Convex Finance's CVX token rallied 22% in the past day, reaching a valuation of $260 million, with trading volume near $26.66 million. The gain came alongside an inflow of capital into CVX's on-chain market, a surge in the number of holders, and positioning in the perpetual market that suggests traders are anticipating further upside.
Holder count and income reach new highs
The number of CVX holders rose to an all-time high of 32,410. Between October 12 and October 21, the holder base expanded by 500 addresses. A surge in holders often indicates capital flowing into the asset. Token Holder Income has also performed relatively well since the start of October, with roughly $499,000 paid to Convex Finance holders this month.
On-chain activity supports the rally
Total Value Locked (TVL) has gradually increased over the past couple of days. Between October 15 and October 21, TVL surged by roughly $30 million. A rise in TVL implies that investors are likely depositing more capital into the protocol because they anticipate continued near-term performance.
Fees generated by the protocol also spiked during the same period, rising from $25,626 to approximately $137,430 at the latest count, according to DeFiLlama. Growing activity and increased adoption add to the asset's bullish market performance.
Positive funding rate backs bullish outlook
Perpetual market activity reflects the same bullish outlook, with CVX's funding rate remaining positive at 0.021%. A positive funding rate indicates that long traders are paying funding fees to maintain their positions relative to short traders. Typically, this occurs when traders expect the price to continue moving in the direction of the prevailing trend, which in this case is bullish. A continued positive funding rate would imply that the asset is likely to maintain its bullish stance in the near term.
Final summary
Convex Finance rallied as token holders reached an all-time high of 32,410, with Token Holder Income hitting roughly $499,000 this month. CVX's TVL increased by $30 million, while protocol fees rose to $137,430, and the funding rate remained positive at 0.0021%.
