Conflux (CFX) Plunges 16% Despite DWF Labs Investing $18M

Conflux (CFX) has shown a positive performance so far in 2023, earning itself a place among the best performing altcoins in the first half of the year. However, “Chinese Ethereum” has been trading in the red for the past few days. According to data from CoinGecko, CFX lost about 16% of its value last week.

DWF Labs acquires $18 million worth of CFX tokens

This drop in CFX price comes despite the acquisition made by DWF Labs last week. On Wednesday, June 28, Conflux Network announced that the multi-stage Web3 investment firm had bought $18 million worth of its tokens.

DWF Labs Backs Conflux With $18 Million!

DWF Labs, a global digital asset market maker and multi-stage Web3 investment firm, has confirmed its commitment to supporting the development of Conflux.

Demonstrating its commitment, DWF Labs purchases $18M worth of…

– Conflux Network Official (@Conflux_Network) 28 June 2023

This latest investment follows up on the initial $10 million purchase of CFX tokens in March. This is considered a demonstration of DWF Labs’ commitment to “supporting the development of Conflux”.

In a tweet, Andrei Grachev, head of DWF Labs, emphasized how the network is a great technology and how his company is looking to grow its CFX holdings.

@Conflux_Network This is a shining example of how a great team, technology, BD, GR and PR should perform. We’ve known each other for ages and I’m so happy to extend it $cfx Holding and supporting people in everything.
Long East, Long HK, Long WEB3
LFG! pic.twitter.com/hSzb3VYjfP

— Andrei Grachev (@ag_dwf) 28 June 2023

Conflux has built a reputation as a cutting-edge technology thanks to its “tree-graph” consensus algorithm, which enables the blockchain to achieve high transaction throughput (TPS) of up to 6,000 transactions.

As previously predicted, the Conflux ecosystem has been experiencing steady growth since the beginning of the year. Recently, blockchain revealed a partnership with dappOS, which promises mutual benefits for both entities.

Conflux so far in 2023 – Price Overview

The CFX price has been on an uptrend for most of the year, registering an increase of 825% over the past six months. This price rally is in line with the expansion and increased adoption of the Conflux ecosystem.

During the peak of this rally, Conflux announced several strategic partnerships with some of China’s largest companies. Specifically, the tree-graph consensus algorithm Layer-1 network announced a partnership with China Telecom in February to develop a blockchain SIM (BSIM) card.

However, we have seen a downward trend in the price of the coin from its highs at the beginning of the year. Since reaching its yearly peak of $0.4613 on March 20, the CFX token has lost over 55% of its value, trading as low as $0.176 in mid-June.

As of this writing, CFX is changed at $0.204467 coingeco data, This represents an increase of 1% in the last 24 hours. As mentioned, the coin has declined in price in recent weeks, having lost more than 28% in the past month.

CFXUSD trading at $0.205142 | Source: CFXUSD chart from TradingView

The daily trading volume of Conflux Token is $44.4 million, which represents a 62.6% drop from the previous day. A decrease in 24-hour trading volume indicates a recent decline in market activity.