CFX big pump frenzy: With stablecoins from Hong Kong and support from the national team, will Conflux become the next phenomenon-level public chain?

Recently, Conflux (CFX) has been performing impressively in the crypto assets market, with its price chart showing a significant upward trend, a surge in 24-hour trading volume, and triggering a large number of short positions getting liquidated. The market's attention on CFX is at an unprecedented high, with some voices predicting it could become the "next 100x coin." This wave of pump is not coincidental, but rather the result of multiple favourable information stacking up on the technical, policy, and funding levels. This article will delve into the deeper reasons behind the rise of CFX and explore its potential and challenges.

Today (29th) in the European morning session, CFX is currently reported at 0.2579 USD, with a daily pump that once exceeded 40%, followed by a slight decline, demonstrating amazing resilience.

(Source: Gate)

1. Technological Innovation: Tree Graph 3.0 Builds the Web3 "Highway"

One of the core drivers behind the surge in Conflux prices is a significant breakthrough in its underlying technology—the upcoming launch of Tree Graph Public Chain 3.0. The Tree Graph 3.0, expected to be released in August, will greatly enhance network performance:

Transaction processing capacity (TPS) significantly improved: from the current 3,000 to 15,000, which means that the Conflux network can process far more transactions per second than many existing blockchains, even surpassing the efficiency of traditional payment systems.

AI and Smart Contracts Deep Integration: Tree Diagram 3.0 will empower smart contracts with the ability to directly invoke AI to analyze data and execute tasks automatically. This will bring revolutionary changes to blockchain applications, such as automating risk assessment and on-chain claims in the insurance sector, significantly enhancing efficiency and transparency.

Network Stability and Decentralization Enhancement: This upgrade also optimizes the storage architecture, shortening the transaction confirmation time to 26 seconds and expanding the number of nodes to 10,000. This not only enhances the network's stability and resistance to attacks but also further strengthens its decentralized features.

Historical experience shows that significant technological upgrades of underlying public chains often lead to a reassessment of the value of their native tokens. The launch of Tree Graph 3.0 is expected to attract more DeFi projects to migrate to the Conflux ecosystem, bringing new growth momentum.

II. Stablecoin Strategy: The Prospects of Hong Kong Licenses and Offshore RMB Settlements

Conflux's strategic layout in the stablecoin field is another major highlight. With Hong Kong's gradual improvement of the stablecoin regulatory framework, Conflux is actively participating and has partnered with AnchorX to launch the Hong Kong Dollar stablecoin AxHKD, which is planned to officially go live in the third quarter of 2025. AxHKD adopts a "HKD-Gold-Digital Asset" triple reserve model, aiming to provide a high level of security.

More strategically significant is the blockchain SIM card (BSIM) developed by Conflux in cooperation with China Telecom, which has been piloted in Shanghai and is planned to be promoted to countries along the "Belt and Road" initiative. The BSIM card integrates hardware wallets and digital identity verification into mobile phones, providing the infrastructure for future blockchain-based cross-border payments and trade settlements.

The Hong Kong Monetary Authority has set strict thresholds for stablecoin license applications, including a paid-up capital of HKD 25 million and stringent anti-money laundering and cybersecurity reviews. As the only compliant public chain in China, Conflux has a natural advantage in policy compliance. If AxHKD successfully obtains official recognition from Hong Kong and is integrated with the application scenarios of the BSIM card, it will significantly expand the trading volume and application scope of CFX, bringing a substantial increase in its value.

3. Policy Support: The Infrastructure Role of National-Level Strategic Layout

Conflux has a strong background and was founded by the "Yao Class" team from Tsinghua University, led by Academician Yao Qizhi, whose technical strength is highly recognized. More importantly, Conflux has been deeply involved in several national-level strategic projects, including the Shanghai cross-border settlement pilot and the national power grid asset blockchain initiative. Its collaboration with China Telecom on the BSIM card is seen as a key infrastructure for the "Digital Silk Road."

Recent news indicates that Conflux may participate in the issuance of offshore RMB stablecoins. If this plan comes to fruition, CFX will play a role similar to "on-chain UnionPay" in cross-border payments and trade settlements, reaching an unprecedented strategic position. This level of national policy support is rare in the entire crypto assets field, providing solid assurance for Conflux's long-term development.

4. Capital Inflow: Market Sentiment and Institutional Layout

Conflux has recently seen unusually active capital flow, with a 24-hour Trading Volume exceeding 1.5 billion USD. The long-short ratio across major exchanges and the positions of top traders both indicate a strong bullish sentiment. In particular, the short positions Get Liquidated data reflects the robust buying pressure on CFX in the market.

Institutional investors have also started to quietly enter the market. Analysis indicates that the market capitalization of CFX is currently relatively low, presenting significant valuation potential compared to competitors like Solana and Stellar. Additionally, Conflux has recently launched an ecological incentive program of over 2.4 billion CFX, aimed at attracting more developers and project parties to settle in, and this influx of funds is expected to further drive the coin price up.

5. Risk Warning: Potential Challenges Behind the Surge

Although CFX shows great potential, investors still need to be wary of the accompanying risks:

Security Incident: The 2024 DEXX wallet private key leak incident reminds us that the risks of custodial wallets still exist.

Market Volatility: The price of CFX is heavily influenced by overall market sentiment, and there have been cases in the past where the price dropped after a mainnet upgrade.

Intense Competition: Public chains like Solana and Stellar are also actively competing for the cross-border payment market, and the competitive pressure should not be underestimated.

Investors should carefully assess risks, manage their positions well, and avoid being overly influenced by market sentiment.

Conclusion: The vast ocean of Conflux has just begun

The recent surge of Conflux is the result of a combination of technological innovation, policy support, and capital influx. It is not only a public chain project with strong technical capabilities, but also plays a key infrastructure role in national-level strategies, especially in promoting the internationalization of the Renminbi and the construction of the "Digital Silk Road." With the launch of Tree Graph 3.0 in August, as well as the future progress of AxHKD stablecoin and offshore Renminbi stablecoin, CFX is expected to achieve new breakthroughs in TPS, AI integration, and stablecoin applications, becoming the next phenomenon in Crypto Assets.

Although investing carries risks, for investors optimistic about Web3 infrastructure and the development of China's digital economy, Conflux may be opening up its vast sea of stars.