3 reasons why the price of Nexus Mutual (WNXM) rose nearly 40% during a volatile market

Interacting with cryptocurrencies is always risky, and the latest evidence is that hackers have stolen millions of dollars in tokens from the Bitmart, AscendEX and BadgerDAO exchanges in the past few weeks.

Nexus Mutual (WNXM) is a decentralized platform that enables investors to take out insurance against smart contract attacks. It went against the trend with double-digit growth.

Data from TradingView shows that after hitting $ 46.59 on December 13, WNXM price rose 38% to a daily high of $ 69.22 on December 14.

WNXM / USDT 4 hour chart | Source: TradingView

The three reasons WNXM’s price has skyrocketed are due to a number of new partnerships and integrations with the Nexus Mutual protocol, the growing Total Value Locked (TVL) in the Nexus Mutual ecosystem, and the project’s capabilities to be victims to successfully support protocol attacks.

Nexus Mutual Ecosystem Expansion Partnership

New partnerships and protocol integrations with various DeFi platforms appear to be among the factors driving the current recovery of WNXM.

Recently, the developers of Nexus Mutual held community calls with mStable, Balancer Labs, Alpaca Finance, Notional Finance and PoolTogether.

The project has also seen a steady increase in the number of insurance policies purchased, and in the past week several multi-million dollar policies have opened in Curve, Anchor, Stake DAO and OlympusDAO.

The Nexus Mutual Support Policy increases weekly | Source: Twitter

As the graph above shows, from November 22-29, Nexus Mutual saw insurance sales grow 53% and the total value of coverage offered increased by 121%, resulting in a 125.8% increase in the premium earned through the protocol led.

The total locked value increases

TVL on Nexus Mutual has also risen in the past 6 months, and data from Defi Llama shows it hit an all-time high (ATH) of $ 780.58 million in November.

Currently, the TVL on the Nexus Mutual is at $ 585.33 million, reflecting the sharp market-wide downturn that began last week.

Total value locked on Nexus Mutual | Source: Defi Lama

Protocol users have the option of staking WNXM with projects that they deem to be safe in order to financially secure the scope offered. In exchange for covering the funding, users will receive a return on their deployed tokens, and the average APY is currently 4.96%.

According to the Nexus Mutual app, there is currently $ 1.1 billion staked by the protocol, $ 25.5 million insured, and $ 12.7 million in rewards paid.

Satisfied customers support the development of Nexus Mutual

The third reason Nexus Mutual’s growing power and WNXM’s price rise is because victims were supported after losing money to smart contract exploits or attacks on the protocol.

One of the DeFi platforms that owned Nexus Mutual prior to the $ 100 million hack was Cream Finance, a protocol that has steadily declined in 2021 due to hacks and flash credit attacks.

Fortunately for those who bought protection against the attacks, the Nexus Mutual community has paid out multiple times for lost funds.

https://twitter.com/Kareim30184380/status/1468567815326216195?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“I would like to thank Nexus Mutual for accepting my request, I am literally in tears. Right now I’m so grateful that I didn’t even realize I was affected by the Cream Finance attack until I tried to withdraw my BNT through Cream Finance.

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