Convex Finance’s CVX token has enjoyed something of an upturn recently. The news that the platform was to support the FXN crypto saw investors take an interest in the token, which rose by 35% in a little over two weeks.
However, the crypto has been on a downturn since April, with market events damaging its price.
Convex Finance did not immediately respond to a request for comment.
But what is Convex Finance (CVX)? How does Convex Finance work? Let’s see what we can find out, and also take a look at some of the Convex Finance Price Predictions that were being made as of September 28 2023.
Let’s examine some of the Convex Finance price predictions being made on September 28 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term Convex Finance price prediction that saw it fall to $2.84 by October 2 before recovering to $3.38 by October 27. The site’s technical analysis was neutral, with 15 indicators each making bullish and bearish signals.
Moving on, DigitalCoinPrice’s Convex Finance price forecast said it would trade at $10.78 in two years’ time. CaptainAltCoin said CVX would reach $5.92 then, while PricePrediction.net had it at $8.22 in 2025.
Looking at a more long-term Convex Finance price prediction, DigitalCoinPrice said the token would be worth $31.65 in 2030. CaptainAltCoin said it would stand at $14.80 then. PricePrediction.net’s CVX price prediction said it would trade at $52.20 at the start of the next decade.
Now, let’s examine the Convex Finance price history . While we should never take past performance as an indicator of future results, knowing what the token has achieved can provide us with some very useful context if we want to make or interpret a Convex Finance price prediction.
CVX came out in April 2021, when it traded at $6.19. It soon shot up and was able to avoid the worst of the Great Crypto Day Crash of May 19, at least initially, reaching $18.77 on June 2. It then collapsed, sinking to an all-time low of $1.88 on July 20 2021.
The token was able to make a recovery, though, climbing past $10 in early August. CVX continued to rise throughout the year and closed 2021 at $48.94.
2022 started well, with CVX reaching an all-time high of $62.69 on New Year’s Day. Although it dipped to below $20 in late February, it recovered to trade above $30 in early April.
When the Terra (LUNA) blockchain collapsed in May 2022, CVX fell, going below $10. Any hopes of a recovery were wiped out when the FTX (FTT) exchange declared bankruptcy in November. CVX closed the year at $3.20, an annual loss of nearly 95%.
CVX started 2023 well enough, climbing past $6 at various points in February and April. Things were already going downhill when the United States Securities and Exchange Commission (SEC) sued the Binance and Coinbase exchanges in June. In the aftermath, CVX fell to $3.13 on June 15. It was able to recover to $4.29 on July 14. This peak came as a court ruled that Ripple’s XRP was not a security when it was being sold on exchanges.
This high could not last. In August, the market fell after Elon Musk’s SpaceX sold millions of dollars worth of Bitcoin (BTC). By September 11, it was worth $2.29. Since then, there has been a recovery. On September 28 2023, it was worth about $3.10. At that time, there were 98.9 million CVX in circulation out of a total supply of 100 million. This gave the token a market cap of around $249 million, making it the 107th-largest crypto by that metric.
Since reaching its September 11 low, CVX has climbed about 35%. However, the token is still down around 1% from its June low and by more than 25% from its July high. Perhaps more worryingly, it is worth about 3% less than at the start of the year.
It is difficult to tell. While the token has been on an upward trend lately, there is no way of telling when and where it will end. Keep in mind that CVX has dropped since the start of the year.
While a lack of identified founders is not uncommon in crypto – and has not done Bitcoin any harm – there is one other problem. Convex Finance does not have a whitepaper, or technical document, explaining what it is or how it works. Investors may prefer to put their money somewhere with more transparency.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in CVX.
No one can really tell right now. While the Convex Finance crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in Convex Finance, you will have to do your own research, not only on CVX, but on other coins and tokens such as The Graph (GRT) and PENDLE. Either way, you will also need to make sure that you never invest more money than you can afford to lose.
A group of anonymous crypto enthusiasts created Convex Finance in 2021.
The CVX token supports the platform.
Users deposit CRV onto Convex Finance, which is then permanently locked as veCRV. In exchange, users receive a tokenized version called cvxCRV, which they can then stake on the platform and convert into Curve DAO admin fees. Users can also receive CRV and CVX rewards from Convex’s performance fee.
Although Convex Finance doesn’t impose withdrawal fees, there is a 16% performance fee applied to all CRV earnings generated by Curve liquidity providers on the platform. Out of this 16%, 10% is distributed as CRV to cvxCRV stakers, 5% goes to CVX stakers in the form of cvxCRV, and 1% is allocated to a harvest caller in CRV.
People can also buy, sell, and trade CVX on exchanges.
Because CRV is based on the Ethereum (ETH) blockchain, it is a token, rather than a coin. You might see references to such things as a Convex Finance coin price prediction, but these are wrong.
On September 28 2023, there were 98.9 million CVX in circulation out of a total supply of 100 million.
It could do in a little while. DigitalCoinPrice says it will get there in 2025 and PricePrediction.net says it will do so in 2026. CaptainAltCoin has CVX reaching double figures by 2030.
Convex Finance has traded above $10 before, but not since May 2022.
The CVX token helps power the Convex Finance yield-generating protocol. People can also buy, sell, and trade it on exchanges.
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Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.