3 reasons why Nexus Mutual (WNXM) price is holding steady in a volatile market
There are at all times going to be dangers concerned when 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 tens of millions of {dollars} value of tokens from BitMart, AscendEX and BadgerDAO alternate.
Nexus Mutual is a decentralized platform that enables buyers to safe insurance coverage protection in opposition to good contract exploits, and at this time, its token, WNXM, rallied by 38% whilst Bitcoin (BTC) and the broader crypto market proceed to appropriate.
Knowledge from Cointelegraph Markets Pro and TradingView reveals that after hitting a low of $46.59 on Dec. 13, WNXM’s value spiked 38% to a day by day excessive at $69.22 on Dec. 14.
Three causes for the sudden value reversal of WNXM embrace a sequence of latest partnerships and integrations with the Nexus Mutual protocol, an rising complete worth locked throughout the Nexus Mutual ecosystem, and the mission’s capability to efficiently present protection to victims of protocol exploits, which concerned the lack of funds.
Partnerships develop the Nexus Mutual ecosystem
New partnerships and protocol integration with varied decentralized finance (DeFi) platforms look like one of many driving elements 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 mission has additionally seen a gentle rise within the variety of cowl insurance policies bought, and throughout the final week, a couple of multi-million-dollar insurance policies had been opened on Curve, Anchor, Stake DAO and OlympusDAO.
As proven within the chart above, Nexus Mutual noticed a 53% enhance within the variety of insurance policies bought between Nov. 22 and Nov. 29, and the entire 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.
Complete worth locked is on the rise
The whole worth locked (TVL) on Nexus Mutual has additionally risen throughout the final six months, and knowledge from Defi Llama reveals the metric hitting a excessive of $780.58 million on Nov. 9. At the moment, the TVL on Nexus Mutual sits at $585.33 million, which is reflective of the sharp market-wide downturn that began final week.
Protocol customers have the choice of staking NXM tokens with initiatives they assume are safe because the monetary backing for the protection offered. In alternate for funding the protection, customers obtain a yield on their staked tokens and a present common APY of 4.96%.
In line with the information offered by the Nexus Mutual app, there’s at present $1.1 billion staked by way of the protocol, $25.5 million in protection bought and $12.7 million in rewards paid out.
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Glad clients 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 file of creating 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 because of 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.
Late Publish: I need to thank the crew at @NexusMutual for accepting my declare, I’m truly in tears proper now I’m so grateful, I didn’t even understand that I used to be impacted by the CREAM finance exploit till I attempted to withdraw my $BNT funds on CREAM. I not too long ago give up my job to go..
— Kar Ξ im $BNT (@Kareim30184380) December 8, 2021
VORTECS™ knowledge from Cointelegraph Markets Pro additionally started to detect a bullish outlook for WNXM on Dec. 11 previous to the current value 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, current value actions and Twitter exercise.
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 subsequent day.
The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you must conduct your personal analysis when making a choice.
