- Convex Finance is one of the biggest DeFi platforms in the world.
- Its price soared to the highest level in more than a month on Wednesday.
The Convex Finance price jumped to the highest point since January 21st this year as investors rushed to buy the dip. The CVX token is trading at $23.37, which is about 43% above the lowest level this year. It has a market cap of $1.2 billion, making it the 88th biggest coin in the world.
What is Convex Finance?
Convex Finance is a large blockchain platform that enables developers to make money by staking their CRV tokens. For starters, CRV is the native token for the Curve Finance ecosystem, which is the biggest DeFi platform in the world. CRV has a total value locked of $18.3 billion.
There are two main ways that people make money with Convex Finance. First, they can provide liquidity to the network and earn a reward for that. In this, they deposit their Curve LP tokens and earn trading fees and boosted CRV and CVX tokens.
Second, you can stake your CRV yoken on top of CVX tokens and earn a reward. To do that, people just need to deposit any amount of CRV tokens into Convex and then receive cvxCRV tokens. After this, they will start earning interest.
Convex Finance is becoming incredibly popular among investors. It has a total value locked of over $15 billion and total revenue distributed to users of over $428 million.
It is unclear why the Convex Finance price has rebounded in the past 24 hours. The reason could be that investors are buying the dip after the coin crashed to an all-time low. It could also be because of the growth of its ecosystem since it has grown to become the fourth biggest DeFi platform in the world.
Convex Finance price prediction
The four-hour chart shows that the CVX price has been in a strong bearish trend in the past few weeks. It fell to an all-time low of $16 this week. Now, it has managed to rebound as investors buy the dip. As it rose, it managed to move above the key resistance level at $30.7, where it struggled to move above last month.
It has moved above the 25-day and 50-day moving averages. Therefore, there is a likelihood that the Convex Finance price will resume the bullish trend as the fear of missing out sets in.
Contributors
