I knew about Conflux during this bear market and started keeping an eye on it ever since. Compared to other layer-1 altcoins, I noticed that it's not very popular here in the West. Living in the U.S., I rarely come across discussions involving Conflux like other layer 1 blockchains such as Avalanche, Fantom, and Polygon.
On the contrary, Conflux seems to have a good impact on the Asian market. In fact, it's the only regulatory-compliant, public permissionless blockchain in China. A great achievement when you think about how the Chinese government feels about other cryptocurrencies.
The blockchain company previously said it will build blockchain-based SIM cards in partnership with China Telecom, the second-largest wireless carrier in China with an estimated 390 million subscribers. Conflux Network CTO Ming Wu told CoinDesk in March that the protocol aimed to “take the leading role to help Hong Kong and mainland China to carry out their expansions in the Web3 area.” The first BSIM pilot program in Hong Kong is expected later this year, with plans for similar pilots in key mainland China locations such as Shanghai.
They have been keeping up with updates and partnering with multiple blockchain projects including Alchemy Pay for seamless web3 ecosystem on-boarding.
Conflux’s native token has risen from $46 million to nearly $416 million now – making CFX one of the best-performing tokens. CFX is still up 51% since it's been launched as of the time of writing. But its ecosystem seems to have a very low Total Value Lock (TVL) compared to other blockchains.
Conflux Ecosystem and Total Value Lock (TVL)
The graphic helps illustrate how low is Conflux TVL compared to other EVM-compatible blockchains. This indicates that there may be plenty of room to grow as the blockchain gets more adopted.
Source: DefiLlama
The project with the largest market capitalization (MC), Nucleon, is only valued at $2.5 million at the time of writing. Nucleon is a liquid staking solution for Conflux PoS backed by industry-leading staking providers. Nucleon lets users stake their CFX- without locking assets or maintaining infrastructure.
Other major projects in the ecosystem are:
- Swappi: Swappi is the leading Decentralized Exchange (DEX) on the Conflux blockchain. MC: $2.3 million.
- ABC Pool: A Conflux PoS pool that allows users to participate in PoS safely and pledge CFX without loss to obtain CFX and ABC rewards. MC: $345K.
- Goledo: Goledo is a cross-chain lending and borrowing protocol based on Aave. Depositors earn passive income by depositing their digital assets into the algorithmic liquidity market, while both overcollateralized and undercollateralized loans are enabled for borrowers. MC: $939k.
If Conflux is to become a more valued blockchain in the future, these projects above could easily increase enormously in value. You can do your own research on them to learn more about them. I already did some research on them and I found that projects have an engaging community while some even received grants from the Conflux Foundation.
Not to forget that Conflux native token CFX may also rise in value, breaking its all-time high of $1.70.
It's hard to predict what will happen in the future but always wise to keep an eye on underdogs. It may seem harder to think of some projects dethroning the top dogs like Ethereum or Bitcoin. All I can say is that history repeats itself. During the internet boom, some top internet companies like AOL or Yahoo have indeed been dethroned by underdogs like Google or Amazon. Why shouldn't the same happen with cryptocurrencies and blockchain?
