Conflux's CFX Rallies on China Buzz, But Analysts Believe Fundamentals Still Lag
Main Idea
Conflux's CFX token surged by 14% amid speculation about China's warming stance on digital assets, but on-chain data shows weak fundamentals and stagnant transaction activity.
Key Points
1. Conflux's CFX token gained 14% over the weekend, outperforming the CoinDesk 20 index's 4% rise.
2. Despite the price surge, on-chain activity for Conflux remains weak, with transaction levels below 2022 averages.
3. Nearly 80% of Conflux's total gas is spent by a single entity, contrasting with Ethereum where the largest spender accounts for less than 10%.
4. Conflux has positioned itself as China's regulatory-compliant blockchain, with plans for an offshore-yuan stablecoin, but its on-chain metrics do not reflect market optimism.
5. Analysts question whether Conflux is the best proxy for China's crypto narrative, given its lack of fundamental growth.
Description
Conflux's CFX emerged as the winner during weekend trading, gaining around 14%, according to CoinDesk market data , and surpassing the broader CoinDesk 20 index, which rose by 4%. However, behind the scenes, there's something missing: an uptick in on-chain activity. Conflux has positioned itself as being China's Ethereum , with a regulatory-compliant digital ledger, that doesn't have a token, available within mainland China. Analysts speaking to CoinDesk in the past have called it a " one countr...
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