While bitcoin has recovered well this week, other coins like Conflux are doing better. According to data from CoinMarketCap. This makes it the most performing coin among the top 100 tokens by market cap.
The development of Conflux has been remarkable given the ongoing crisis ravaging the banking sector. On-chain data shows that CFX reached an annual high of $0.43 on March 18, after which the market fell slightly over the past 24 hours.
Conflux (CFX) Price Growth Due to Recent Partnership
Conflux’s rapid growth has been attributed to its large partnerships and relationships with well-known enterprises in China. It is the first blockchain in China to comply with regulations and uses Tree-Graph consensus to improve throughput and scalability. This has generated interest from several Chinese enterprises, and it is believed that the blockchain is likely to receive regulatory approval in the region.
Earlier in January Conflux confirmed that it has incorporated Little Red Book, the Chinese equivalent of the Instagram video-sharing app, into its ecosystem. According to the news, the collaboration will allow more than 180 million Little Red Book users to display Conflux-created NFTs on their page.
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Conflux also recently agreed with China Telecom to supply Web3-enabled mobile devices with blockchain-based SIM cards. This is expected to provide significant benefits and lead to adoption in the Chinese market.
In addition, the news that Hong Kong plans to formally legalize cryptocurrency trading also contributed to the bullish sentiment. Some analysts believe that this is China’s first step towards opening up its cryptocurrency market. It should be noted that China banned cryptocurrency-related activities in 2021 and had the largest number of miners on the Bitcoin network at that time. The move towards the legalization of cryptocurrencies may be on the cards. Therefore, investors are looking to hold China-linked tokens, and Conflux is the biggest beneficiary of this trend.
Global Banking Crisis Leads to Wider Cryptocurrency Adoption
Apart from these developments, the global banking crisis is a major factor in the collapse of Silicon Valley Bank and Signature Bank in recent weeks. These incidents have brought the banking system under scrutiny and investors are turning their attention to crypto assets. The data on the network is also supporting this trend as the number of new accounts on Conflux hit an all-time high of 20,000. This means that investors are optimistic and confident about the network.
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At the time of writing, Conflux (CFX) is trading at $0.39, with the coin down 9% from its yearly high. Current market sentiment is bullish and CFX could take another move towards the $0.5 resistance levels in the new week. However, if the market correction continues, the next support level for the token will be $0.3.
Featured image from Conflux, chart from TradingView
Credit : www.newsbtc.com
