Conflux Network’s native token, CFX, jumped 42.7% over the past 24 hours to $0.2143, leading the day’s crypto gainers amid a wave of bullish developments centered on China’s push for a yuan-backed stablecoin.
In parallel, Conflux has seen a sharp uptick in developer activity ahead of its upcoming Conflux 3.0 upgrade, scheduled for July 30. Monthly developer contributions have risen 22%, further stoking investor enthusiasm.
Market data shows a sharp short squeeze contributed to the surge, with over $11 million in short positions liquidated and open interest climbing 140%. Meanwhile, tokenomics played a key role, with 76 million CFX tokens burned and more than 500 million staked since May—contributing to a supply reduction of roughly 11%.
Technically, the rally pushed CFX’s relative strength index (RSI) to 93.2, marking its most overbought level in months. The MACD remains bullish, with upside targets extending to $0.289 based on Fibonacci projections. However, traders are watching for potential resistance around $0.25 and profit-taking following the network upgrade.
The rally followed Conflux’s announcement of a cross-border digital yuan pilot in collaboration with fintech firm AnchorX and Eastcompeace Technology, a Shenzhen-listed entity. The initiative, unveiled during a Shanghai government-backed conference, aims to establish an offshore RMB stablecoin tailored for Belt and Road Initiative (BRI) economies including Singapore, Indonesia, Malaysia, and Kazakhstan.
The planned stablecoin will be used to settle trade and facilitate cross-border payments, aligning with China’s broader strategy to internationalize the yuan while maintaining regulatory oversight.
This comes as Chinese policymakers signal growing urgency in developing sovereign-backed stablecoin alternatives, with former Deputy Finance Minister Zhu Guangyao recently urging their integration into national financial frameworks. Zhu described U.S. dollar stablecoins as tools of American monetary dominance.
Although China maintains a formal ban on cryptocurrencies, recent developments suggest a softening stance on blockchain-powered financial instruments. Shanghai officials’ involvement in the pilot project hints at a potential shift in national digital asset policy, with stablecoins emerging as a strategic priority in China’s global fintech ambitions.
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