Over the weekend, Conflux’s CFX token surged 14%, outperforming the broader digital asset market. This rally follows renewed attention on Conflux’s unique positioning as a China-aligned blockchain platform. However, despite the strong price movement, on-chain data reveals lingering weaknesses that may hinder long-term momentum.
CFX Price Up 14%, Outperforms Broader Market
In the last trading session, CFX gained 14%, compared to a modest 4% rise in broader crypto indices. The strong price action appears to be driven by speculation around China’s evolving stance on blockchain adoption. Insiders hint that Beijing may be warming up to stablecoins and domestic blockchain infrastructures — a narrative that plays directly into Conflux’s strategic goals.
CFX has gained over 190% in the past 30 days, fueled by optimism over its role in China’s blockchain future.
Lack of Growth in On-Chain Activity Raises Concerns
Despite market euphoria, Conflux’s on-chain activity tells a different story. Data from network scanners shows that transaction volume remains flat, with daily activity still trailing behind 2022 levels.
There has been no significant uptick in usage, even with increased token price and publicity.
Moreover, network centralization remains a major red flag. Analysis indicates that nearly 80% of gas usage is generated by just three accounts, raising questions about real adoption and decentralization.
China’s Blockchain Strategy May Benefit Conflux — Eventually
Conflux positions itself as a “dual-system” blockchain, serving both global token holders and local Chinese enterprises via its compliant ledger. Its upcoming offshore-yuan stablecoin may serve as a strategic bridge if China seeks alternatives to U.S.-based financial systems.
Conflux’s strong partnerships with Chinese tech firms support its vision, but real-world usage is still lagging.
Hype Outpaces Fundamentals — For Now
While CFX’s rally is driven by geopolitical narratives and speculative optimism, the lack of on-chain growth and centralization issues may limit sustainable upside. For Conflux to transition from hype to utility, broader network engagement and user participation must rise in parallel with token valuation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.