3 reasons why Nexus Mutual (WNXM) prices remain stable in a turbulent market
There are always risks in interacting with cryptocurrencies, and recent evidence can be seen in the past few weeks after savvy hackers managed to escape millions of dollars worth of tokens from cryptocurrencies. Bitmart, Shengteng EX and BadgerDAO exchange.
Nexus Mutual is a decentralized platform that allows investors to obtain insurance protection against smart contract vulnerabilities. Today, even as Bitcoin and the broader cryptocurrency market continue to correct, altcoins have risen by 38%.
Data from Cointelegraph Markets Pro and Transaction view It shows that after hitting a low of US$46.59 on December 13, the price of the protocol’s native WNXM token surged 38% to a daily high of US$69.22 on December 14.
The three reasons for the sudden price reversal of WNXM include a series of new partnerships and integrations with the Nexus Mutual agreement, the increasing total value locked in the Nexus Mutual ecosystem, and the project’s ability to successfully provide protection to victims of the agreement’s loopholes. The person involved in the loss of funds.
Partnership expands Nexus Mutual ecosystem
New partnerships and agreement integration with various DeFi platforms seem to be one of the driving factors behind WNXM’s current resurgence.
Recently, the developers behind Nexus Mutual held a community conference call with mStable, Balancer Labs, Alpaca Finance, Notional Finance, and PoolTogether.
The number of insurance policies purchased by this project has also steadily increased. Last week, millions of insurance policies were opened on Curve, Anchor, Stake DAO and OlympusDAO.
As shown in the figure above, the number of insurance policies sold by Nexus Mutual between November 22 and November 29 increased by 53%, and the total value of insurance provided increased by 121%. The increase in usage led to an increase in the premiums earned by the agreement by 125.8%.
Locked total value is on the rise
The total value locked by Nexus Mutual has also increased in the past 6 months. Data from Defi Llama shows that this indicator reached a high of US$780.58 million on November 9. Currently, Nexus Mutual’s TVL is $585.3 million, which reflects the sharp decline in the entire market that began last week.
Agreement users can choose to mortgage NXM tokens with projects they deem safe as financial support for the coverage provided. In exchange for funding the coverage area, users receive the proceeds of their mortgage tokens, and the current average APY is 4.96%.
According to the data provided by the Nexus Mutual application, US$1.1 billion has been pledged through the agreement, US$25.5 million in insurance has been purchased, and US$12.7 million in rewards have been paid.
Satisfied customers are good for business
The third reason for the increasing strength of Nexus Mutual and the rising price of WNXM is that after victims lose money due to smart contract vulnerabilities or protocol hacking, they have proven that they can make the victims intact.
One of the previous DeFi platforms covered by Nexus Mutual Exploited 100 million U.S. dollars It is Cream Finance, which suffered back-to-back losses due to hacking and flash loan attacks in 2021.
Fortunately, for those who bought insurance before the exploit, the Nexus Mutual community has paid multiple claims for the lost funds.
Late post: I want to thank the team @NexusMutual Accepting my claim, I’m really in tears now. I’m so grateful that I didn’t even realize that I was affected by the CREAM financial breach until I tried to withdraw my $BNT Funds on CREAM. I recently quit my job and went to…
— Kar im $BNT (@Kareim30184380) December 8, 2021
VORTECS™ data comes from Cointelegraph Markets Pro Before the recent price increase, a bullish outlook for WNXM also began to be discovered on December 11.
Cointelegraph’s unique VORTECS™ score is an algorithmic comparison of historical and current market conditions. These data points include a combination of market sentiment, trading volume, recent price changes, and Twitter activity.
As shown in the figure above, WNXM’s VORTECS™ score climbed to the green zone on December 11, and reached a high of 77 around 57 hours before the price rose by 49% the next day.
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