In the recent volatile consolidation pattern of the cryptocurrency market, Conflux (CFX) has emerged with an astonishing rise. On July 20, the CFX price surged straight from around $0.11 to a high of $0.25, with a daily increase of over 100%, attracting widespread attention from the market. Calculating from the bottom of $0.02 at the end of December 2022, its cumulative rise has exceeded 10 times, making it one of the most outstanding encryption assets in July.
According to Gate market data, as of July 28, CFX is priced at 0.1875 USD, with a 24-hour rise of 2.57%, firmly holding the top spot in popularity.
Three Core Driving Forces Ignite Market Enthusiasm
- Conflux 3.0 Technical Upgrade: At the Conflux Technology and Ecological Development Conference held in Shanghai from July 18 to 20, Chief Technology Officer Dr. Guang Yang announced that Conflux 3.0 will officially launch in August. This version introduces parallel block processing and AI agent support, increasing the network throughput from the current 3,000-6,000 TPS to over 15,000 TPS, and can even reach higher levels in simple scenarios such as payments. This technological breakthrough significantly enhances Conflux’s competitiveness as a high-performance public chain, providing underlying support for complex applications.
- Offshore RMB Stablecoin Strategic Pilot: Conflux announced its participation in the pilot issuance of offshore RMB stablecoins for China’s Belt and Road Initiative. This project focuses on issuing stablecoins pegged to offshore RMB (CNH) to facilitate cross-border trade settlement and RWA (real-world asset) applications in countries along the Central Asia and Southeast Asia routes. This plan complements the financial innovation policies of the Shanghai Free Trade Zone — the National Financial and Development Laboratory recently proposed exploring a "domestic offshore + foreign offshore" stablecoin linkage model, and Conflux has partnered with Hong Kong fintech company AnchorX (supported by Hony Capital) and smart card company Eastcompeace to advance the implementation of cross-border payments and asset settlement.
- Capital Operations and Associated Actions with Listed Companies: Hong Kong-listed company Pioneer Pharma Biotechnology (00399.HK) announced on June 30 that it has signed a memorandum of understanding with Conflux and related parties to acquire part of Conflux’s assets. Notably, Conflux co-founders Long Fan and Wu Ming are both executive directors of Pioneer Pharma. Following the announcement, Pioneer Pharma’s stock price surged 240% in a single day, and the market interpreted this as an important signal for the capitalization of the Conflux ecosystem.
Market Data Reveals Fund Trends
- Market Capitalization and Trading Volume: At the peak on July 20, CFX’s market capitalization surpassed $1.13 billion, with a 24-hour trading volume rising by 1050% to $1.74 billion. As of July 28, the market cap remained around $870 million, with a monthly increase of 202%.
- Capital Differentiation Signals: Despite the high activity, data from July 27 indicated that CFX saw a net outflow of $5.6468 million in major funds over 24 hours, with only $263,500 net inflow from retail investors, suggesting increased short-term profit-taking pressure.
Technical Trends and Short-Term Risk Analysis
From a technical perspective, CFX has opened up the upward space after breaking through the key resistance level of 0.18 USD. If it can stabilize at 0.20 USD, the next target will point to the March 2024 high of 0.55 USD. However, short-term risks should not be ignored:
- Profit-taking may lead to a price retracement to the support levels of 0.14 USD or even 0.10 USD;
- The offshore RMB stablecoin pilot is still in the early stages, and regulatory details are not yet clear;
- The actual performance of Conflux 3.0 in August will face market validation.
Long-term Ecological Value Outlook
The explosion of Conflux is not an isolated event; its strategic positioning aligns with two major trends:
- Blockchain + Cross-border Financial Infrastructure: Leveraging the market of over 1 trillion USD investment scale from the "Belt and Road" initiative and a projected annual revenue of 1.6 trillion USD by 2030, Conflux is expected to become a technical testing ground for the internationalization of the Renminbi.
- Compliance Technology Innovation: Under the collaborative exploration of stablecoin frameworks between Hong Kong and mainland China, Conflux’s technological neutrality and compliance cooperation model may create a template effect.
Technological upgrades are the engine, and policy dividends are the fuel—Conflux’s breakthrough confirms that the competition among public chains is entering a dual-track era of "technological innovation + geopolitical collaboration."
Conclusion
The big pump of CFX is the market’s concentrated pricing of Conflux 3.0’s technological breakthroughs and the strategic positioning of offshore RMB stablecoins. Although short-term capital divergences may lead to volatility, Conflux’s layout in cross-border payments, RWA, and compliance innovation has opened up a differentiated path for its competition in the Layer 1 public chain. With the mainnet upgrade implemented in August and pilot details disclosed, whether CFX can maintain its strength will depend on the substantial progress of ecological applications and the synergistic resonance of market sentiment.
