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Up more than 960% in the past 30 days and 365% in the past fortnight, Conflux Network's CFX is currently one of the best-performing coins in the cryptocurrency market.
In the past 24 hours, CFX is up more than 76% and, at the time of writing, has been trading at $0.215, according to CoinGecko. The coin has been enjoying a rally since the beginning of this year and is up a whopping 1,210% YTD.
With these tremendous gains, the $605 million market cap coin has been climbing the ranks to now become the 82nd largest cryptocurrency by market cap. The coin, however, was still down nearly 83% from its all-time high in March 2021.
CFX is the native cryptocurrency of the Conflux Network, which was created by Chinese computer scientist Dr. Andrew Chi-Chih Yao in 2018. The token's main purpose is to incentivize stakers, pay transaction fees, rent storage, reward miners, and participate in governance.
The permissionless network of Conflux has an economic-driven governance mechanism that incentivizes community contributions to ensure a secure, stable, and predictable environment for commercial activities.
Conflux Network is a Layer 1 public blockchain developed to solve Ethereum's trilemma, which is the challenge of balancing decentralization, security, and scalability. It migrated to hybrid PoW/PoS consensus to provide a fast, secure, and scalable blockchain environment with zero congestion, low fees, and improved network security.
It is through its breakthrough Tree-Graph consensus algorithm that uses parallel processing of blocks and transactions that Conflux is able to offer lower confirmation times and increase TPS. On top of it, the network has a Fee Sponsorship Mechanism that allows even users with zero wallet balance to engage with blockchain by having sponsors pay another user's transaction fees to help with user onboarding.
As for interoperability, it is achieved through the cross-chain asset bridge called ShuttleFlow. This lightning-fast bridge is built on Conflux to enable seamless asset transfers between multiple protocols.
The protocol has built-in staking through which users currently receive an annualized rate of 4%. This built-in staking interest acts as a foundation for innovative DeFi apps to grow the Conflux ecosystem.
Being China's only regulatory-compliant public blockchain, it provides a unique advantage for projects expanding into Asia. In the region, Conflux has collaborated with not just global brands but also government entities on blockchain and metaverse initiatives, including the city of Shanghai, Oreo, and McDonald's China.
Partnership with Chinese Giants
The surge in the CFX token's value comes at a time when the broad cryptocurrency market is experiencing green. This relief comes after a long downward trend in 2022, during which crypto asset prices only saw red. The price rise has the total crypto market cap inching closer to hitting $1.2 trillion, not seen since August 2022.
While this increase in the CFX token's price is in tandem with Bitcoin, which has touched $25,000, Ethereum, which is now past $1,700, and other cryptocurrencies, this coin is recording a much stronger rally.
This jump in CFX price came as Binance Futures announced the launch of CFX perpetual contracts on Monday with up to 20x leverage. The largest cryptocurrency exchange Binance is home to millions of traders, which could add to CFX's gains.
However, the biggest reason CFX is getting so much attention and interest is that last week, Conflux Network announced that it would be building blockchain-based SIM cards in partnership with China Telecom, the second-largest wireless carrier in China with a valuation of $65 billion, and an estimated 390 million subscribers.
China Telecom will launch the first BSIM pilot program in Hong Kong later this year with help from Conflux Network. According to the blockchain project, Shanghai will likely be next in line for these types of pilots, as mainland China is a key location.
The BSIM card is similar in appearance to a traditional SIM card but with 10-20 times more storage space and increased computing power.
The BSIM card will be used to manage and store public and private keys, as well as carry out digital signatures. One of the main benefits of the BSIM card is that it allows for encrypted storage and key retrieval, meaning that the private key never has to exit the card. This will ensure the security of personal digital assets and reduce the risk of the user being attacked by any malicious software on the mobile phone.
This way, BSIM will allow China Telecom customers to access Web3 with increased security and speed.
BSIM cards will further allow its users to store digital assets safely and conveniently and transfer and display them in a variety of applications. For this, the BSIM card integrates Conflux's Tree-graph, dual proof-of-stake (PoS), and proof-of-work (PoW) technology, enabling the highest system performance for any blockchain worldwide.
Conflux Network and China Telecom first partnered up in 2022, and this prototype is the product of a year-long strategic engagement to build hardware products that would act as gates to the world's metaverse.
Talking about the BSIM card dramatically improving the user experience and lowering the barriers to entry for Web3 and the Metaverse world, Dr. Ming Wu, chief technology officer of Conflux Network, said, “It is key to allowing Conflux to take its ecosystem to the next level” as collaboration with such a strong partner will allow the blockchain protocol “to enter the market in the near future, both in China and globally.”
The BSIM card's research and development phase is complete, and it has now successfully connected with Conflux's main network in the test environment, meaning that it now has the ability to store and send digital assets. Conflux and China Telecom will now focus on expanding BSIM card's ecological applications, with an emphasis on games, payments, and other fields.
But this is not the end of Conflux's achievements that have propped CFX's price. Earlier this year, the blockchain protocol partnered with yet another Chinese giant.
At the time as well, CFX's value soared after “Little Red Book,” the Chinese version of Instagram, integrated the Conflux Network to allow its 200 million users to showcase non-fungible tokens (NFTs) minted on this blockchain on their profile page.
Accelerator Program + Expansion + Token Burn
In addition to collaborating with big names, Conflux Network has been working on other ways to attract talent to its blockchain. Late last year, Conflux launched a $5 million accelerator program for Web3 projects in emerging markets.
Under this program, the project is not only providing funding but also hands-on support for early-stage teams launching projects on Conflux eSpace. Conflux eSpace is an EVM-compatible smart contract execution environment that allows developers to deploy and execute dApps and smart contracts native to Ethereum within the Conflux ecosystem.
The program was dubbed eSpace Launch Pad and grants early-stage teams with up to $100,000 in funding to launch their projects on Conflux eSpace.
“Users in emerging markets can benefit greatly from the promises of Web3 and decentralization, especially those who continue to be underserved or excluded by traditional institutions,” said Fan Long, Co-Founder of Conflux.
Besides all these developments, earlier this month, Conflux's CTO Wu also proposed to burn a portion of CFX, which is storage collateral, to improve the tokenomics of the Chinese blockchain.
Currently, 2.091 billion CFX tokens are circulating in the market, out of the 5.278 billion total supply, according to CoinMarketCap. The burning offer was initiated to make the crypto asset less inflationary and more attractive investment.
Conflux Network has also been working on expanding in Hong Kong by registering related entities that will allow it to gain entry into the city to further solidify its role as a foundational infrastructure for Web3.
In regards to this, Wu was recently invited by the Hong Kong Government to speak with various government and private organizations to discuss the rise of tech innovation through Web3 and how the project can play a foundational role in these developments.
Commenting on the projects' Hong Kong expansion plans, Wu said that the open environment of Hong Kong for crypto provides more opportunities for those working in Web3 and Metaverse, especially for those from China.
“People here have more freedom to make the technique and business innovations in a compliant manner. This will also accelerate the integration of Web3 into the traditional internet business and economies to maximally extract its value,” said Wu.
Moreover, this expansion into Hong Kong will allow Conflux to “become the foundation to fulfill the Web3 vision of Hong Kong.”
The expansion follows Conflux Network being named a potential unicorn, a private startup company valued at over $1 billion, and one of the only five blockchain-related companies to make a list in the Emerging Giants in Asia Pacific joint report from KPMG and HSBC.
To learn more, visit our Investing in Conflux Network guide.
Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.