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

There are always going to be risks involved when interacting with cryptocurrencies, and recent proof of this can be seen over the past few weeks after grok hackers managed to abscond with millions of dollars worth of tokens from BitMart, AscendEX and BadgerDAO exchange. Nexus Mutual is a decentralized platform that allows investors to secure indemnity coverage against ache abridge exploits, and today, its token, WNXM, rallied by 38 % evening as Bitcoin ( BTC ) and the wide crypto market continue to correct. Data from Cointelegraph Markets Pro and TradingView shows that after hitting a first gear of $ 46.59 on Dec. 13, WNXM ’ mho price spiked 38 % to a day by day high at $ 69.22 on Dec. 14 .WNXM/USDT 4-hour chart. Source: TradingView Three reasons for the sudden price about-face of WNXM include a series of new partnerships and integrations with the Nexus Mutual protocol, an increasing total value locked within the Nexus Mutual ecosystem, and the project ’ s ability to successfully provide coverage to victims of protocol exploits, which involved the passing of funds.

Partnerships expand the Nexus Mutual ecosystem

New partnerships and protocol consolidation with respective decentralized finance ( DeFi ) platforms appear to be one of the drive factors behind WNXM ’ s stream recovery. recently, the developers behind Nexus Mutual held community calls with mStable, Balancer Labs, Alpaca Finance, Notional Finance and PoolTogether. The stick out has besides seen a steady get up in the number of cover policies purchased, and within the survive week, a few multi-million-dollar policies were opened on Curve, Anchor, Stake DAO and OlympusDAO .Week-over-week increases in Nexus Mutual policies. Source: Twitter As shown in the chart above, Nexus Mutual saw a 53 % increase in the total of policies sold between Nov. 22 and Nov. 29, and the full prize of the coverage offered increased by 121 %. The increase in usage resulted in a 125.8 % increase in the premiums earned by the protocol .

Total value locked is on the rise

The total value locked ( TVL ) on Nexus Mutual has besides risen within the last six months, and data from Defi Llama shows the measured hitting a high of $ 780.58 million on Nov. 9. presently, the TVL on Nexus Mutual sits at $ 585.33 million, which is reflective of the sharply market-wide downturn that started last week .Total value locked on Nexus Mutual. Source: Defi Llama protocol users have the choice of staking NXM tokens with projects they think are plug as the fiscal back for the coverage provided. In substitute for funding the coverage, users receive a give way on their staked tokens and a current average APY of 4.96 %. According to the data provided by the Nexus Mutual app, there is presently $ 1.1 billion staked through the protocol, $ 25.5 million in coverage purchased and $ 12.7 million in rewards paid out.

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

Satisfied customers are good for business

A third base argue for the growing force of Nexus Mutual and the price appreciation of WNXM has been the testify track record of making victims whole after they lose money to a ache contract exploit or protocol hack. One of the DeFi platforms that had Nexus Mutual coverage anterior to an feat of $ 100 million was Cream Finance, a protocol that has suffered back-to-back losses in 2021 ascribable to hacks and flash loan exploits. fortunately for those who had purchased coverage anterior to the feat, the Nexus Mutual community has paid out multiple claims for lost funds .

VORTECS™ data from Cointelegraph Markets Pro besides began to detect a bullish lookout for WNXM on Dec. 11 prior to the recent price rise.

The VORTECS™ Score, single to Cointelegraph, is an algorithmic comparison of historical and stream market conditions derived from a combination of datum points, including market sentiment, trading volume, recent price movements and Twitter activeness .VORTECS™ Score (green) vs. WNXM price. Source: Cointelegraph Markets Pro As seen in the chart above, the VORTECS™ Score for WNXM climbed into the green partition on Dec. 11 and reached a high of 77 around 57 hours before the price increased 49 % over the adjacent day. The views and opinions expressed hera are entirely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and deal move involves hazard, you should conduct your own inquiry when making a decisiveness .

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