Convex Finance extends gains after facing short squeeze

Convex Finance (CVX), the DeFi token, extends its rally to double-digit gains and raises 26% on Monday, as seen on Binance. Data from Coinglass shows large volume liquidation of short positions, to the tune of $722,000. 

Colin Wu, cryptocurrency journalist and market analyst noted that CVX soared over 100% in the past 24 hours. 

CVX extends double-digit gains on Monday

Colin Wu reported that Convex Finance, the yield optimizer for protocols like Curve Finance, has noted a massive spike in the value of its CVX token, rallying over 100% in the past 24 hours. 

The DeFi token extended gains by 26% on Monday, as seen on Binance. The spot trading volume of the CVX/USDT pair reached nearly $32 million, a new high for intraday trade volume in the pair on Binance, on Sunday. 

Data from derivatives tracker Coinglass shows that over $722,000 in short positions were liquidated in the past 24 hours. The massive liquidation of short positions is referred to as a “short squeeze” by Wu, in his recent tweet.

Wu also reported that the trading volume of CVX/USDT perpetual contracts reached a high of $120 million on Bybit. 

Convex Finance Derivatives Data Analysis 

Santiment data shows that CVX supply on exchanges is up to 4.83 million, an over 12% increase in June. A rise in supply on exchanges signals an increase in selling pressure, and CVX price could decline. It remains to be seen whether the DeFi token will sustain its gains. 

CVX supply on exchanges vs. price 

The asset’s active address count surged on Monday, alongside the increase in CVX price, as seen in the Santiment chart below. The 42% increase in active addresses supports the DeFi token’s recent gains. 

CVX active addresses vs. price

CVX is trading at $3.983, at the time of writing.