The Conflux (CFX) currency, one of the leading blockchain projects in Asia, has made a strong return to the digital arena in recent weeks, after a remarkable performance that led it to achieve gains exceeding 100% in less than 24 hours. This price surge did not come from nowhere; it was driven by a series of fundamental developments that prompted many investors to reconsider the future of this currency, especially in light of its expansion strategies in the Chinese and international markets.
The CFX 3.0 update opens new horizons
The Conflux network announced the launch of the technical update Conflux 3.0, a fundamental update that will raise the network's capacity to over 15,000 transactions per second thanks to the unique Tree-Graph mechanism, making it a fierce competitor among the largest networks in terms of efficiency and speed.
The anticipated update, scheduled to be activated during August, reflects the network's desire to meet the increasing needs of users and projects that require a strong and scalable infrastructure.
A stable currency in Chinese yuan ignites the market
In a notable development, Conflux revealed a strategic partnership with AnchorX and Eastcompeace Technology to launch a stablecoin linked to the Offshore RMB. This currency aims to support cross-border transactions within the "Belt and Road" initiative, which analysts consider an indication of Conflux entering the politically and economically supported international payment system by China.
This announcement had a direct impact on the price of the currency, attracting a wave of institutional and individual demand.
📊 Strong technical indicators... and massive market movements
The daily trading volume of CFX has risen to over $1.7 billion, a record figure compared to its performance in previous months. Open liquidity in derivatives has also surpassed a new ceiling, and open interest in long positions has increased, reflecting widespread optimism among traders.
During the price surge, short positions exceeding $11 million were liquidated, contributing to pushing the currency to new levels of growth.
📉 Some challenges: centralization and low daily activity
Despite the positives, some analysts point to fundamental challenges that could affect the sustainable growth of the project. Most daily transactions on the network are still conducted through a limited number of wallets, raising concerns about decentralization. Additionally, user activity remains below the required level to justify long-term price increases.
What are the upcoming forecasts for CFX?
As the launch of the new update approaches, and with the expansion of the digital stablecoin network, the positive scenario suggests that the currency may surpass levels of $0.28 - $0.33 if the current momentum continues. However, if the market fails to maintain support around $0.18, the currency may enter a correction wave.
The increasing institutional interest, especially in the Chinese fintech sector, could represent a historic turning point for this currency, especially if it is effectively integrated into officially supported cross-border payment mechanisms.
Summary
The CFX currency is no longer just an emerging blockchain project; it has become one of the supported initiatives within a broader economic system. With the ongoing positive news and technical network updates, the coming weeks could be crucial for the future of this currency.
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