Conflux (CFX/USD) has seen the dollar value of its contracts in key exchanges jump to the highest level in months. This open interest is one of the top reasons why Conflux price has been in a strong upward trend and currently sits at the highest level since September 21.
Data compiled by Coinglass, a leading data analytics company, shows that open interest in key exchanges has risen to over 310 million CFX. This was the highest the interest has been in months. In dollar terms, this open interest stands at about $125.4 million.
Most of the open interest is in Binance, the biggest crypto exchange in the world, which has 202.2 million CFX. It is followed by other top exchanges like OKX, Bybit, Bitget, and Huobi among others. However, as shown below, this open interest has dropped by 16% in the past 24 hours. Open interest in cryptocurrencies is an important metric because it shows the money flows into the market.
Additional data shows that the total Conflux liquidations have been balanced in the past few days. For example, on Monday, the longs liquidated in key exchanges were valued at over $109.8 million compared to $46.92 million short liquidations.
Two days before that, CFX short liquidations came were over $167.1 million compared to about $62.8 million longs. As shown below, the two have been a bit balanced in the past few days. In most periods, a crypto price tends to rise when the shorts liquidations are more than longs.
These metrics explain why Conflux price has been in a strong bullish trend in the past few weeks.CFX was trading at $0.40, which was a few points below the year-to-date high of $0.48. It has jumped by over 2,060% from the lowest point this year. This growth happened after Conflux inked a deal with China Telecom, a leading player in the US.
Source: https://invezz.com/news/2023/03/21/confluxs-cfx-futures-open-interest-spikes-to-125m/