What is CXT: Understanding the Concept and Applications of Contextual Technology

Covalent's Positioning and Significance

In 2024, Covalent (CXT) was introduced as a leading modular data infrastructure layer, aiming to address critical challenges in blockchain and AI, including verifiability, decentralized AI inference, data for AI agents, and long-term data availability.

As a pioneering platform for structured, verifiable blockchain data, Covalent plays a crucial role in empowering decentralized training and inference across AI, DeFi, and GameFi sectors.

As of 2025, Covalent has become a trusted data provider for over 3,000 organizations, offering seamless access to data from more than 225 blockchains. This article will delve into its technical architecture, market performance, and future potential.

Origins and Development History

Birth Background

Covalent was created in 2024 to solve the challenges of data verifiability and availability in the rapidly evolving blockchain and AI landscapes. It emerged during a period of increasing demand for reliable, decentralized data solutions in the Web3 space.

Covalent's launch brought new possibilities for organizations seeking to leverage blockchain data for AI, DeFi, and GameFi applications.

Important Milestones

• 2024: Mainnet launch, achieving extensive blockchain data coverage and verifiability.
• 2025: Introduction of the Ethereum Wayback Machine, a secure, decentralized resource for Ethereum's historical transaction data.
• 2025: Adoption by over 3,000 organizations across AI, DeFi, and GameFi sectors.

With support from its community and network operators, Covalent continues to optimize its technology, security, and real-world applications.

How Does Covalent Work?

Decentralized Control

Covalent operates on a decentralized network of computers (nodes) worldwide, free from control by any single entity. These nodes collaborate to provide and verify blockchain data, ensuring system transparency and resilience.

Blockchain Core

Covalent's infrastructure interacts with multiple blockchains, creating a comprehensive, verifiable data reservoir. This data is structured and made accessible through Covalent's API, allowing for seamless integration with various applications.

Ensuring Fairness

Covalent employs a unique system where CXT token stakers are rewarded for reliable data retrieval. This mechanism ensures the accuracy and availability of blockchain data across the network.

Secure Transactions

Covalent uses advanced cryptographic techniques to ensure data integrity:

• Data is verified across multiple sources
• The Ethereum Wayback Machine provides a secure, decentralized historical data resource

These mechanisms ensure data reliability and maintain a high level of data integrity across the network.

Covalent's Market Performance

Circulation Overview

As of November 21, 2025, Covalent's circulating supply is 999,998,390.9137917 tokens, with a total supply of 1,000,000,000 tokens.

Price Fluctuations

Covalent reached its all-time high of $0.16971 on December 6, 2024.
Its lowest price was $0.008215, occurring on November 21, 2025.
These fluctuations reflect market sentiment, adoption trends, and external factors.

Click to view the current CXT market price

On-Chain Metrics

• Daily Transaction Volume: $19,134.08692252 (indicating network activity)
• Active Addresses: 10,383 (reflecting user engagement)

Covalent Ecosystem Applications and Partnerships

Core Use Cases

Covalent's ecosystem supports various applications:

• Data Infrastructure: Providing structured, verifiable data for blockchain and AI applications.
• AI and Machine Learning: Empowering decentralized training and inference to mitigate risks of manipulated or biased AI models.
• Historical Data Access: Offering the Ethereum Wayback Machine for secure, decentralized access to Ethereum's historical transaction data.

Strategic Collaborations

Covalent has established partnerships with over 3,000 organizations across sectors like AI, DeFi, and GameFi. These collaborations enhance Covalent's technological capabilities and market influence, providing a solid foundation for ecosystem expansion.

Controversies and Challenges

Covalent faces the following challenges:

• Technical Hurdles: Ensuring data reliability and accessibility across 225+ blockchains.
• Regulatory Risks: Navigating the evolving regulatory landscape for blockchain data providers.
• Competitive Pressure: Staying ahead in the rapidly evolving blockchain data infrastructure market.

These issues drive ongoing discussions within the community and market, pushing Covalent towards continuous innovation.

Covalent Community and Social Media Atmosphere

Fan Enthusiasm

Covalent's community is vibrant, with support from thousands of organizations. The network's ability to provide data from over 225 blockchains has attracted significant attention.

On X (formerly Twitter), posts and hashtags related to Covalent generate interest, particularly when new partnerships or data integrations are announced.

Social Media Sentiment

On X, sentiment towards Covalent shows a mix of reactions:

• Supporters praise Covalent's comprehensive data infrastructure and its potential to revolutionize blockchain and AI applications.
• Critics may focus on challenges related to data accuracy or concerns about centralization in data provision.

Recent trends indicate growing interest in Covalent's role in the AI and blockchain intersection.

Hot Topics

X users discuss Covalent's potential in enhancing AI model training, improving blockchain data accessibility, and its impact on decentralized applications. These conversations highlight both Covalent's transformative potential and the challenges it faces in becoming a mainstream solution.

More Information Sources for Covalent

• Official Website: Visit Covalent's official website for features, use cases, and latest updates.
• X Updates: On X, Covalent uses the handle @Covalent_HQ, sharing updates on technical advancements, community events, and partnership news.

Covalent's Future Roadmap

• Ongoing: Expansion of blockchain support and data types available through the Covalent Network.
• Ecosystem Goals: Increase the number of organizations leveraging Covalent's data infrastructure.
• Long-term Vision: Become the standard for verifiable, decentralized data in blockchain and AI applications.

How to Participate in Covalent?

1. Purchase Options: Buy CXT on Gate.com
2. Storage Solutions: Use compatible wallets for secure storage of CXT tokens
3. Governance Participation: Stake CXT tokens to participate in network operations and governance
4. Ecosystem Building: Access Covalent's developer resources to build applications using their data infrastructure

Summary

Covalent is redefining blockchain data infrastructure, offering transparency, reliability, and efficiency in data retrieval across multiple blockchains. Its active community, rich resources, and strong market presence make it stand out in the cryptocurrency field. Despite facing challenges such as ensuring data accuracy and navigating regulatory landscapes, Covalent's innovative spirit and clear roadmap position it as a key player in the future of decentralized technologies and AI applications. Whether you're a newcomer or an experienced player, Covalent is worth watching and participating in.

FAQ

What does CXT mean?

CXT stands for Crypto X Token, a digital asset in the Web3 ecosystem designed for cross-chain transactions and decentralized finance applications.

What does CXT do?

CXT is a cryptocurrency that facilitates fast and secure transactions in the Web3 ecosystem. It aims to provide a decentralized platform for digital asset exchange and smart contract execution.

What does CXT Software do?

CXT Software provides blockchain solutions for secure and efficient cryptocurrency transactions and smart contract management.

What is the cost of CXT?

As of November 2025, CXT's price fluctuates around $0.15 to $0.20 per token, reflecting its market performance and adoption in the Web3 ecosystem.