Conflux’s CFX Gains 14% Amid Market Euphoria Despite Low On-Chain Activity
Conflux's CFX token increased by 14% over the weekend, outperforming the CoinDesk 20 index, which rose by 4%. Despite this price surge, on-chain activity remains stagnant, with no significant growth in transaction volumes over the past year. Key points include:
- CFX has grown over 190% in the last 30 days.
- Conflux is viewed as "China's Ethereum," featuring a regulatory-compliant digital ledger accessible in mainland China.
- Nearly 80% of gas fees in the Conflux protocol are attributed to three accounts, indicating centralization concerns.
- Transaction activity is below average levels from 2022.
- Analysts question whether Conflux is the optimal representation of China's crypto narrative.
While there is potential market optimism due to Beijing's interest in stablecoins and Conflux's plans for an offshore-yuan stablecoin, the lack of corresponding on-chain growth raises doubts about its sustainability.