DeFi Focused Altcoin Project Rises 120 Percent in a Short Time: What is the Reason Behind?

When Convex Finance (CVX) increased by around 120% in a short time, all eyes turned to the reason.

Convex Finance, working in conjunction with the DeFi project Curve, surprised everyone with its upward performance. According to CoinGecko data, the price of CVX increased by 119% on June 16, from $2.08 to $4.55.

On June 16, Binance CVX/USDT spot trading volume reached approximately $32 million. In the last 24 hours, Bybit CVX USDT futures trading volume reached $120 million.

Why did CVX rise?

The rapid increase in entries to the Curve ecosystem in recent days and the accompanying explosion in veCRV volumes were among the reasons for the rise of CVX, which is directly linked to the ecosystem.

Investors' aim to get a share of transaction fees and mining rewards through Convex increased the interest in this area, and the price increased.

CVX is trading at $3.95 at the time of writing.

Convex Finance is a DeFi protocol that allows Curve liquidity providers to receive a share of transaction fees without staking liquidity on Curve.

Instead, LPs can stake with Convex and receive increased CRV and liquidity mining rewards. This provides CRV stakers with better capital efficiency and positions Convex Finance as a key player in the Curve wars.