Despite bullish headlines and China ties, Conflux’s on-chain metrics remain weak even as insiders say Beijing might be warming up to some forms of digital assets.
What to know:
- Conflux surged by 14% over the weekend, outperforming the CoinDesk 20’s 4% rise.
- Despite its market success, Conflux’s on-chain activity remains stagnant, with transaction levels down from 2022 averages.
- Conflux faces centralization issues, with 80% of gas usage coming from just three accounts, contrasting with Ethereum’s more distributed network.
Conflux’s CFX emerged as the winner during weekend trading, gaining around 14%, according to CoinDesk market data, and surpassing the broader CoinDesk 20 index, which rose by 4%.
However, behind the scenes, there’s something missing: an uptick in on-chain activity. Conflux has positioned itself as being China’s Ethereum, with a regulatory-compliant digital ledger, that doesn’t have a token, available within mainland China.
Analysts speaking to CoinDesk in the past have called it a “one country, two systems” protocol, with its ability to straddle both the global crypto markets with a token and act as a digital ledger within mainland China, partnering with domestic web giants like China’s version of Instagram.
Given that insiders say that Beijing is warming to the idea of stablecoins to counter U.S. dollar hegemony, and Conflux is prepping an offshore-yuan stablecoin, the market euphoria is certainly justified. In the last 30 days, CFX is up over 190%.
All of this isn’t really reflected on-chain.
Aside from occasional spikes, transaction activity hasn’t grown in the last year, per data from network block explorers.
