Convex Finance resisted the urge to follow in the footsteps of other protocols as TVL dipped below $40 billion
CVX on-chain traded in line with declines
Despite the sixth position in the Total Value Locked (TVL) ranking, Convex finance [CVX] failed to send the DeFi TVL to its lowest point since February 2021 Crooked finances [CRV]based staking platform defied the trend of other top protocols leading to a 34.44% increase in the last 30 days.
Read Convex finance [CVX] Price prediction 2023-24
Others contributed significantly to the fall below $40 billion. Guiding protocol MakerDAO [MKR] slipped 11.52% within the same time frame. Uniswap [UNI]single, lost 12.27%, according to data from DeFi Llama.
Slow down, CVX is still suffering
However, CVX has been unable to maintain its momentum in recent times. Based on information from the DeFi aggregator, Convex’s 24-hour TVL indicated an increase of 0.50%, representing a weekly decline of 3.42%.
The first insight into CVX’s on-chain status revealed that the spike brought profits to investors. Santiment, the behavioral data-based crypto platform, showed a 1.61 million increase in daily on-chain volume in earnings on December 13.
However, CVX stalled the run as profits on the chain fell to 42,300 at the time of writing. Essentially, this should have moved to using losses. In response, Santiment revealed that CVX investors had recorded loss of value as the daily on-chain volume of losses was higher at 64,200.
The TVL increase meant that Convex Finance experienced increased in-chain deposits under the protocol. Hence one revival in active addresses should be the case.
An assessment of the daily active addresses showed that there were notable increases between the 30-day period, demonstrating relatively improved network activity. Recent participation within the Convex network dropped further to 124.
Furthermore, pain did not seem to leave the CVX ecosystem. This was due to the status represented by the Network Value to Transaction (NVT) circulation ratio. The NVT represents the relationship between market capitalization and circulation.
At the time of going to press, the NVT circulation ratio was remarkably high at 1217. This indicated that the CVX network value exceeded circulation. The high value of this metric signaled a bearish reading.
NFT engagement did not follow
In the course of the total value lock, NFT merchants are resisting the buying and selling of collectibles under the Convex chain. According to Santiment, the highest value of NFT trading volume was $1.42 million on Dec. 6.
This represented lower turnover compared to the peak around September 29. At the time of writing, the CVX price was rarely affected and was trading at $3.44 – down 10.66% over the past seven days.
This post How convex finance [CVX] struck a different note as DeFi TVL hit its 22-month low
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