While other digital currencies, as well as tokenized assets, are facing the wrath of a declining economy, yet the native token “WNXM” of Nexus Mutual is showing great resistance against prevailing market conditions. The value of WNXM is surging while TVL is also spiking exponentially.
The danger is always lurking while dealing with digital currencies which is evident from the recent hack attacks on Ascendex and Bitmart. Millions of dollars worth of crypto funds have been plundered by the hackers from the two unfortunate crypto trading platforms.
Nexus Mutual is an investment platform that is decentralized in nature. At this investment platform, investors utilize their smart contracts for acquiring insurance coverages. It has its own native tokenized currency called “WNXM” whose value has recently surged by about 38%. The surge is rather strange looking as the global crypto economy, including that of Bitcoin, is undergoing deeper and major correction.
On Monday, 13th December 2021, WNXM suffered a value decline which reduced the price to US$ 46.59. However, after the 24-hours interval, the decline was not only settled but also the asset saw a price increase to US$ 69.22.
It is believed that there are at least 3 major reasons which are keeping the price of WNXM tightly intact. The reasons are a new partnership, boost in total value locked (TVL) and thirdly facilitation offered to victims of security breach through insurance coverages.
In recent times, Nexus Mutual protocol has established several new partners. In addition, the protocol has been integrated with several Decentralized Finance (DeFi) apps recently. Both these factors have been strengthening WNXM in rebounding when there is a small or large-scale correction.
Similarly, in 2021, Nexus Mutual insurance coverage sales were at their peak. The purchases were more than double the size of 2020’s sales. For instance, in the month of November alone, Nexus Mutual had witnessed a 57% increase in the sales of insurance coverages. This then resulted in an increase in Nexus Mutual’s premiums by 125.8%.
On the other hand, TVL is continuously increasing at Nexus Mutual in the past 180 days. In terms of value, TVL is up by US$ 780.58 Million as of 9th November 2021. As of today, however, the TVL is resting at the price of US$ 585.33 which is because of the prevailing crypto market conditions.
Furthermore, the feature of staking WNXM is also helping the token in attracting more investors. Particularly when the tokens can be linked with projects which are considered by the users as more efficient and secure. Nexus Mutual is allowing users to earn yields up to 4.96% who are investing funds for providing insurance coverages. At present, there is more than US$ 1 Billion worth of WNXM which have been staked by the users.