Convex Finance is a staking platform that allows Curve Finance liquidity providers to earn rewards without having to lock up their tokens.
In this article, we will talk about the platform, its native currency (CVX), and come up with predictions.
What is Convex Finance (CVX)?
An anonymous group of developers developed Convex Finance to let its liquidity providers earn more money without locking their CRV tokens. There are no withdrawal fees and only minimal performance fees on the platform.
Providing liquidity and staking are two important ways for the protocol to benefit more.
Providing Liquidity
The Convex protocol allows users to deposit Curve LP tokens. These liquidity providers are rewarded on Curve with enhanced CRV incentives because other users have also locked their CRV tokens with Convex. Other CRV stakers contribute to the increase. Convex increases rewards by having a large number of people use it.
If you were to do everything on your own, you’d have to buy Curve tokens, stake them to earn Curve LP tokens, and then become eligible for the high yield. Convex, on the other hand, optimizes this process by performing it in mass, resulting in a quicker production of CRV as more people use it. Because you don’t manually lock up your Curve tokens, you can withdraw them from Convex anytime.
Staking
You can still use Convex to stake your CRV tokens and get a piece of the enhanced rewards even if you’re not a liquidity provider. You will obtain veCRV if you stake CRV tokens on Curve directly, compensating you by sharing a part of the Curve platform’s trading fees.
On the Convex platform, you can stake CRV tokens in exchange for cvxCRV tokens. The cvxCRV tokens offer the same benefits as veCRV, including airdrops to holders and rewards from the Curve platform. Staking on the Convex platform, however, is a one-way transaction. There’s no going back once you bet on Convex and convert CRV to cvxCRV. Your CRV will be locked into the Curve protocol and converted into Curve Liquidity Pool tokens, which are in charge of optimizing incentives throughout the whole Convex ecosystem.
How Does Convex Finance Work?
Convex Finance is a DeFi protocol built on top of Curve Finance that aims to provide Curve’s users with more rewards.
Curve Finance rewards liquidity providers with its native cryptocurrency, CRV. Furthermore, it allows users to lock up CRV tokens in order to get voting rights. Users earn veCRV for locking up their CRV; the longer their CRV is locked up (up to 4 years), the more veCRV they receive. Aside from voting rights, veCRV holders also receive a share of the Curve platform’s trading revenue of 50%.
This is where Convex comes in, as it offers increased CRV rewards to Curve liquidity providers. Users need to lock their tokens with Convex to obtain more CRV rewards. In other words, you instantly begin earning more CRV as soon as you deposit any quantity of Curve LP tokens on Convex Finance. You can withdraw your tokens at any time without facing any penalties.
Convex Finance (CVX) Price Analysis
Convex Finance (CVX) went live in May 2021. According to CoinMarketCap, around that time, the token was trading at $5.40.
After a month, CVX experienced a bullish rise and reached $20.15. However, this bullish rise was not for long. For two months straight, Convex Finance had a fall and was trading at $4.80 around August of that year. 2021 started on a good note for CVX, and the coin started to increase. In January 2022, the coin reached its all-time high of $62.69. With the market being in the fall, it impacted the price of Convex Finance, too, as it experienced a significant decrease. As such, the current price CVX is trading at is $4.14
Moreover, CVX has a market cap of $226 million, a circulating supply of 63 million, and ranks #108 on crypto market rankings.
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Currency Prediction Convex Finance (CVX) Price Prediction
We are optimistic that the price of Convex Finance might significantly increase in the short and long term. As such, we came up with our predictions for the coin. However, we suggest that you do your research before purchasing any cryptocurrency.
Currency Prediction Convex Finance (CVX) Price Prediction 2022
Convex Finance started the year real bullish, trading at $50.02. After reaching that high, the crypto market started to fall, resulting in a price decline for CVX. Currently, the coin is trading at $4.14. We suggest that Convex Finance might end this year at a maximum price of $14.06 and a minimum of $12.07.
Currency Prediction Convex Finance (CVX) Price Prediction 2023
Convex Finance’s current price range could pique the interest of many investors. As a result, CVX might reach $21.12 by 2023, with significant assistance from financial institutions. We expect the coin to have an average price of $18.43 and a low of $13.37.
Currency Prediction Convex Finance (CVX) Price Prediction 2024
With specific collaborations and advancements, CVX has much potential to expand in terms of users and adoption. If the market decides to invest in Convex Finance, the price might skyrocket. As such, we predict the coin might reach a maximum price of $31.85 by the end of 2024.
Currency Prediction Convex Finance (CVX) Price Prediction 2025
We are very optimistic about CVX’s future. Currency Prediction suggests that the price of CVX might reach a maximum of $44.83, a minimum of $37.56, and an average of $38.93 by the end of 2025.
Currency Prediction Convex Finance (CVX) Price Prediction 2026
As of 2026, Convex Finance might reach a level similar to its previous all-time high. We predict that the coin might reach an average price of $53.87 and a minimum of $39.64 this year. If the market turns bullish and in CVX’s favor, then the price might reach a maximum of $66.50.
Convex Finance (CVX) Market Price Prediction
Most crypto experts have an optimistic view regarding the CVX price. Here’s what some of them have to say.
Wallet Investor
Wallet Investor predicts that the price of CVX will increase significantly in the future. They suggest that by 2023, the price of Convex Finance might be around $22.76, a 546.6% increase from the current price (at the time of writing, $4.14). By 2024, this price can be $39.57. Convex is seen to have a bright future, and we can see this in the 2027 price prediction, where CVX might trade at $91.29.
Priceprediction.net
Priceprediction.net is another optimistic prediction website for CVX. According to them, CVX might reach $18.76 by the end of this year. In 2026, the coin could increase further and reach $90.52. By the end of the decade, in 2031, they predict that CVX can reach $565.39, reaching a new all-time high.
Digital Coin Price
Digital Coin Price expects a price increase of CVX in the future, however, at a slow pace. According to them, the coin might end this year at $4.91. By 2027, it could reach $9.43 and end the decade at $19.65.
Frequently Asked Questions (FAQs)
Is CVX a Good Investment?
The platform has established itself as a key participant in the DeFi industry, and the coin has performed very well. It’s important to understand that the crypto market is extremely volatile, and the value of all tokens and coins can go up and down. However, if you want to make a long-term investment, CVX could be an excellent choice.
Is CVX on Binance?
CVX went live on Binance as of December 2021. If you want to invest in CVX and Binance is your preferred exchange, now you have the opportunity to.
How to Buy Convex Finance (CVX)?
Convex Finance (CVX) is listed in some of the major cryptocurrency exchanges. This article will show you how to buy CVX on Binance.
Step 1: Open An Account
The first step is to open an account on Binance. You can do so via the website or Binance App, which is available on iOS and Android. After you choose your preferred option, you can continue using your email or mobile number.
In order to continue to purchase CVX or any other coin, you will need to verify your account. This is a simple process as you only have to provide your ID and a photo of yourself holding it. The verification process can take up to 24 hours.
Step 2: Fund Your Account
The next step is to fund your account. Binance offers you four methods to do so.
- Credit/debit card
- Bank deposit
- P2P trading
- Third-party payment (ADVcash, Etana, Flutterwave, Simplex, Bifinity)
Step 3: Buy CVX
The third and final step is to buy CVX.
After you fund your account, it’s time to buy your coin. You can do so by putting the amount of CVX you want to purchase and then press BUY.
Takeaways
- Convex Finance is a platform that allows its providers to receive rewards without unlocking their CRV tokens.
- The platform has no withdrawal fees but has minimal performance fees.
- Convex Finance is a DeFi protocol.
- The current price of CVX is $4.14.
- CVX is expected to increase in the future and might reach $66.50 by the end of 2026.
