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

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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} price of tokens from BitmartAscendEX and BadgerDAO trade. 

Nexus Mutual is a decentralized platform that enables traders to safe insurance coverage protection in opposition to sensible contract exploits and at this time the altcoin rallied by 38% at the same time as Bitcoin and the broader crypto market proceed to appropriate.

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Knowledge from Cointelegraph Markets Pro and TradingView exhibits that after hitting a low of $46.59 on Dec. 13, the worth of the protocols native WNXM token spiked 38% to a every 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 recent partnerships and integrations with the Nexus Mutual protocol, an rising whole worth locked throughout the Nexus Mutual ecosystem and the mission’s capacity to efficiently present cowl to victims of protocol exploits which concerned the lack of funds.

Partnerships develop 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.

Lately, the builders behind Nexus Mutual held group 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 number of 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 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 entire worth locked on Nexus Mutual has additionally risen throughout the final 6 months and information from Defi Llama exhibits 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 which began final week.

Complete worth locked on Nexus Mutual. Supply: Defi Llama

Protocol customers have the choice of staking NXM tokens with initiatives they assume are safe because the monetary backing for the protection supplied. In trade 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’s at present $1.1 billion staked via the protocol,   $25.5 million in protection bought and $12.7 million in rewards paid out.

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Glad prospects are good for enterprise

A 3rd motive for the rising power of Nexus Mutual and the worth appreciation of WNXM has been the confirmed monitor document of creating victims complete after they lose cash to a sensible 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 group has paid out a number of claims for misplaced funds.

VORTECS™ information 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 situations 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 subsequent day.

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