Conflux reports 16% losses following Bitcoin L2 announcement

Following a Jan. 18 announcement of a new L2 network that would run on top of the Conflux chain, CoinMarketCap reported that CFX saw 16.7% losses, currently at $0.1864.

On Jan. 18, Conflux (CFX), a public layer-1 blockchain that was made to power decentralized applications (dApps), announced the launch of the EVM-Compatible Bitcoin L2 solution, which triggered an 8% surge. At the time, the BTC L2 was said to build off the hype surrounding inscriptions, ordinals, BRC-20 tokens, and the SEC’s approval of U.S. spot BTC ETFs, which was said to attract considerable capital.

However, Jan. 18 reports highlighted that BTC had experienced another drop to $41,349 from previous highs of $49,000. Negative market sentiment in the BTC market has since influenced spillover onto the altcoin charts, which has seen minimal gains, according to Jan. 19 reports on CoinGecko.

On the weekly chart, the price of CFX is only down 2.6%, slightly outperforming the market, which had experienced losses of 2.8% in the last 7 days.

Compared to other DWF Labs Portfolio cryptocurrencies, CFX continues to outperform its peers, who are experiencing a 4.8% decrease.