In the world of Defi, the momentum is steady and new projects are coming out everyday. There seemed to be much excitement around defi within the cryptocurrency markets but it began to fade with the onslaught of dapps, Nft's, Meme coins and crypto gaming taking center stage as viable solutions for the masses to indulge in crypto. However Defi is slowly beginning to take back its throne of being the central component to the success of Bitcoin's ecosystem.
Venus Protocol that was launched in 2020, and took DeFI by surprise due its close connection with Binance (On this i will explain later). Venus Protocol has been programmed to be used for three major use cases.
- Automated Lending
- Automated Borrowing
- Collateralized Minting of VAI
Automated lending and borrowing is unanimous with this mechanism that enables users to instantly borrow and lend without intermediaries. In this system, borrowers can borrow crypto-based loans at lower fees, and lenders are incentivized to provide loan services. Venus was created with the idea of enabling the minting of VAI stablecoins, collateralized loans, and incentivizing suppliers of collateral assets supported by the protocol. No XVS coins were pre-mined for developers or the Venus team, so holders have full control over the network and its token. A total of 16,235,603 XVS are in circulation out of the 30,000000 that is the max supply.
Venus is built and hosted on the Binance Smart Chain, which means that
its token, XVS, is a BEP-20 token. VAI is a stablecoin that is pegged to the U.S dollar at 1:1, however anyone can mint VAI by using a vast majority of cryptocurrencies on the platform. XVS is used for governance and staking on the Venus Protocol. The value of XVS is linked with the liquidity on the platform.
Let me begin by pointing out the factors that i believe are indicative of a strong Binance investment in the VENUS protocol and why XVS could meteorically rise in value in the course of this bull market in 2024.
- Venus protocol was founded and developed by the Swipe project dev team, led by Joselito Lizarondo. Swipe is a global issuer of cryptocurrency debit cards, while the same team designed the Venus lending protocol to satisfy the need for DeFi protocols. The Swipe team and company was bought over by Binance. With Binance exchanges plans to enter payment processing, could Venus protocol be at a the center stage of the future of cryptocurrencies at Binance.
- VENUS BNB 's unprecedented yet unnoticed volume among the top 20 cryptocurrencies. Venus BNB (vBNB) is a cryptocurrency token and operates on the BNB
Smart Chain (BEP20) platform. Venus BNB has a current supply of
84,327,095. It is a rehypothecated cryptocurrency meaning, it is the BNB that can still be used for transactions despite being pledged as collateral. Venus BNB's global volume out of over 10500 cryptocurrencies is at No.11 on the Coinmarketcap listing index.
if you see carefully one will notice a pattern, the 24 hour volume has been consistently close to BNB 's global volume, this is also evident on the 30 day volume column. This is highly indicative that the largest liquidity providers for BNB are directly lending, borrowing and putting collateral with Venus BNB on the Binance smart chain. Venus BNB is presently at a $12.45 a far cry from BNB's price of $510. This is also highly indicative that when Venus BNB, Venus ETH, Venus SOL and the likes of other rehypothecated cryptocurrencies on the Venus protocol begin their ascension towards base value of their base cryptocurrencies the price of XVS will meteorically rise to 50X its present value
XVS presently is at $6.50 and with the coming bull market, when more large traders (Whales) require more liquidity, the price of XVS will only rise with volumetric gains in the rehypothecated cryptocurrency markets. But why will XVS value increase? XVS is foundational to the governance of the protocol, as more and more lenders arrive on Venus protocol they would want to dictate the direction of the protocol in favor of their own markets for that they would need to purchase and hold XVS, XVS's market capitalization can be anywhere between $1 to $50 Billion USD in the coming years with an average price at full circulating supply of close to a $350 -$750 with Bitcoin at over $100K USD.
Note: This is an early analysis of a an early stage cryptocurrency, this not financial advice, all predictions are for your personal appraisal, please invest at your own risk and read the exchanges risk disclosure.
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