Ethereum Conflux in China Goes Viral: 3.0 Upgrade Helps CFX Pump, but Are There Risks Hidden in On-Chain Data?

With the recent big pump in Conflux (CFX) prices and the upcoming 3.0 upgrade, the narrative of "China's Ethereum" is once again sweeping the crypto market. Does this highly anticipated public chain truly deliver on its promises of decentralization and high activity? This article takes you deep into the analysis of Conflux's technology, policy dividends, market trends, and the real picture behind the on-chain data.

The Rise of "China's Ethereum": Driven by Technology and Policy

Conflux Network was founded in 2018 and is the first platform in China to enter the global public chain first tier. It focuses on compliance, permissionless access, and emphasizes openness and Decentralization. Its partners include well-known institutions such as China Telecom, Tsinghua University, and Binance. Its core technology uses tree graph consensus and DAG structure, is compatible with Ethereum Virtual Machine (EVM), and promotes network governance and incentives through a dual-token economic model.

The Conflux 3.0 upgrade, set to launch in August 2025, will increase transaction speeds to 15,000 per second, far exceeding the current levels of Ethereum. In the future, an offshore RMB stablecoin will also be launched, and it will actively participate in the "Belt and Road" Web3 infrastructure, becoming a representative of blockchain under the support of Chinese policy.

On-chain Activities and Centralization Risks: Shadows Beneath the Glamorous Narrative

Despite the CFX price soaring over 190% in the past 30 days and the market cap surpassing 1.1 billion USD, the on-chain data reveals a different picture. According to block explorer data, Conflux's trading activity grew little last year, even falling below the average levels of 2022. More concerning is that nearly 80% of the total gas consumption comes from three accounts, indicating high centralization, whereas Ethereum's largest consumers account for less than 10%.

This phenomenon indicates that although the narrative is strong and policy support is present, Conflux's level of decentralization and user activity still have obvious shortcomings. Analysts point out that the current price is more driven by market speculation and technical expectations rather than on-chain fundamentals.

Application Ecology and Strategic Significance: From National Infrastructure to Cross-Border Finance

Conflux not only collaborates with giants like McDonald's China and Shanghai to promote metaverse projects, but also connects cross-chain bridges with multiple mainstream public chains to expand diverse applications such as DeFi, RWA, gaming, and digital copyright. Its blockchain has cumulatively processed 170 million transactions, serving over 25 million users, and is committed to creating hardware-level security guarantees (such as BSIM cards).

As part of China's Web3 national strategy, Conflux complies with regulatory requirements, receives policy support from Shanghai's "Metaverse New Track," and collaborates with institutions such as Fudan University to build a compliant financial model. These initiatives give it a unique advantage in the global blockchain competition.

Technical Upgrades and Market Prospects: Can 3.0 Narrow the Gap Between Narrative and Reality?

The Conflux 3.0 upgrade will bring faster TPS, stablecoin testing, and RWA integration, which is expected to address the current shortcoming of insufficient on-chain activity. The daily trading volume has reached 453.7 million USD, and the technical upgrade may further boost the CFX price. However, analysts warn that investors should be cautious of centralization risks, pay attention to on-chain real user behavior and ecosystem development, and avoid being misled by excessive narrative hype.

Conclusion

Conflux, as China's "Ethereum" narrative, demonstrates great potential in terms of policy, technology, and market. However, the issues of centralization and activity revealed by on-chain data cast a shadow over its future. Whether the 3.0 upgrade can truly achieve decentralization and stimulate user activity will determine whether Conflux can stand out in the global public chain competition. Investors should assess rationally, layout cautiously, seize opportunities while being vigilant to risks.