Modern problems require modern solutions, and Venus (CCC:XVS-USD) is trying to create a decentralized solution to crypto’s collateral problem. The innovative staking model of the platform, combined with a recent token burning, is leading investors toward Venus (XVS) price predictions.
Traditional lenders don’t allow investors to pledge cryptocurrency assets as collateral for loans or other financial applications. Many investors don’t want to have to sell their portfolios, for fear of capital gain taxes or missed growth opportunities. Venus seeks to remove this dilemma by creating a “synthetic stablecoin,” which can be converted to national currency.
Basically, lenders can stake a variety of different coins on the Venus protocol, like Bitcoin (CCC:BTC-USD), for example. When staked, users can then take out minted vBTC tokens, while their staking earns an APY. They can take the vBTC tokens, convert them to a stablecoin like USD Coin (CCC:USDC-USD), and convert that to U.S. dollars. From there, the investor can use the currency in traditional finance applications and make payments on the vBTC at any time. When the user finishes their payments, they can remove their staking with a healthy yield on top of it.
The protocol is yet another outside-the-box DeFi application that allows investors to distance themselves from big banks. It’s a hit with DeFi fans, and the XVS token is a big incentive for the platform’s use. XVS is a governance token that gives holders power in making decisions about the protocol.
Venus (XVS) Price Predictions: What Happens After Token Burn?
XVS is seeing a massive jump today. The token is up 50% with a 98% increase in trading volume. The upswing can be credited to the developers’ massive token burn in anticipation of the VRT token launch. The VRT token, a rewards token for XVS holders, took place yesterday. Apparently, around 50% of XVS tokens were burned, a massive reduction of supply that is leading to a huge increase in demand.
The result is a number of bullish price calls. Let’s take a look:
- WalletInvestor is pricing XVS’s value at $283 in 12 months.
- Gov Capital is also bullish on Venus, predicting a valuation of $265 in a year.
- DigitalCoinPrice predicts a $190 price point for XVS by the close of 2021.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
