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Venus (XVS) value goals for $100 amid rising TVL and surge in DeFi customers

04/17/2021

The full worth locked in Venus soared to a file $11.1 billion as DeFi customers flock to the platform in quest of engaging yields.

Binance Good 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 selections 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.

XVS/USDT day by day chart. Supply: TradingView

Knowledge from Cointelegraph Markets and TradingView exhibits that the worth 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 value is buying and selling for $98.  

Merchants search secure 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. Other than with the ability to deposit collateral to earn a yield, customers also can 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 should 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 should buy the XVS token, which is the governance token for the Venus protocol and permits token holders to vote on adjustments to the ecosystem, comparable 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 embody 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 kind 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 exhibits 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.

Complete worth locked on Venus. Supply: Defistation

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

The circulate of institutional and retail buyers into the cryptocurrency ecosystem has picked up in 2021 and this pattern is more likely 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 seeking 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 increased yields and easy capital mobility.

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