Conflux (CFX) prices rose for a second day in a row, as the cryptocurrency rallied amid the ongoing crisis plaguing the banking sector.
Binance reported that CFX was the best-performing cryptocurrency on Monday. CFX peaked at $0.2093, roughly 50% above the coin’s all-time low less than a week ago.
In recent weeks, the price of the CFX token has increased by nearly 700%, reaching a high of $0.3595. At the time of writing, CFX is trading at $0.2599, up 38% in the past 24 hours and 31% in the past 7 days.
Conflux rises after Hong Kong legalizes cryptocurrency trading
Conflux’s transaction volume growth is in response to the huge demand for China-related blockchains and tokens. It is the first blockchain in China to meet regulatory requirements and use tree-graph consensus technology to improve bandwidth and scalability.
Analysts said the legalization of cryptocurrency trading in Hong Kong was a key factor behind Conflux’s rise. China is expected to follow suit soon.
As the news spread, the price of CFX rose sharply. However, it is unclear whether this report of China opening up its market to cryptocurrencies is just speculation or if it has merit. This has not prevented Conflux users from achieving profits of over 1000%.
Continuing bets that the Fed will not be as hawkish as expected also led to higher CFX prices.
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Most analysts expect the central bank to approach inflation more cautiously in the coming sessions due to changing market conditions.
The U.S. economy added more than 300,000 jobs in February, according to data released Friday. While wage inflation is falling, the unemployment rate is stagnant at around 3.6%. Experts predicted that the U.S. inflation rate remained high last month.
Blockchain recently struck a deal with China Telecom to provide Web3-enabled mobile devices with blockchain-backed SIM cards, and has yielded huge benefits.
Conflux is expected to connect traditional industries and Web3 technologies. Conflux also recently entered into a strategic agreement with NFT social media site Xiaohongshu.
Banking Crisis: A Boon for Crypto?
A banking crisis could provide a favorable climate for the widespread adoption of cryptocurrencies as alternative investments and stores of wealth.
Falling confidence in traditional banking institutions, inflation fears from printing more money, and increased demand for safe-haven assets could all contribute to this.
CFX total market capitalization on the daily chart is $674 million | Chart: TradingView.com
Some investors see cryptocurrencies as safer options because of their limited supply and decentralized nature.
Meanwhile, the global cryptocurrency market capitalization recovered and returned to the $1.02 trillion milestone over the weekend after days of losses.
At the time of writing, the global cryptocurrency market is valued at $1.03 trillion, up 8.33% from the previous 24 hours.
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