3 reasons why Nexus Mutual (WNXM) price is holding steady in a volatile market

189
SHARES
1.5k
VIEWS


There may be all the time going to be dangers concerned with interacting with cryptocurrencies and up to date proof of this may be seen over the previous few weeks after savvy hackers managed to abscond with hundreds of thousands of {dollars} value of tokens from BitmartAscendEX and BadgerDAO alternate. 

Nexus Mutual is a decentralized platform that permits buyers to safe insurance coverage protection in opposition to sensible contract exploits and in the present day the altcoin rallied by 38% whilst Bitcoin and the broader crypto market proceed to appropriate.

Related articles

Information from Cointelegraph Markets Pro and TradingView reveals that after hitting a low of $46.59 on Dec. 13, the worth of the protocols native WNXM token spiked 38% to a each day excessive at $69.22 on Dec. 14.

WNXM/USDT 4-hour chart. Supply: TradingView

Three causes for the sudden worth reversal of WNXM embrace a sequence of latest partnerships and integrations with the Nexus Mutual protocol, an growing complete worth locked inside the Nexus Mutual ecosystem and the undertaking’s capacity to efficiently present cowl to victims of protocol exploits which concerned the lack of funds.

Partnerships broaden the Nexus Mutual ecosystem

New partnerships and protocol integration with numerous DeFi platforms look like one of many driving components behind WNXM’s present restoration.

Not too long ago, the builders behind Nexus Mutual held neighborhood calls with mStable, Balancer Labs, Alpaca Finance, Notional Finance and PoolTogether.

The undertaking has additionally seen a gentle rise within the variety of cowl insurance policies bought, and inside the final week just a few multi-million insurance policies have been opened at Curve, Anchor, Stake DAO and OlympusDAO.

Week over week will increase in Nexus Mutual insurance policies. Supply: Twitter

As proven within the chart above, Nexus Mutual noticed a 53% enhance within the variety of insurance policies offered between Nov. 22 and Nov. 29, and the full worth of the protection provided elevated by 121%. The rise in utilization resulted in a 125.8% enhance within the premiums earned by the protocol.

Whole worth locked is on the rise

The whole worth locked on Nexus Mutual has additionally risen inside the final 6 months and knowledge from Defi Llama reveals the metric hitting a excessive of $780.58 million on Nov. 9. At present, the TVL on Nexus Mutual sits at $585.33 million, which is reflective of the sharp market-wide downturn which began final week.

Whole worth locked on Nexus Mutual. Supply: Defi Llama

Protocol customers have the choice of staking NXM tokens with tasks they assume are safe because the monetary backing for the protection supplied. In alternate for funding the protection, customers obtain a yield on their staked tokens, and a present common APY of 4.96%.

In keeping with the info supplied by Nexus Mutual app, there may be presently $1.1 billion staked by means of the protocol,   $25.5 million in protection bought and $12.7 million in rewards paid out.

Associated: ‘DeFi is the most dangerous part of the crypto world,’ says Senator Elizabeth Warren

Glad prospects are good for enterprise

A 3rd cause for the rising energy of Nexus Mutual and the worth appreciation of WNXM has been the confirmed observe document of constructing victims entire after they lose cash to a wise contract exploit or protocol hack.

One of many DeFi platforms that had Nexus Mutual protection previous to an exploit of $100 million was Cream Finance, a protocol that has suffered back-to-back losses in 2021 attributable to hacks and flash mortgage exploits.

Fortunately for individuals who had bought protection previous to the exploit, the Nexus Mutual neighborhood has paid out a number of claims for misplaced funds.

VORTECS™ knowledge from Cointelegraph Markets Pro additionally started to detect a bullish outlook for WNXM on Dec. 11, previous to the latest worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of information factors together with market sentiment, buying and selling quantity, latest worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. WNXM worth. Supply: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Rating for WNXM climbed into the inexperienced zone on Dec. 11 and reached a excessive of 77 round 57 hours earlier than the worth elevated 49% over the following day.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you must conduct your individual analysis when making a choice.