Convex Finance: Five unlocks later, CVX is headed for…
To combat limited liquidity in its pool, Convex Finance, a DeFi protocol built on Curve Finance, commenced the weekly unlocking of vote-locked CVX tokens on 30 June. The weekly unlocks are scheduled to span 16 weeks (16 unlocks) and see to the unlocking of 52.2 million CVX tokens.
Five unlocks later, and much to the surprise of many investors, the price of CVX has rallied by over 100%. So how has CVX fared since the commencement of the token unlocking program?
When the unlocking began, CVX traded at $3.6. According to data from Dune Analytics, with 50,271,612 CVX unlocked so far, the price has shot up by 104% in just 32 days. At press time, the token exchanged hands at $6.70.
In that period, the token’s market capitalization recorded an uptick from $280 million to $488 million. As a result, CVX, at the time of writing, ranked #81 on CoinMarketCap’s ranking of crypto assets with the largest market capitalization.
Interestingly, despite the significant price rally in the last 32 days, CVX’s trading activity within that period has been abysmal. After logging a high of 88.37 million on 5 July, the token’s trading volume since suffered a significant decline.
At press time, this stood at 10.42 million.
Source: Santiment
On a daily chart, CVX was spotted having recorded a 5% decline in price in the last 24 hours.
The token’s Relative Strength Index (RSI) embarked on an upward rally when the token unlocking commenced. It peaked at 64 on 20 July, after which buying pressure started to drop.
Still housed above the 50 neutral spot, the indicator was pegged at 54 during press time. Also, after touching a high of 85 on 6 July, the token’s Money Flow Index (MFI) has declined. At press time, the MFI stood at 61.
Source: TradingView
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