Conflux (CFX) Price Surges 105%: Mainnet Upgrade & RMB Stablecoin Drive Rally
2025-07-21 08:37:44Conflux (CFX) Surges Over 100% Following Mainnet Upgrade and RMB Stablecoin Announcement
A Stunning Rally Defies Market Trends
In a week marked by cautious trading across major cryptocurrencies, Conflux (CFX) has emerged as a standout performer, skyrocketing over 105% in just 24 hours. The rally, fueled by a combination of a major network upgrade and the unveiling of a new Chinese yuan (RMB)-pegged stablecoin, has sent shockwaves through the crypto market. But what’s driving this unprecedented surge—and can the momentum last?
The Catalysts Behind CFX’s Meteoric Rise
Mainnet Upgrade: A Leap Toward Scalability
On July 20, Conflux Network successfully rolled out its "Hydra" mainnet upgrade, a pivotal enhancement designed to boost transaction throughput and reduce latency. According to CoinDesk, the upgrade introduces a novel sharding mechanism that allows the network to process up to 3,000 transactions per second (TPS), a significant leap from its previous capacity.
Developers behind Conflux have emphasized that Hydra’s improvements extend beyond speed—its new cross-chain interoperability features aim to position Conflux as a bridge between decentralized finance (DeFi) ecosystems in Asia and the West.
The RMB Stablecoin Factor
Perhaps the bigger bombshell was Conflux’s partnership with a consortium of Chinese banks to launch an offshore RMB-backed stablecoin, dubbed "CNHX." As reported by AInvest, this move marks one of the first major blockchain projects to directly integrate China’s currency into decentralized finance. While China maintains strict capital controls, CNHX is designed for use in international trade settlements, circumventing traditional banking bottlenecks.
Market analysts suggest that the stablecoin’s reveal has triggered speculative buying, particularly among Asian investors. "This isn’t just about Conflux’s tech—it’s about the potential for RMB liquidity in DeFi," said Lena Wong, a Singapore-based crypto strategist quoted by BeInCrypto.
Market Reaction: A "God Candle" and Record Volumes
Price Action and Trading Frenzy
Data from OKX reveals that CFX’s price catapulted from $0.23 to a peak of $0.47 within hours of the announcements, forming what traders call a "god candle"—a rare, massive green candlestick signaling extreme bullish sentiment. Trading volumes exploded to $1.2 billion, surpassing even Bitcoin’s daily turnover on some exchanges.
The rally didn’t go unnoticed by institutional players. Blockchain analytics firm Santiment noted a spike in whale transactions (transfers exceeding $100k), suggesting that high-net-worth investors are accumulating CFX ahead of further developments.
Short Squeeze Amplifies Gains
A report from Bankless Times highlights that CFX’s surge was exacerbated by a short squeeze. Prior to the announcements, CFX had a relatively high short interest ratio on derivatives platforms like Binance and Bybit. When the news broke, cascading liquidations forced bears to cover their positions, adding fuel to the uptrend.
Expert Insights: Sustainable Growth or Speculative Bubble?
Bullish Case: Institutional Adoption on the Horizon
Proponents argue that Conflux’s unique positioning—a regulatory-friendly blockchain with ties to China’s financial infrastructure—could attract long-term institutional interest. "Conflux isn’t just another Layer 1. Its compliance-first approach makes it a potential gateway for TradFi into crypto," remarked David Lin, an analyst cited by CCN.
Bearish Warnings: Profit-Taking Risks
However, skeptics caution that the rally may be overextended. "CFX’s RSI (Relative Strength Index) hit 85—deep in overbought territory. A correction is almost inevitable," warned Markus Lopez, a technical analyst at AInvest. Historical data shows that altcoins with similar parabolic moves often retrace 30-50% before stabilizing.
What’s Next for Conflux?
Upcoming Milestones
CNHX Stablecoin Pilot: Slated for Q3 2025, the trial will involve Hong Kong-based trading firms.
Enterprise Partnerships: Conflux is rumored to be in talks with e-commerce platforms to integrate CFX for cross-border payments.
Price Predictions: A Divided Outlook
Optimistic Scenario: If CFX holds above $0.35, analysts project a retest of $0.60 by September.
Cautious Scenario: A drop below $0.30 could signal a return to pre-rally levels.
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Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.
Sources:
CCN: "Conflux (CFX) Price Soars After Major Mainnet Upgrade"
AInvest: "Conflux CFX Surges 105%: Upgrade & RMB Stablecoin Fuel Rally"
CoinDesk: "Conflux’s CFX Price Doubles on Stablecoin Reveal, Upgrade Plans"
BeInCrypto: "Conflux (CFX) Crypto Rally: What’s Driving the Boom?"
Bankless Times: "CFX Price Prediction: Why Conflux Formed a God Candle"
OKX: "CFX Rally: Riding the Crypto Market Momentum"