Sunday, August 1, 2021

Venus (XVS) price aims for $100 amid rising TVL and surge in DeFi users

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Binance Sensible Chain (BSC) has quickly risen to prominence in 2021 as excessive transaction prices and congestion on the Ethereum (ETH) community led smaller-size buyers to seek for cheaper alternate options.

One of many high decisions to earn a yield on the BSC is Venus (XVS), an algorithmic cash market and artificial stablecoin protocol that gives a lending and borrowing answer for the decentralized finance (DeFi) ecosystem.

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XVS/USDT each day chart. Supply: TradingView

Knowledge from Cointelegraph Markets and TradingView reveals that the value of Venus catapulted 3,000% within the first two months of the 12 months, going from a low of $3.20 on Jan. 1 to an all-time excessive of $103 on Feb. 19 earlier than correcting to $35 on March 25. On the time of writing, XVS worth is buying and selling for $98.  

Merchants search steady yield with much less danger

When evaluating totally different protocols throughout blockchain networks, the highest competitor for Venus on the Ethereum community is Maker (MKR) and its DAI stablecoin. Apart from with the ability to deposit collateral to earn a yield, customers can even borrow in opposition to their collateral by minting the VAI stablecoin, an artificial BEP-20 token that’s pegged to the worth of 1 U.S. greenback.

Customers preferring to carry a good portion of their portfolio in a stablecoin can buy VAI and deposit it within the Venus vault to earn a 19.91% yield on the time of writing.

These wishing to get extra concerned locally can buy the XVS token, which is the governance token for the Venus protocol and permits token holders to vote on modifications to the ecosystem, corresponding to including new collateral sorts or organizing product enhancements.

The listing of tokens supported by the protocol continues to broaden, with lots of the high tokens already obtainable for customers to earn a yield. Presently supported cash embrace Ethereum, Binance Coin (BNB), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT), XRP and Cardano (ADA).

Yields supplied by the protocol are on common between 4% and 10%, with earnings paid out in the identical type because the collateral staked. Whereas the quantity earned on Venus is decrease than on lots of the yield farming choices, customers don’t want to fret about impermanent losses or the worth of the protocol token falling and erasing their positive aspects.

Knowledge from Defistation reveals that Venus is presently the top-ranked DeFi platform on the BSC by complete worth locked, with $7.8 billion in collateral presently deposited on the protocol.

Whole worth locked on Venus. Supply: Defistation

When in comparison with DeFi platforms throughout all blockchain networks, Venus ranks eighth behind its fundamental Ethereum competitor Curve, which presently has $6.47 billion in TVL.

The stream of institutional and retail buyers into the cryptocurrency ecosystem has picked up in 2021 and this pattern is prone to proceed for the foreseeable future.

Regardless of this week’s Berlin improve to the Ethereum community, charges are nonetheless excessive and this leaves the door open to competing chains and protocols trying to broaden their userbase.

Venus is well-positioned to see additional progress as individuals more and more flee the legacy monetary system in quest of greater yields and easy capital mobility.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer includes danger, you must conduct your personal analysis when making a call.