Conflux’s CFX emerged as the winner while trading the weekend, winning about 14%according to Coindesk market data and exceeding the wider Coindesk 20 index, which increased by 4%.
Behind the scenes, however, is missing something: a Uptick in activity on the chain. Conflux has positioned itself as being China’s Ethereum with a regulatory-compatible digital headbok that does not have a symbol available on the Chinese mainland.
Analysts who speak to Coindesk in the past have called it a “a country, two systems” protocol, with their ability to stroll both of the global crypto markets with a symbol and act as a digital headbook within the Chinese mainland, and cooperate with domestic web giants such as China’s version of Instagram.
Given that Insiders say Beijing is heated to the idea of stableecoins to counter the US dollar hegemony, and Conflux is preparing for an offshore-yuan stableecoin, the market is definitely justified. In the last 30 days, CFX has risen over 190%.
All this is not really reflected on-chain.
Apart from occasional spikes, transaction activity has not grown in the last year, per year. Data from Network Block Explorers.
In fact, it’s still down from 2022 daily average.
Other data on the chain shows that almost 80% of the total gas used in the protocol comes from three accounts, creating one about centralization level.
In contrast, with Ethereum, the largest gas plaster accounts for less than 10% of the total gas used on the network.
There is definitely a growing China narrative at the moment. Any kind of rumor that the Chinese mainland has banned crypto directly is demonstrably false. Hong Kong’s embrace of crypto reflects how stock markets in Shanghai learned from their colleagues in the city before opening the mainland China’s stock markets in the 1990s.
However, the question still is: Is Conflux the best power of attorney for this tale? Data on the chain suggests otherwise.
