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Convex Finance (CVX) is a unique DeFi system developed on top of Curve Finance, a stablecoin exchange. Convex pays additional DeFi yields to Curve liquidity providers and CRV stakers at its core.
Convex's aggressive drive to lock up as much Curve liquidity as possible has pitted the protocol against Yearn Finance in a DeFi war. Both projects require as many CRV tokens as possible in order to keep raising interest rates for Curve LPs.
Curve Finance has surpassed Coinbase as the world's largest decentralized exchange in terms of total value locked ($8.76 billion). As a result, any DeFi protocol that absorbs that liquidity into its own protocol will be massive by default, which is why Yearn and Convex are competing.
To find out, keep reading to understand more about Convex Finance (CVX) Price Prediction 2021, CVX price prediction 2022, and until 2025.
What Is Convex Finance?
Crypto asset holders can earn passive income by providing liquidity to a decentralized automated market maker through decentralized finance (AMM).
Curve Finance, for example, is a decentralized exchange (DEX) that uses an AMM in its protocol to enable permissionless digital asset exchange. Anyone can lock up their crypto assets and earn fees by adding their native CRV token to various liquidity pools.
Convex Finance is a platform created by an anonymous group of developers that allows Curve Finance's liquidity providers to earn increased rewards. They do not need to lock their CRV tokens. There are no withdrawal fees and just minor performance fees on the platform.
Staking and providing liquidity are two essential ways for the protocol to create more benefits.
The Convex protocol allows users to deposit Curve's LP tokens. Because other users have also locked their CRV tokens with Convex, these liquidity providers are rewarded on Curve with increased CRV incentives.
If you stake CRV tokens on Curve directly, you will receive veCRV, which pays you by sharing a percentage of the Curve platform's trading costs.
Let’s see CVX coin price prediction for the upcoming years.
Price Analysis of the CVX token
Flashback: Fundamental analysis of CVX
With a market cap of $386,291,194, CVX is now ranked #231 on CoinMarketCap. There are 28,055,219 CVX coins in circulation, with a total supply of 100,000,000 CVX coins.
The sections below outline the CVX coin price prediction for the next five years.
Convex Finance (CVX) Price Prediction 2021
CVX price prediction 2021 provides that $24.31 will be the price of CVX crypto during November 2021, further declining to $19.77.
Convex Finance (CVX) Price Prediction 2022
According to CVX Price Prediction 2022, the CVX coin will begin the year at $28.86 before falling to $22.3 in October 2022 and then again rising to $26.64 in December 2022.
Convex Finance (CVX) Price Prediction 2023
During March 2023, the CVX token will be worth $34.41 and then rise to $35.49 in December 2023.
Convex Finance (CVX) Price Prediction 2024
During January 2024, the CVX coin will reach $31.98, representing a 115.38% change in Convex Finance's price.
At the end of the year, the price of the CVX crypto will be $32.13. The highest price of the coin during 2024 will be $43.72 (during March).
Convex Finance (CVX) Price Prediction 2025
The highest return that traders can earn from their CVX holdings will be $51.37 per CVX during August 2025. However, the coin's value will again drop to $37.28 during December 2025.
Convex Finance (CVX) Price Prediction: Market Sentiment
The price analysis of CVX coin by various media outlets is listed in the section below:
Wallet Investor
Based on Wallet Investor's forecasts, a long-term increase in the CVX coin's price is expected, and the coin maybe $76.55.
Digital Coin Price
The CVX coin will reach $19 in December 2021, at least $30 in 2024, and $35 in 2025. The coin’s value will keep fluctuating between $20 and $40 during the next four years.
Gov Capital
The average price of the CVX coin will be $47.94 in December 2023, further dropping to $43.59 in December 2025.
Coins Arbitrage Bot
According to Coin Arbitrage Bot, the Convex Finance price will be approximately $28.7 by the end of 2022, and it may easily reach $46.4 by the end of 2023.
Coins Kid
For May 2022 and February 2023, the average Convex Finance price is $19.24 and $33.17, respectively. The CVX coin is valued at $144.89 in December 2025.
Our Convex Finance (CVX) Price Prediction
Convex Finance is an innovative platform because all Curve Finance pools are made up of assets of almost equal value, such as stablecoins, providing liquidity to them allows consumers to reduce the danger of temporary loss.
The Curve is rather complicated and daunting to use for a DeFi newbie, despite its benefits. Because it addresses this issue, Convex Finance has recently increased in prominence.
Convex makes it simple to optimize Curve's liquidity provisioning and increases CRV payouts by accomplishing large-scale liquidity mining.
So, should you consider buying the CVX token?
CVX token represents quite a lot of fluctuations over the next few years. Due to high volatility, it won't cross the $20 level this year and is expected to reach $40 by 2025.
Still, please DYOR before making any trading in virtual assets.
Conclusion
Even though the initiative is just a few months old, it has already received enthusiastic support from several crypto community members.
Convex Finance is an interesting DeFi project with a lot of potential as a yield optimizer for the Curve protocol. Stablecoins are ideal for liquidity providers to minimize temporary losses because they are significantly less volatile than other cryptocurrencies.
Convex coin (CVX) is a utility token that allows users to participate in Convex platform fees. Stake your CVX to acquire cvxCRV tokens and earn Convex fees. The more Convex's platform revenue, the more value is provided to cvxCRV holders.
According to social media platform price projections, the CVX coin would be worth at least $17.78 by the end of 2021, according to Convex Finance price prediction 2021. Furthermore, the CVX price forecast is reasonably bullish, with the currency anticipated to reach $37 in the next four years.
Cryptoknowmics readers are encouraged to conduct their own research before making investment decisions. This article is not intended to be treated as trading advice. Before committing to an investment, each investor should conduct thorough research and familiarise themselves with local jurisdictions.
We are not responsible for any decisions made as a result of reading this material, and we strongly advise you to do your own research before acting. Despite our best efforts to ensure that the information contained above is factual and up to date, omissions, errors, or typos may occur.