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

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 traders to seek for cheaper 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 resolution for the decentralized finance (DeFi) ecosystem.

XVS/USDT each day chart. Supply: TradingView

Information from Cointelegraph Markets and TradingView reveals that the value of Venus catapulted 3,000% within the first two months of the yr, 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. Except for having the ability to deposit collateral to earn a yield, customers can even borrow towards 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 purchase 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 purchase the XVS token, which is the governance token for the Venus protocol and allows token holders to vote on modifications to the ecosystem, akin to including new collateral sorts or organizing product enhancements.

The listing of tokens supported by the protocol continues to develop, with most of the high tokens already out there 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 provided 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 most 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 good points.

Information from Defistation reveals that Venus is at present the top-ranked DeFi platform on the BSC by complete worth locked, with $7.eight billion in collateral at present 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 primary Ethereum competitor Curve, which at present has $6.47 billion in TVL.

The movement of institutional and retail traders into the cryptocurrency ecosystem has picked up in 2021 and this development 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 develop their userbase.

Venus is well-positioned to see additional development as folks more and more flee the legacy monetary system searching for larger yields and easy capital mobility.

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