Venus Protocol presents itself as a decentralized marketplace for lenders and borrowers. You can earn rewards by betting your cryptocurrency and collateralize your assets by minting their proprietary synthetic stable coin, GO. Their application runs on Binance Smart Chain allowing for fast transaction times and low fees.
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Venus Protocol
Despite the ongoing general collapse of the cryptocurrency market, there may be reasons for optimism about the price of the Venus Protocol (XVS) token.
We’ll ignore the current market volatility and take a look at the fundamentals: the use case, tokenomics, team members, public profile, and community sentiment.
If you are thinking of buying the crypto decline, technical analysis can only help so much. We are in uncharted waters and analyzing past events is speculative, at best. So, is the Venus Protocol a success or a failure?
Venus Protocol price prediction 2025
Based on the data and arguments set out above, a price of the XVS token in 2025 could be between $200 and $500. A reasonable long-term estimate: ~$317.41
Venus Protocol price prediction 2030
There are a couple of laws of human progress that prevent us from thinking that Venus will be what its holders expect and hope it will be. These are the advantage and consolidation of the first engine and the subsequent monopoly.
A first-move advantage can simply be defined as a company’s ability to perform better than its competitors as a result of being the first to market in a new product category.
Monopoly is a situation in which a single company or group owns all or almost all of the market for a given type of product or service.
Both phenomena that we have mentioned above speak in favor of other competitors of yield agriculture such as YFI, AAVE, Compound etc. And we do not think that it will change in the future in the medium and long term.
We are still not sure that Venus Protocol and a similar project have a long-term future and the XVS token could be worth ZERO in 2030 since the project may not exist by then. The chances are 50-50 in our eyes that this will happen.
Is it worth investing in Venus Protocol?
XVS is a good investment for the short term when the market is running BULL. Usually these types of newer projects do extraordinarily well when the overall cryptocurrency market is in the green and far outperform other more well-known projects. However, make sure you get out of it on time as they tend to receive a beat during variable and bearish market cycles.
Why will venus protocol be successful?
Because it offers a valuable service, it has already built a name for itself in its niche and has not suffered security breaches or other types of compromises (economic, reputational, etc.). The token itself provides utility and makes sense, which is not the case with many other similar projects.
Why will XVS fail?
Venus could fail due to fierce competition, dynamic technological field, and rocket speed developments in its niche. Another common reason why this type of project fails is team problems: the team splits or abandons the project altogether.
Will Venus reach $100?
This is within the real of possibilities, even in the short run. It could very well reach $100 within a year.
Can Venus reach $1,000?
Venus will almost certainly NOT reach $1000 in the near future, unless we see a face-melting bull run that will see bitcoin at $100k and ETH at $20k.
Fundamentals
Use case
At first glance, the use case is like a good old-fashioned retail bank. People lend their money to the platform so that other people can borrow it. The lender earns a portion of the interest and transaction fees that the borrower pays. The complex tokenomics and minting are to make it work on a decentralized blockchain and communicate with the rest of Web 3.0.
Again, that was the first look, but I immediately wondered: what if the value of your collateral falls below the value of your loan.
Let’s take a look. When you bet on the Venus Protocol, you are allowed to mint their proprietary stable coin, VAI. You can mint up to half the dollar value of your staked goods, but what can you do with your newly minted stable coins? Buying a boat or making some improvements to the house? We’re sorry, but VAI is a synthetic stable currency and you can’t spend it on real-world goods or services.
All you can do with VAI is exchange it for another token or “Vault” (lock it) to earn interest. So, choose their recommended safe limit of 40% collateralization, just to be cautious. So the price of your collateralized asset plummets by 70% and now you owe more GO than your US DOLLAR guarantee is worth.
Once the guarantee falls below the loan amount, the liquidation is faced. You will be wiped out. That 70% drop just happened to most altcoins in the last week, including XVS.
This violates the first rule of portfolio management. NEVER take out a secured loan against one asset to speculate on another. You can end up losing both. It also breaks my second rule: NEVER use derivatives or leverage to trade cryptocurrencies.
Venus Protocol seems risky to me. The rise is an annual percentage, modest in size compared to the potential gains of holding the token alone. The downside is the risk of losing everything. Regardless, this article is about the future price of their token, not their platform.
Tokenomics
- XVS token name
- Current Price $30.16 (+20.10% 24 Hours)
- Current Market Cap $301,926,218
- Supply current 10,019,817 XVS
- Total supply 30.000.000 XVS
- Ranking #125
- Sentiment (24 hours) 48%
Demand is created by investors who stake their crypto assets and earn their rewards in XVS tokens. As more people borrow and lend, commissions will be generated and paid to the community.
The governance of the platform is wholly controlled by the XVS investor community. XVS tokens buy voting rights, and there was no pre-mined allocation for the founders or technical team. This is nice to look at as it makes governance much less centralized.
Team
The venus protocol is supported by the Swipe (SXP) project team, consisting of CEO Joselito Lizarondo, COO John Khenneth and CTO Eric Adolfo. These are all senior guys with years of experience in crypto project. Swipe itself is ranked #171 by market cap and also works on Binance Smart Chain. I’m not sure what their side project is, but XVS is currently overtaking Swipe in crypto markets.
Public engagement
The Twitter account has a respectable 106 thousand followers, and Venus Protocol tweets ads several times a week. It sticks to important news and announcements and does not advertise the XVS token at all. I noticed that everything is coordinated and professionally branded.
The venus blog is active and informative. The CEO, Joselito Lizarondo contributes as a writer, and there are announcements about updates, partnerships and general news. Again, it is professional and organized.
The industry standard is open source software, and you can inspect Venus Protocol’s GitHub here. Content means little to most people, but it’s an essential part of any worthy DeFi crypto project.
Community
While researching this article, I came across an alarming amount of YouTube’s amateur crypto-hype channels. Venus Protocol seems to be everyone’s last ticket to the moon. I must assume that this low-quality shilling is not paid for by the Venus Protocol. It’s hard to say, but almost none of the videos I saw mentioned the risks, just the upside. This made me nervous.
Reading the latest posts on Reddit, there are stories of people losing their bet coins without warning. A poster was panicking about losing its XVS and still had to GO. It seems that there was a bloodbath involving people who staked and borrowed. This was very revealing and would have further discouraged me from getting involved.
Exchange and Wallet support
Major exchanges that trade XVS include Binance for non-U.S. residents, HitBTC, or most DeFi exchange sites, such as Pancakeswap, Binance Dex, and Cointiger.
Any Binance Smart Chain compatible wallet should handle XVS and any other associated BEP20 tokens. The Binance wallet works well, but I currently also have all my DeFi wallets imported into my Metamask wallet. I have yet to reach a definitive solution for a DeFi portfolio: the research is ongoing.
How to buy XVS
As with any other altcoin, you can buy it with crypto on an exchange, or you can trade it from a DeFi wallet on PancakeSwap. I couldn’t find a way to buy XVS directly with fiat. If I were to acquire some XVS right now, I would use USDT, BNB or BTC to buy it on the Binance exchange. I could then move it to my Binance DeFi wallet to point it to the Venus protocol platform.
Summary of Venus Protocol Price Forecasts
If I were writing a price forecasting article for Venus Protocol (VSX) two weeks ago, it would describe a token at its all-time high. I may have talked about its $4 rushed trip, when it debuted on Binance in early October 2020. Of how reassuringly stable for about 4 months until early February, when it rose 2,400% to $102 in three weeks.
I would like to bring the >60% retracement back to $35 and the resulting moonshot to its all-time high, close to $150. I would secretly regret not having bought any, but I would wait for the price to drop substantially, before entering. Well, we’re in luck! The crypto-gods were kind and blessed all of us with a timely drop of 85%.
So will I buy some?
XVS has been hit much harder than most altcoins, but it tends to recover more aggressively. From a speculative point of view, yes, it seems risky, but a potentially very rewarding medium-term trade.
The case against –
From an investment perspective, I wouldn’t put my money into a company that risks destroying its customers every time the cryptocurrency market crashes. At this stage of the game, I prefer infrastructure projects to apps.
The verdict –
I will pass using the Venus Protocol platform, but I could take some XVS and watch it recover. In fact, I am tempted to trade some of my less influenced altcoins in XVS to reap the benefits of its expected recovery. After this, I will exchange them again.
If I were to bet assets on the Venus Protocol, I would tend to invest stable coins. I would therefore be safer to coin VAI as it is very unlikely that my bet will plummet in value as I earn interest. But why should I hold stable coins when I’m looking to invest in a crypto bull market?
Be careful if you invest or borrow against your cryptocurrency on the platform. Venus was supposed to be the Roman goddess of love, not the patroness of bad ideas.
