentals are good

Facing $CVX The reason for the sudden surge can be traced. It is understood that the funds flowing into veCRV this week are 6 times this week’s inflation, which means that $CRV on the market is facing a state of massive deflation. It has nearly 400,000 fans in crypto. KOL @CredibleCrypto said: The lock-up period of veCRV is at least 4 years, but since the voting rights of these tokens will gradually decrease as they approach the expiration date, these tokens are often re-locked. Voting power translates into money, so it is common practice to constantly re-lock these tokens to maximize voting power. In fact, many of the tokens locked in veCRV are not just locked for 4 years, but permanently. What happens when the total supply is capped, the issuance model mimics Bitcoin, and there is a “sink” where tokens are circulated into and never out again? (Suggesting it will rise)

On the other hand, @JasonHitchcock, an analyst who has been involved in the Curve ecosystem for a long time, also expressed his long-term optimism for $CVX. He believes that Convex is in an excellent position at this moment.

“With Mitch’s CRV collateral being heavily liquidated into the market, from now on it’s just a matter of fundamentals for CVX. These coins play an important role in the market and have product market fit ( pmf), and has strong fundamentals. I have always believed that @ConvexFinance is one of them. As a protocol, Convex has never been in a stronger position than Curve, Frax, F(x)n, Prisma, etc. There will be more. They get most of the fees for these projects and have good incentive systems in place for them.”

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