Conflux Reports Losses Following Bitcoin L2 Announcement
Following a recent announcement of a new Layer 2 (L2) network running on top of the Conflux chain, Conflux (CFX) has experienced losses. Currently priced at $0.1864, CFX saw a decline of 16.7% according to CoinMarketCap.
The Launch of EVM-Compatible Bitcoin L2 Solution
On January 18, Conflux, a public layer-1 blockchain designed for decentralized applications (dApps), announced the launch of the EVM-Compatible Bitcoin L2 solution. This announcement led to an 8% surge in CFX. The BTC L2 was expected to capitalize on the excitement surrounding inscriptions, ordinals, BRC-20 tokens, and the SEC’s approval of U.S. spot BTC ETFs, attracting significant capital.
Bitcoin Market Sentiment Affects Altcoin Charts
However, reports on January 18 revealed that BTC had dropped from its previous high of $49,000 to $41,349. This negative market sentiment in the BTC market has spilled over onto altcoin charts, resulting in minimal gains according to CoinGecko’s report on January 19.
CFX Performance Amidst Market Decline
Despite the overall market decline of 2.8% in the last 7 days, CFX has only experienced a 2.6% decrease on its weekly chart. In comparison to other cryptocurrencies in the DWF Labs Portfolio, CFX continues to outperform its peers with a decrease of 4.8%.
Hot Take: Conflux Faces Challenges Amidst Bitcoin L2 Announcement
The recent announcement of the EVM-Compatible Bitcoin L2 solution by Conflux has resulted in losses for CFX. While the launch initially led to a surge, the negative market sentiment surrounding BTC’s drop has affected CFX and other altcoins. However, despite the market decline, CFX has outperformed its peers in the DWF Labs Portfolio. It remains to be seen how Conflux will navigate these challenges and whether they can regain momentum in the market.
By
By
By
By
By
By