Convex Soars By 57% After Token Unlock Provides A Bullish Catalyst.

A recent Convex Finance token unlock has sparked a bullish surge in the Curve Finance token ecosystem. Since the unlock began, the CVX and CRV tokens have both increased by more than 50%.

The CVX token of the DeFi protocol, which was created to help optimize profits from the Curve Finance exchange, has increased by more than 57% since more than 27.4 million tokens were unlocked at the end of June.

Despite expectations that a huge number of CVX tokens would drive down values, the unlock has instead functioned as a bullish driver for the network. Now that the unlock has occurred, it appears that consumers are more eager to deposit their tokens into Convex without concern of price drops caused by the token release.

CVX has gained 57.5% since the unlock began on June 30, giving relief from Convex’s months-long declining trend. CVX peaked at $38 in April; three months later, the token had dropped by more than 90%.

According to data provided by user 0xroll from Dune Analytics, around 42% of all CVX tokens from the recent unlock have been relocked in the protocol so far. The remaining tokens have either been removed or are awaiting owners’ decisions on whether or not to relock them.

Although CVX tokens are unlocked on a weekly basis, the numbers are frequently so minimal that they have no impact on prices. The next significant Convex token release is set for Oct. 27, when another 21.7 million tokens will be made available.

Curve’s yielding CRV token appears to have benefited from the Convex unlock as well. CRV has risen 53% after hitting a low of $0.64 on June 30 and is now trading at $0.98.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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