According to data from Dune Analytics, of the 16 unlocks scheduled to release 52.2 million CVX tokens locked by vote, only one remains.
On June 30, due to limited liquidity issues that prevented its users from exchanging CVX tokens for Ethereum (ETH), Convex Finance, a Curve Finance-based DeFi protocol, began unlocking some of its voting-locked tokens. However, investors feared that the planned unlocks could negatively affect the price of CVX.
Have they been proven right?
The price per CLC has touched a series of ups and downs in recent months. According to data from CoinMarketCap, the crypto asset changed hands at $3.6 when the unlocking process began.
By the fourth unlock on July 21, the price per CVX had risen 128%. The price of CVX fell momentarily between June 23 and 27. However, at the end of July, it returned to the price of $8.
As the rest of the market corrected after the July rally, the CVX price also declined at the start of the new trading month (August). Within the 31-day period, the asset price fell from a high of $8 to close the month at $5.11.
Also, as the unlock continued in September, the price drop slowed. According to CoinMarketCap, the CVX price only fell 3% in the 30-day period.
With its price in a better position than when the unlock began, CVX changed hands at $5.45 at the time of writing. Its price has grown by 51% since the first unlock on June 30.
According to data from on-chain analytics platform Santiment, roughly a month into the unlocking process, a significant number of CLC holders made a profit as the asset’s market value (MVRV) rallied to post a positive value of 27.11% as of July 28.
However, after this high, the metric started in a downtrend. At press time, CVX’s MVRV was pegged at -4.276%, indicating that some of its holders are currently losing. These could be investors who went into FOMO when they saw the rise in the price of the asset.
Taking advantage of the uptick in prices, key stakeholders in the CLC network have begun to pack their bags in recent months. Santiment data showed that the number of whales holding CLC has increased since unlocking began.
While, on average, everything seems “fine” with CLC, a look at the asset’s average dollar investment age (MDIA) showed that there was gridlock.
Therefore, any investor looking to mimic the token should be aware that the continued tranche of the MDIA could hinder any significant rise in its price for the time being.