by - Convex Finance resisted the urge to follow in the footsteps of other protocols as TVL slipped below $40 billion
- CVX in chain acted in accordance with the declines
Despite its sixth position in the Total Value Locked (TVL) ranking, Convex Finance [CVX] failed to send DeFi TVL to its lowest since February 2021. The Curve Finance [CRV]The platform-based staking platform defied the trend displayed by other leading protocols, resulting in a 34.44% increase in the last 30 days.
Read Convex finance [CVX] Price prediction 2023-24
Others were a major contributor to the drop below $40 billion. Main Protocol ManufacturerDAO [MKR] slipped 11.52% in the same time frame. Uniswap [UNI]unaccompanied, lost 12.27%, according to data from DeFi Llama.
Source: DeFi Lama
Slow down, CLC still suffers
CLC however has not been able to maintain its momentum lately. 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%.
Initial understanding of CVX’s on-chain status revealed that the spike provided gains for its investors. Santiment, the crypto platform based on behavioral data, show a 1.61 million increase in daily on-chain earnings volume on Dec. 13.
However, CVX halted the run as on-chain earnings fell to 42,300 at press time. In essence, this should have shifted to using losses. In response, Santiment revealed that CVX investors experienced a loss in value as its daily on-chain loss volume was higher at 64,200.
Source: Santiment
The rise in TVL meant that Convex Finance saw an increase in on-chain deposits under the protocol. Therefore, a turnaround in active addresses should have been the case.
An evaluation of daily active addresses showed that between the 30 day period there were noticeable increases showing relatively improved network activity. Recent participation within the Convex network has dropped further to 124.
Moreover, the agony does not seem to have left the CLC ecosystem. This was due to the status displayed by the Network Value Circulation to Transaction (NVT) ratio. The NVT shows the relationship between market capitalization and circulation.
At press time, the NVT circulation rate was remarkably high at 1217. This indicated that the value of the CVX network exceeded circulation. The high value of this metric signified a bearish reading.
Source: Santiment
NFT Engagement Did Not Track
During the global value lockdown, NFT traders resisted buying and selling collectibles under the Convex Channel. According to Santiment, the highest value of NFT trading volume was $1.42 million on December 6.
This represented decrease of sales compared to the peak around September 29. At the time of writing, CVX price was rarely influenced, trading at $3.44, down 10.66% over the past seven days.
Source: 0 Santiment
