Convex Finance (CVX) has seen a continuous downtrend since the crash at the end of July, with its price steadily declining each day. This prolonged drawdown has resulted in CVX reaching a new all-time low. 

The persistent losses have left investors wary, leading to further pessimism about the token’s recovery prospects.

Convex Finance Investors Give Up

Investor sentiment around CVX has been overwhelmingly negative in recent months. As losses continued to mount over the last two months, confidence among holders began to erode. Many investors who initially believed in the token’s potential recovery are now skeptical about its ability to bounce back, especially in light of the consistent price declines.

This growing pessimism has worsened as CVX fails to establish a stable support level. The lack of bullish momentum and the token’s inability to reverse its downtrend has compounded concerns, leaving many holders uncertain about the future of their investments.

Read More: What Is Convex Finance (CVX)?

CVX’s overall macro momentum is also troubling. Historically, Convex Finance has maintained a correlation with Bitcoin, a trend that typically benefits altcoins. However, this correlation has proven to be a bearish signal for CVX.

Whenever the correlation between CVX and Bitcoin improves, the altcoin has experienced further price drops. The current situation is no different, with the increased correlation contributing to CVX’s decline to a new all-time low.

This bearish macro environment, coupled with the strong correlation to Bitcoin’s price movements, has placed additional downward pressure on CVX. As the cryptocurrency struggles to recover, it remains vulnerable to further losses unless significant bullish sentiment returns to the market.

CVX Price Prediction: What After a New Low

Over the last four days, CVX has experienced a 16% drop, creating intense bearish pressure. This resulted in the token hitting a new all-time low, with an intra-day decline of 6%, bringing CVX down to $1.72. At the time of writing, CVX is trading slightly higher at $1.86, just above the critical support level of $1.81.

CVX would need to reclaim the local support level of $1.97 to regain momentum. However, given the current bearish sentiment and ongoing selling pressure, this may prove not easy in the near term. Without a significant change in the market conditions, CVX could struggle to break above key resistance levels and face consolidation above $1.81.

Read More: What are Crypto Airdrops?

On a more optimistic note, if CVX manages to bounce off the $1.97 level, it could push back above $2.00. A successful breach of $2.12 would invalidate the bearish-neutral outlook and potentially trigger a recovery, although this remains a challenging scenario given the token’s recent performance.

Lamborghini and Animoca Brands’ division Motorverse are working together on a Web3 racing game in a joint resolve to shape the future of immersive brand engagement within the automotive industry.

The collaboration will bring Lamborghini’s iconic vehicles from the Fast ForWorld Web3 racing game to Animoca’s community of Web3 motorsport enthusiasts.

Lamborghini and Animoca Partner for Web3 Racing Game

This partnership will see Lamborghini and Animoca deliver an interactive platform dubbed Fast ForWorld. Within the space, fans, gamers, and owners will experiment, play, interact, and collect digital collectibles and receive rewards for engagement.

Further, players will be able to buy, sell, and drive Lamborghini’s iconic cars within a range of Motorverse games. Notably, Motorverse is an Animoca subsidiary that delivers a global ecosystem and community for digital vehicles, racing games, and motorsport culture. It brings forth a novel gaming experience with interoperable digital car collectibles.

“Super sports cars will be introduced as interoperable digital assets, accessible across multiple gaming platforms from launch,” the press release read.

Read more: Top 5 Web3 Use Cases: Where Web3 Is, Where It’s Going

This development also sets Fast ForWorld in line to become the carmaker’s hub for digital engagement and Web3 initiatives. It will serve as an ecosystem to bring fans and partners together. Noteworthy, the first version is due for launch on November 7, featuring a 3D wallet to store users’ digital items.

For Lamborghini, this move enhances its foray into the NFT (non-fungible token) space. Two years ago, the carmaker released a series of limited edition ‘World Tour’ themed NFTs. The luxury car manufacturer’s interest in the space came as early Bitcoin investors indulged in extravagant, prolific driving like Lamborghinis.

Nevertheless, the interest waned as Bitcoin millionaires’ focus shifted to real estate, reflecting a strategic approach to wealth management. The new partnership could reverse this trend, potentially revitalizing interest in the luxury brand.

“For every household that withdrew $5,000 from their crypto exchange account, one in 20 bought a house,” Jason Kotter, a finance professor at BYU, said at the time.

For Animoca, this step adds to its ongoing strides in the cryptocurrency and blockchain sectors. According to BeInCrypto, the company has made significant progress, including a collaboration with NFT marketplace Magic Eden.

As a leader in cryptocurrency gaming and the metaverse, Animoca also introduced its own token, MOCA Coin, while exploring a potential IPO in early 2025. The company is considering Hong Kong or the Middle East for its listing, regions with favorable cryptocurrency regulations.

Read more: 7 Best Cloud Gaming Services in 2024

These moves signal Animoca’s efforts toward shareholder value creation, following its delisting from the Australian Securities Exchange (ASX) due to governance concerns.

Franklin Templeton submitted a Bitcoin and Ethereum index ETF (exchange-traded fund) proposal to the US Securities and Exchange Commission (SEC).

If the securities regulator approves the application, it could see the global asset management giant combine and offer Bitcoin (BTC) and Ethereum (ETH) in a single fund.

Franklin Templeton Files for Bitcoin and Ethereum Index ETF

Franklin Templeton’s pending Bitcoin and Ethereum index ETF filing awaits SEC approval. According to the filing, it stands out as the first ETF to hold both BTC and Ether, positioning it as a distinctive asset in the digital currency ETF market.

If approved, Franklin Crypto Index ETF shares will be issued in blocks of 50,000, with the value tied to the net asset value (NAV) of the Bitcoin and Ether held by the fund. Importantly, the fund will not directly engage in staking or income-generating activities with its digital assets.

The index aims to offer indirect exposure to Bitcoin and Ethereum, mitigating the typical volatility associated with these cryptocurrencies. Instead, BTC and ETH will be held through a proxy, with the trust’s assets composed of Bitcoin, Ethereum, cash, and short-term financial instruments.

Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?

Notably, the index will have a maturity of less than three months, reflecting its performance based on a benchmark designed to track the largest digital assets — the CF Institutional Digital Asset Index — aligned with current capital markets.

BNY Mellon, the American investment banking firm, will act as the fund’s custodian and transfer agent, overseeing its operations. Coinbase Custody will manage the digital assets.

However, the SEC’s decision to approve or deny the application will depend on anti-fraud measures related to regulated futures markets. The agency typically approves crypto ETFs after ensuring robust protections against fraud and manipulation.

In response, the proposal highlights existing oversight agreements with regulated futures markets to guarantee the safe and transparent trading of the underlying assets.

Unlocking New Asset Management Capabilities

The prospective Bitcoin and Ethereum Index marks Franklin Templeton’s second major move into blockchain technology in just two days. As reported by BeInCrypto, the asset management giant recently launched the Franklin Onchain U.S. Government Money Fund (FOBXX) on the Layer-1 blockchain Aptos.

This tokenization initiative allows institutional investors to access the asset directly through their digital wallets, using Franklin Templeton’s blockchain-integrated Benji Investments platform and its BENJI token. The fund is also active on Stellar, Polygon, Arbitrum, and Avalanche blockchains.

In addition, Franklin Templeton remains heavily involved in the ETF market, offering institutional investors access to Bitcoin and Ethereum through its EZBC and EZET ETFs. The firm is also planning a mutual fund on Solana.

Read more: What is Tokenization on Blockchain?

These developments highlight growing interest in decentralized finance (DeFi) among traditional finance (TradFi) players. However, uncertainties around regulatory frameworks could hinder wider adoption of TradFi-to-DeFi integration.