Only one of the 16 unlocks scheduled to free up vote-locked 52.2 million CVX tokens is complete, according to Dune Analytics’ data.
Convex Finance, a DeFi protocol based on Curve Finance, started unlocking some of its vote-locked tokens on June 30 due to limited liquidity issues that prevented its users from exchanging CVX tokens for Ethereum (ETH). However, investors were concerned that the planned unlocks might lower CVX’s value.
Have they been proven right?
The shot
In the past few months, the price per CVX has fluctuated between highs and lows.When the unlocking process started, the cryptocurrency asset was traded for $3.6, according to CoinMarketCap data.
The price per CVX had risen by 128% by the fourth unlock, which occurred on July 21. Between June 23 and June 27, CVX’s price briefly decreased.However, by the end of July, it had fallen back below $8.
After the rally in July, the rest of the market experienced a correction, and CVX’s price also fell at the beginning of the new trading month (August). The asset’s price decreased from its peak of $8 over the course of the 31-day period to $5.11 at the end of the month.
In addition, the price decline slowed in September as the unlocking process continued. CoinMarketCap indicates that CVX’s price only decreased by 3% over the course of the 30-day period.
CVX traded hands at $5.45 as of this writing, with its price in better shape than when the unlocking began. Since the first unlock on June 30, its price has increased by 51%.
The chaser
A significant number of CVX holders made money about a month into the unlocking process, as the asset’s market-value-to-realized-value (MVRV) increased to a positive value of 27.11 percent on July 28th, according to data from the on-chain analytics platform Santiment.
However, the metric began a downward trend after this high. CVX’s MVRV was estimated at -4.276% at press time, indicating that some of its holders are currently holding at a loss. This could be investors who experienced FOMO when they saw the asset’s price rise.
Over the past few months, key stakeholders on the CVX network began packing their bags in response to the price rise. Since unlocking began, the number of whales holding CVX has increased, according to Santiment data.
Even though CVX looks generally “good,” a look at the asset’s Mean Dollar Invested Age (MDIA) revealed network stagnation.
As a result, any investor who wants to get in on the token’s price should be aware that the MDIA’s continued stretch may prevent a significant price rise for the time being.
