3 reasons why Convex Finance rose 215% in December to hit a new all-time high

The growth of the stablecoin sector within cryptocurrencies was one of the most shocking events of 2021. In particular, stablecoins became an integral part of the expanding decentralized financial ecosystem (DeFi) as their total value exceeded $ 162 billion, according to CoinMarketCap.

One project where the price of its token has risen thanks to its focus on stablecoins and the Curve Finance (CRV) ecosystem is Convex Finance (CVX), a protocol designed to help users increase their CRV stakes in order to increase the To maximize returns.

Data from Cointelegraph Markets Pro and TradingView show that CVX price has risen 215% from its low of $ 18.79 on December 4th to a new all-time high of $ 60.22 on December 27th. During the same period, the 24-hour trading volume rose from an average of $ 20 million to more than $ 163 million.

4-hour CVX / USDT chart. Source: TradingView
3 reasons why Convex Finance rose 215% in December to hit a new all-time high
3 reasons why Convex Finance rose 215% in December to hit a new all-time high

The three reasons for CVX’s new all-time high are the introduction of new assets in the protocol, the listing of the CVX token on several prominent exchanges, and the continued growth of the Total Value Locked (TVL) of the Convex protocol.

The introduction of new assets and LP pools

Part of the reason Convex Finance’s strength was in December was the addition of new assets, including new ways to provide liquidity in support of the Convex platform Frax Finance ecosystem.

In addition to adding a new stablecoin protocol to its ecosystem, Convex has also introduced an Ether / CVX pool on the Curve v2 protocol, as well as a new CRV / Ether pool on Convex which offers a projected return of 178.49%.

Admission of new exchanges

A second factor that helped increase the price and trading volume of CVX was the token’s listing on several well-known exchanges such as Binance on December 22nd and Huobi Global on December 23rd.

After those two listings, CVX’s price rose from $ 34.83 to $ 45.76, up 42% in less than 36 hours.

CVX also gained in value on November 26th when the token was listed on the OKEx cryptocurrency exchange.

Total locked

A third element indicating the growing strength of Convex Finance is the total value set in the minutes, which hit a new record of $ 19.49 billion on December 29, according to Defi Llama.

Total value locked in Convex Finance. Source: Defi Lama

The steady increase in assets locked on the log has put Convex Finance in third place in terms of TVL across DeFi, behind Aave, which has total liquidity of $ 26.56 billion across all supported networks, and Curve Finance, that about a current one. TVL has $ 23.14 billion.

As the Convex ecosystem expands and continues to support projects like Frax and possibly TerraUSD (UST) in the future, it is likely that the protocol’s TVL could continue to rise, potentially surpassing that of Curve Finance as it involves others. Stablecoin logs.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you must do your own research when making a decision.

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