Conflux Network 2025: Building PayFi Rails for Belt & Road Markets

By Team • Blockchain • December 16, 2025 at 01:23 PM • 64 min read • 71 views
Conflux Network 2025: Building PayFi Rails for Belt & Road Markets
Conflux Network 2025: Building PayFi Rails for Belt & Road Markets

Conflux Network 2025: Building PayFi Rails for Belt & Road Markets

Blockchain Analysis
Layer-1 Infrastructure
Published • December 2025

2025 Key Performance Metrics

Conflux 3.0 Throughput
15,000
Transactions Per Second
Total Staking TVL
832M
CFX (~$58M)
CFX Peak Rally (July)
+100%
$0.156 ? $0.278
Total Supply
5.73B
CFX (fully unlocked)
USDT0 Cumulative
>$50B
Cross-chain transfers
Burned (Zero Address)
573M
CFX permanently removed
Current CFX Price
$0.069
-75% from July peak
Market Cap
~$360M
Circulating: 5.16B CFX

2025 marked a pivotal year for Conflux Network — the only regulatory-compliant public blockchain in mainland China with its unique Tree-Graph consensus (PoW + PoS hybrid). The successful deployment of Conflux 3.0 with 15,000 TPS capability, combined with strategic Tether integration (USDT0/CNHT0) via LayerZero and enterprise partnerships with stc Bahrain, positioned Conflux as a serious contender for cross-border payment rails serving Belt and Road Initiative markets.

The announcement of AxCNH (offshore yuan stablecoin) in collaboration with AnchorX and Eastcompeace Technology triggered a 100%+ price surge in July, briefly returning CFX to $0.278 and a $1.1B market cap. However, subsequent correction to ~$0.069 by December and Bitvavo delisting highlight the gap between narrative momentum and sustainable adoption metrics. With 832M CFX staked ($58M TVL) and 573M CFX burned, network fundamentals remain solid despite price volatility.

2025 Key Events Timeline
JAN FEB MAR APR JUL AUG OCT NOV DEC 2026 Q1-Q2: FOUNDATION Partnerships & Infrastructure Q3: LAUNCH Conflux 3.0 & AxCNH Q4+: EXPANSION Tether & Cross-chain Partnership/Integration Major Milestone Current/Future Key Theme: Strategic pivot from NFT platform to PayFi infrastructure for Belt & Road markets Price: $0.156 (Jan) ? $0.278 peak (Jul) ? $0.07 (Dec) | Market Cap Peak: $1.1B

Executive Summary

Key Finding:

Conflux's unique regulatory positioning as the "only compliant public blockchain in mainland China" remains its primary competitive moat. Beijing's tacit approval for offshore yuan stablecoin experimentation, reported by South China Morning Post in October 2025, validates this strategic advantage while introducing significant policy dependency risk. The 75% drawdown from July highs suggests current prices may already discount considerable execution uncertainty.

Conflux 3.0: Technical Breakthrough

The August 2025 hardfork represented Conflux's most significant technical upgrade since inception. Implementing 8 Conflux Improvement Proposals (CIPs), the upgrade delivered enterprise-grade performance improvements:

CIP/Feature
Technical Improvement
Business Impact
Status
Feature: TreeGraph 3.0
Technical: Parallel transaction processing
Impact: 15,000 TPS throughput (5x increase)
Status: Live
Feature: CIP-7702
Technical: Set Code for EOA accounts
Impact: Multi-token gas, batch transactions, social recovery
Status: Live
Feature: CIP-156
Technical: PoS penalty reform
Impact: 6-month lock vs permanent slash
Status: Live
Feature: AI Integration
Technical: Pundi AI & Solidus AI Tech
Impact: On-chain AI agents, compliance automation
Status: Beta

Infrastructure metrics validated increased network utilization: BlockPi processed over 1.5 billion RPC requests from February to November, while Validation Cloud scaled from 1.1M to 15M monthly requests—a 14x increase indicating growing developer and application activity.

Stablecoin Strategy: Belt and Road Ambitions

Conflux's 2025 pivot centered on three flagship stablecoin initiatives targeting cross-border trade settlement:

AxCNH (Offshore Yuan)

  • Partners: AnchorX, Eastcompeace Technology (SZSE: 002017)
  • Regulatory: AFSA (Kazakhstan) approval, Singapore/Malaysia pilot Aug 2025
  • Target: ¥2-4 billion monthly settlements
  • Integration: TradeGo (Saudi Aramco, Bank of China, Sinochem)

USDT0 & CNHT0 (LayerZero)

  • Launch: November 12, 2025
  • Status: 1 of only 15 networks with direct Tether issuance
  • Volume: >$50B cumulative transfers, 415K+ transactions
  • Feature: Zero-fee cross-chain via Firefly Labs

PayFi Fund Commitment

Conflux Foundation allocated 500 million CFX (~$50M at November prices) plus an additional $5-10M in CFX incentives for DeFi protocol liquidity mining. Target: daily transaction volume exceeding ¥100 million. WallFreeX launched as first stablecoin-focused DEX with Uniswap V3 model and AxCNH/USDT pairs.

Enterprise Partnerships & Market Validation

Partner
Partnership Nature
Strategic Significance
Status
Partner: stc Bahrain
Nature: Network validator + Web3 Launchpad
Significance: First telecom validator; Bahrain Vision 2030
Status: Active
Partner: Ant Digital Technologies
Nature: RWA tokenization (green energy)
Significance: 596 battery-swap stations, ~$3M first issuance, 8% yield
Status: Live
Partner: IPB Ltd (HKEX: 00399)
Nature: Potential acquisition MOU (12-month)
Significance: Public market access; stock +240% on news
Status: Pending
Partner: Tether / LayerZero
Nature: USDT0/CNHT0 native issuance
Significance: Institutional-grade stablecoin infrastructure
Status: Live
Partner: TokenPocket
Nature: Wallet integration (30M+ users)
Significance: Distribution channel for stablecoin adoption
Status: Active

Risk Factors & Growth Catalysts

? Risk Factors

  • Regulatory uncertainty: "Tacit approval" can reverse with policy shifts or e-CNY priorities
  • Price volatility: $0.28 ? $0.07 in 5 months (-75%)
  • Western market retreat: Bitvavo delisting (Dec 22, 2025)
  • Competition: Alibaba deposit tokens threaten settlement dominance

? Growth Catalysts

  • Unique positioning: Only compliant public blockchain in China
  • Tether partnership: Direct USDT0 issuance (1 of 15 networks)
  • IPB acquisition: Potential HKEX listing access
  • Belt and Road: ¥2-4B monthly settlement target market
  • Technical superiority: 15,000 TPS, account abstraction ready

2026 Outlook & Predictions

Technical Roadmap

  • Conflux 4.0: Parallel EVM execution (CIP-142 evolution)
  • ZK Integration: Privacy compliance for financial settlements
  • Account Abstraction: EIP-4337 for mass user onboarding
  • AI Expansion: On-chain agents for automated DeFi

Stablecoin Expansion

  • AxHKD Launch: Q1-Q2 2026 official release
  • Geographic: Indonesia, Kazakhstan, UAE/Saudi Arabia
  • Volume Target: $100M+ monthly transaction volume
  • Integration: stc pay (200M+ customer base potential)
Catalyst
Probability
Impact if Realized
Timeline
Catalyst: IPB formal agreement
Probability: 60-70%
Impact: HKEX listing access, capital markets credibility
Timeline: Q1-Q2 2026
Catalyst: ¥1B monthly settlements
Probability: 40-50%
Impact: Validates PayFi narrative, sustainable gas demand
Timeline: H2 2026
Catalyst: Coinbase listing
Probability: 30-40%
Impact: Western market access, institutional legitimacy
Timeline: 2026
Catalyst: Chinese bank pilot
Probability: 25-35%
Impact: Game-changing regulatory milestone
Timeline: 2026+

2026 Price & TVL Projections

Bull Case: Successful stablecoin adoption driving $100-200M TVL, CFX price recovery to $0.15-0.25 range if Belt and Road settlements materialize at scale. IPB deal completion unlocks HKEX capital access.
Base Case: Steady ecosystem growth with $50-100M TVL, CFX trading $0.08-0.15 range. PayFi initiatives show traction but below target volumes. Technical development continues on schedule.
Bear Case: Regulatory reversal in China, IPB deal collapse, continued Western market retreat. TVL stagnates below $30M, CFX revisits $0.04-0.06 lows. e-CNY prioritization limits offshore stablecoin scope.

Bottom Line Assessment

Conflux Network's 2025 transformation from NFT platform to PayFi infrastructure represents a bold strategic pivot with significant upside potential but equally substantial execution risk. The technical achievements (15K TPS, Tether integration, enterprise validators) establish credible foundation for institutional adoption.

Investment Thesis: Conflux represents a unique asymmetric opportunity for investors seeking China exposure in the blockchain sector. The regulatory moat is real but fragile—success depends on Beijing's continued tacit approval of offshore stablecoin experimentation. The 75% drawdown from July highs suggests current prices may already discount significant execution risk.

Key Metric to Watch: Monthly stablecoin settlement volume through AxCNH and USDT0 will be the definitive measure of PayFi narrative validation. Target: ¥500M monthly by Q2 2026 to confirm sustainable adoption trajectory.

Sources

• Conflux Network Official Medium - Monthly Progress Reports (January-November 2025)

• South China Morning Post - "Beijing's tacit approval for offshore yuan stablecoins" (October 2025)

• HKEX - IPB Ltd. Voluntary Announcements (June-July 2025)

• CoinGecko, ConfluxScan - Network metrics and market data

• stc Bahrain, Tether, LayerZero Official Announcements

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve significant risk, and prices can be extremely volatile. The metrics and projections cited may not reflect current market conditions. Always conduct your own research and consult with qualified financial advisors before making investment decisions. Past performance does not guarantee future results.

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