Key Takeaways

• The Venus Protocol allows people to borrow crypto in the form of stablecoins.
• Its XVS token has been in the doldrums recently, having struggled to come anywhere near the price it enjoyed in early 2021.
• Can XVS turn things around and help spearhead a DeFi revival?

The Venus Protocol is a decentralized finance (DeFi) crypto lending platform with a twist. The network allows people to mint stablecoins based on the collateral they put in when they want to take out a loan.

The network’s XVS token has had a tough time over the last two years or so. The heights of May 2021, when it came very close to breaking past $150, seem a long way away.

There has been some good news for the platform, though, as it has enjoyed a solid few months of interest revenue growth, despite Binance – the exchange which hosts the blockchain Venus Protocol is based on – facing legal action from the United States Securities and Exchange Commission (SEC). 

But what is Venus Protocol (XVS)? How does Venus Protocol work? Let’s see what we can find out, and also take a look at some of the Venus Protocol Price Predictions that were being made as of 20 July 2023.

Venus Protocol (XVS) Explained

The Venus Protocol  is one of many cryptocurrency lending platforms out there. What makes the system, which was founded in 2020 by a team led by crypto entrepreneur Joselito Lizarondo, a little different from its rivals is that it can mint stablecoins, cryptos that are designed to match the price of an asset, usually the US Dollar.

Unlike most crypto lenders, Venus Protocol is based on the Binance (BNB) blockchain which, it claims, helps it be both quicker and cheaper than similar platforms based on Ethereum (ETH). 

The Venus Protocol is supported by its own native token which goes by the ticker handle XVS.

How Venus Protocol Works

The Venus Protocol system allows people to set aside a deposit of crypto as collateral against a loan made in stablecoins. The collateral actually helps mint the stablecoins, ensuring that the system works as it is supposed to.

In terms of XVS itself, this token gives holders the right to vote on changes to the network. It can also be bought, sold, or traded on exchanges. 

It is worth pointing out that, because XVS is based on the Binance blockchain, it is a token, not a coin. You might see references to such things as a Venus Protocol coin price prediction, but these are wrong. 

XVS Price History

Let’s now take a look at some of the Venus Protocol price history . While past performance should never be taken as an indicator of future results, knowing what the token has done can help give us some very useful context when it comes to either making or interpreting a Venus Protocol price prediction. 

When XVS first came onto the market in late 2020, it was worth about $3. In early 2021, the crypto market exploded and XVS was able to get in on the action, surging to an all-time high of $147.02 on 10 May. After this, though, it drastically went down and it closed the year at $15.16, a fall of nearly 90% from its record price.

2022 was not much better. The collapse of the Terra (LUNC) blockchain saw Venus Protocol drop below $3.65 in May and further market crashes stymied any significant recovery. At the end of the day on 31 December, XVS was worth $3.84, an annual loss of nearly 75%.

So far, 2023 has been a little more encouraging, but not much more encouraging, for XVS’ holders. The token rallied to trade at above $8 in April. However, it then fell, with a nadir coming on 10 June. Following that day’s news that Crypto.com was suspending its US institutional arm, XVS fell nearly 25% from $4.03 to $3.08.

Since then, there has been a slow, but steady, recovery and, on 20 July 2023, Venus Protocol was worth about $4.30.

At that time, there were 15.4 million XVS in circulation out of a total supply of 29.7 million. This gave the token a market cap of $66.6 million, making it the 316th-largest crypto by that metric. 

Venus Protocol Price Analysis

In recent weeks, the price of XVS has recovered by nearly 40% from its low of 10 June. 

However, it is still worth a little over 10% less than the $4.86 it was trading at before the SEC announced it was suing Binance on 5 June. 

Venus Protocol Coin Price Prediction 

With that all out of the way, let’s take a look at some of the Venus Protocol price predictions that were being made as of 20 July 2023. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice. 

First, CoinCodex  had a relatively optimistic short-term Venus Protocol price prediction. The site said that XVS would reach $4.52 by 25 July and hit $5.92 by 18 August. The site’s technical analysis was, perhaps surprisingly, extremely bearish, with 27 indicators sending downbeat signals and just three making bullish ones. 

Venus Protocol Forecast for 2023

When it came to other Venus Protocol price predictions for 2023, DigitalCoinPrice  said it would trade at $8.80 and Bitnation  thought it would get to $6.48. PricePrediction.net , meanwhile, said it would reach $5.80 this year. 

Venus Protocol Forecast for 2025

In terms of a Venus Protocol price prediction for 2025, Bitnation was out in the lead with a forecast of $15.12, while PricePrediction.net had it at $11.66. DigitalCoinPrice was somewhere between the two, saying XVS would trade at $14.89 in two years’ time.

Venus Protocol Forecast for 2030

Moving on to a more long-term Venus Protocol price prediction for 2030, PricePrediction.net thought it would get to $77 that year, while Bitnation thought it could reach $36.72. DigitalCoinPrice had an XVS price prediction which said the token would trade at $44.35 that year. 

Is Venus Protocol a Good Investment?

It is difficult to tell. On the one hand, Venus Protocol operates in a crowded market which has never quite been the same since the Celsius crypto lending platform suspended withdrawals in June 2022. 

Not only that, but the XVS token has not exactly been breaking through any significant barriers recently. 

With the SEC mounting legal action against Binance – the exchange which hosts the blockchain Venus Protocol is based on – the future looks at least uncertain, if not bleak. 

On the other hand, the platform has been able to grow the amount of revenue it makes via interest in the last three months. 

As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in XVS.

Will Venus Protocol go up or down?

No one can really tell right now. While the Venus Protocol crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in Venus Protocol?

Before you decide whether or not to invest in Venus Protocol, you will have to do your own research, not only on XVS, but on other, related, coins and tokens such as KAVA or Compound (COMP). Either way, you will also need to make sure that you never invest more money than you can afford to lose.

FAQs 

How many Venus Protocol are there?

On 20 July 2023, there were 15.4 million XVS in circulation out of a total supply of 29.7 million.

Will Venus Protocol reach $100?

It might do, but not for a little while. PricePrediction.net said it would reach three figures in 2031. Keep in mind that, although XVS has traded above $100 before, it has not done so since May 2021. 

What is Venus Protocol used for?

The XVS token gives its holders the right to vote on changes to the Venus Protocol crypto lending platform. It can also be bought, sold, and traded on exchanges. 

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.