The price of Conflux (CFX), China's only public blockchain that complies with China's regulations on cryptocurrency activity, has experienced huge gains in just one week, a 500% growth that allowed it to enter the top 100 cryptocurrency ranking, that after the Asian giant announced that it would seek public feedback on the upcoming cryptocurrency licensing regime that would open the doors to cryptocurrency trading.
CFX Is skyrocketing by more than 500 percent. Source: image elaborated in Powerpoint, the CFX logo was taken from Coinmarketcap.
Conflux is a layer 1 consensus blockchain network that works with the Tree-Graph consensus algorithm, which allows them to optimize security and scalability without having to sacrifice decentralization, overcoming the well-known scalability trilemma. This algorithm has a divergent structure, which allows it to process multiple blocks and transactions simultaneously, thus reducing confirmation times, and ultimately forming a serial chain by establishing a precise chronological order of each block. This contrasts with the linear architecture of networks such as Bitcoin or Ethereum, which forces them to confirm blocks one by one; and this gives the Conflux network greater speed and scalability.
As we read on the Conflux website, its mission is to provide tools for creators, communities and markets to connect globally, its economy is based on the CFX token, a token that allows its holders to pay transaction fees, get staking rewards, rent storage and participate in the governance of the network. It is also used to reward miners who keep the network running.
Now, according to data from Coinmarketcap, at the time of this publication, Conflux ranks 77th in the ranking of cryptocurrencies with the largest market capitalization, with approximately $640 million.
Conflux's position in the cryptocurrency ranking. Source: Coinmarketcap
What is interesting is that just a week ago its market capitalization was about $106 million, which represents an increase of more than 80%.
Screenshot taken from Coinmarketcap.com
We can also see a considerable increase in its value, since in the last seven days its price went from approximately $0.05 to $0.31, which represents an increase of 500% with respect to its initial value.
Screenshot taken from Tradingview.com
This growth seems to have skyrocketed following the announcement of Conflux's partnership with China Telecom, with the aim of developing a blockchain-based SIM card. This "BSIM" would be a secure device for storing digital private keys and would enable the exchange of NFTs.
Screenshot taken from Conflux twitter
The development of this device is expected to lower the Web3.0 barrier to entry by making the transfer of users' digital assets to this telecommunications company faster and more secure. And at the same time making cell phones more secure.
While factors such as a novel consensus mechanism as a solution to the scalability problem and being the only regulatory compliant blockchain in China, combined with the partnership with a major telecom provider and the possibility of the cryptocurrency trading ban being lifted, have meant that Conflux has seen significant growth in the crypto sector.
Although the bullish momentum of this altcoin is still expected to continue, an RSI in the overbought zone warns of a possible correction, so remember to do a good analysis at this point if this project and its interesting propositions catch your attention.