Venus Protocol calls itself a decentralized marketplace for lenders and borrowers. You can earn rewards by betting your cryptocurrency and collateralize your assets by minting their proprietary synthetic coin, GO. Their application runs on the Binance Smart Chain allowing fast transaction times and low fees.
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Venus Protocol Prediction
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 will 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’re thinking about buying the crypto plunge, 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 mistake?
Venus Protocol Price Prediction 2025
Based on the above data and arguments, an XVS token price 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 owners expect and hope it will be. These are the advantage of the first engine and consolidation and subsequent monopoly.
A first-mover advantage can simply be defined as the ability of an enterprise to perform better than its competitors as a result of being first on the 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 certain type of product or service.
Both phenomena we mentioned above speak in favor of other yield farming competitors such as YFI, AAVE, Compound etc. and we don’t think they will change in the medium and long term future.
We are still not sure if Venus Protocol and similar projects 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 Venus Protocol worth investing?
XVS is a good short-term investment when the market is running to the BULL. Usually these types of newer projects do extraordinarily well when the overall crypto market is in green and far outperforms other better-known projects. However, make sure you get out of it in time as they tend to take a hit during range and bear market cycles.
Why will the Venus Protocol succeed?
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 may 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 up or leaves the project entirely.
Will Venus reach $100?
This is part of the real possibility, even in the short term. It could very well reach $100 within a year.
Can Venus reach $1000?
Venus will almost certainly NOT reach $1000 in the near future, unless we see a 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 must 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 happens if the value of your collateral falls below the value of your loan?
Let’s take a look. When betting on the Venus Protocol, you are allowed to mint their proprietary stable coin, GO. You can mint up to half the dollar value of your wagered assets, but what can you do with your newly minted stable coins? Buy a boat or make some improvements to the house? We’re sorry, but VAI is a synthetic stable currency and you can’t spend it on goods or services in the real world.
All you can do with GO 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 drops by 70% and now you have to GO more than your collateral is worth in US dollars.
Once your collateral falls below the loan amount, you have to face liquidation. You will be blown away. That 70% drop has just happened to most altcoins in the last week, including XVS.
This contravenes 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.
The Protocol of Venus seems risky to me. The rise is an annual percentage, modest in size compared to the potential gains from 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
- Power supply 10.019.817 XVS
- Total supply 30,000,000 XVS
- Location #125
- Sentiment (24 hours) 48%
Demand is created by investors betting their crypto assets and earning 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 entirely controlled by the XVS investment community. XVS tokens buy voting rights and there was no pre-mined allocation for the founders or technical team. This is nice to see 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 design. Swipe itself is ranked #171 by market cap and also works on the Binance Smart Chain. I’m not sure what their side project is, but XVS is currently overtaking Swipe in cryptomarkets.
Community
While researching this article, I came across an alarming amount of amateur YouTube crypto-hyping channels. The Protocol of Venus 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 bright side. That made me nervous.
Reading the latest posts on Reddit, there are stories of people losing their coins staked without warning. A poster was panicking about losing his XVS and still had to go. There seems to have been a bloodbath involving people betting and borrowing. This was very revealing and would have further discouraged me from getting involved.
Wallet Exchanges and Support
Major exchanges trading XVS include Binance for non-US residents, HitBTC, or most DeFi swap 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 at the moment I also have all my DeFi wallets imported into my Metamask wallet. I have yet to reach a definitive solution for a DeFi wallet: research is ongoing.
How to buy XVS
As with any altcoin, you can buy it with cryptocurrency on an exchange or you can trade it from a DeFi wallet on PancakeSwap. I could not 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.
Venus Protocol Price Prediction Summary
If I was writing a price prediction 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 it was reassuringly stable for about 4 months until early February, when it rose 2,400% to $102 in three weeks.
I would say the >60% retracement to $35 and the subsequent moon stroke at its all-time high, near $150. I would secretly regret not buying it, but I would wait for the price to drop substantially, before entering. Well, we’re lucky! The crypto-gods were kind and blessed us all with a timely 85% drop.
So will I buy some?
The case for –
XVS has been hit much harder than most altcoins, but tends to recover more aggressively. From a speculative point of view, yes, it sounds 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 switch using the Venus Protocol platform, but I might take some XVS and see it recover. In fact, I’m tempted to trade some of my less negative 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 more confident in coining VAI as it is very unlikely that my stake will plummet in value as I earn interest. But why should I hold stable coins when I’m trying to invest in a crypto bull market?
Be careful if you invest or borrow against your cryptocurrency on the platform. Venus was to be the Roman goddess of love, not the patroness of bad ideas.
