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

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There’s 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 tens of millions of {dollars} value of tokens from BitmartAscendEX and BadgerDAO alternate. 

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

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Information 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.

3 reasons why Nexus Mutual (WNXM) price is holding steady in a volatile market
WNXM/USDT 4-hour chart. Supply: TradingView

Three causes for the sudden value reversal of WNXM embody a sequence of latest partnerships and integrations with the Nexus Mutual protocol, an growing whole worth locked throughout the Nexus Mutual ecosystem and the venture’s potential 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.

Lately, the builders behind Nexus Mutual held group calls with mStable, Balancer Labs, Alpaca Finance, Notional Finance and PoolTogether.

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

3 reasons why Nexus Mutual (WNXM) price is holding steady in a volatile market
Week over week will increase in Nexus Mutual insurance policies. Supply: Twitter

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

Whole worth locked is on the rise

The full 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.

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

Based on the information supplied by 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.

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

Glad clients are good for enterprise

A 3rd purpose for the rising power of Nexus Mutual and the worth appreciation of WNXM has been the confirmed monitor 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 as a result of hacks and flash mortgage exploits.

Fortunately for many 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 value rise.

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

3 reasons why Nexus Mutual (WNXM) price is holding steady in a volatile market
VORTECS™ Rating (inexperienced) vs. WNXM value. 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 creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you must conduct your personal analysis when making a choice.