The growth of the stablecoin sector within cryptocurrencies has been one of the most shocking developments of 2021. In particular, stablecoins became an integral part of the expanding decentralized finance (DeFi) ecosystem, as their full value eclipsed $ 162 billion, according to CoinMarketCap.
One project that has seen a rise in token price thanks to its focus on stablecoins and the Curve Finance (CRV) ecosystem is Convex Finance (CVX), a protocol that aims to help users drive betting. of CRV to maximize yields.
Data of Cointelegraph Markets Pro Y TradingView shows that since hitting a low of $ 18.79 on December 4, the CVX price rose 215% to set a new record at $ 60.22 on December 27. During the same period, its 24-hour trading volume soared from an average of $ 20 million to more than $ 163 million.
Three reasons for the new all-time high for CLC include the launch of new assets on the protocol, the listing of the CLC token on several major exchanges, and the continued growth in total value locked (TVL) on the Convex protocol.
The launch of new assets and LP pools
One of the reasons for the strengthening of Convex Finance in December has been the addition of new assets, including new opportunities to provide liquidity in support of the Convex platform. More recently, Convex announced that it would expand beyond its focus on Curve Finance by adding support for the promising Frax Finance stablecoin ecosystem.
The @fraxfinance Soft convex launch has begun.https://t.co/oZ9WKZxNXR
Deposit + convert $ FXS to $ cvxFXS
- Convex Finance (@ConvexFinance) December 22, 2021
In addition to adding a new stablecoin protocol to its ecosystem, Convex also launched an Ether / CVX group on the Curve v2 protocol, as well as a new CRV / Ether group on Convex that offers a projected return of 178.49%.
New exchange listings
A second factor that helped drive the price and trading volume of CVX was the listing of the token on several major exchanges, including Binance on December 22 and Huobi Global on December 23.
CVX now on Binance! https://t.co/EBaescRNf1
- Convex Finance (@ConvexFinance) December 23, 2021
After these two exchange listings, the CVX price soared from $ 34.83 to $ 45.76, a 42% gain in less than 36 hours.
CVX also received a boost to its value on November 26 when the token was listed on the OKEx cryptocurrency exchange.
Related: 3 reasons why the Curve price (CRV) is trending towards a new 1-year high
Increase in total locked value
A third element that points to the growing strength of Convex Finance is the total value set in the protocol, which reached a new record of $ 19.49 billion on December 29, according to data from Defi Llama.
The steady increase in locked assets on the protocol has elevated Convex Finance to the third ranked protocol in terms of TVL across all DeFi behind Aave, which reports total liquidity of $ 26.56 billion across all supported networks, and Curve Finance , which has a current TVL of $ 23.14 billion.
As the Convex ecosystem expands and continues to add support for projects like Frax and potentially TerrraUSD (UST) in the future, the protocol's TVL is likely to continue to rise and could exceed that of Curve Finance as it incorporates other currency protocols. stable.
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