The growth of the stablecoin industry in encryption has been one of the most influential developments in 2021. In particular, according to CoinMarketCap, stablecoins have become an indispensable part of the ever-expanding Decentralized Finance (DeFi) ecosystem, as their total value exceeds $162 billion.

Due to its focus on stablecoins and the Curve Finance (CRV) ecosystem, one project whose token prices have soared is Convex Finance (CVX), which aims to help users increase CRV mortgages to maximize revenue.

Data from Cointelegraph Markets Pro and Transaction view It shows that since reaching a low of US$18.79 on December 4, the price of CVX has soared by 215%, setting a record high of US$60.22 on December 27. During the same period, its 24-hour transaction volume soared from an average of US$20 to one million to more than US$163 million.

Three reasons for CVX’s record highs include the launch of new assets on the agreement, the listing of CVX tokens on several well-known exchanges, and the continuous growth of the total value (TVL) locked in the Convex agreement.

Launch of new assets and LP pool

One of the reasons Convex Finance built its strength in December was the addition of new assets, including new opportunities to provide liquidity to support the Convex platform. Recently, Convex announced that it will expand its focus on Curve Finance by adding support for the emerging Frax Finance stablecoin ecosystem.

This @fraxfinance <-> Convex soft start has started.https://t.co/oZ9WKZxNXR

Deposit + conversion U.S. dollar foreign exchange arrive $cvxFXS

-Convex Finance (@ConvexFinance) December 22, 2021

In addition to adding a new stablecoin protocol to its ecosystem, Convex also launched an Ether/CVX pool on the Curve v2 protocol and a new CRV/Ether pool on Convex supply The expected yield is 178.49%.

New exchange listing

The second factor that helps increase the price and trading volume of CVX is the listing of the token on several well-known exchanges, including Binance on December 22 and Huobi Global on December 23.

CVX is now available on Binance! https://t.co/EBaescRNf1

-Convex Finance (@ConvexFinance) December 23, 2021

After being listed on these two exchanges, the price of CVX soared from US$34.83 to US$45.76, a 42% increase in less than 36 hours.

On November 26, when the token was listed on the cryptocurrency exchange OKEx, the value of CVX also increased.

related: 3 reasons why Curve (CRV) prices are trending towards a new 1-year high

Locked total value rises

According to data from Defi Llama, the third factor that demonstrates the growing strength of Convex Finance is to lock in the total value of the agreement, which set a record high of US$19.49 billion on December 29.

The steady rise of assets locked in the agreement has elevated Convex Finance to the third-ranked agreement in TVL among all DeFi, second only to Aave. Aave reports that the total liquidity of all supporting networks is US$26.56 billion, while Curve Finance TVL is 23.14 billion U.S. dollars.

As the Convex ecosystem expands and continues to increase support for projects such as Frax and potential TerraUSD (UST) in the future, the TVL of the agreement may continue to rise and may surpass the TVL of Curve Finance because it incorporates other stability Currency agreement.

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