As decentralized funding continues to grow in the broader cryptocurrency market, Binance Smart Chain (BSC) is gradually becoming a suitable option for merchants looking to avoid the high transaction fees on the Ethereum (ETH) network.
With more attention to BSC, DeFi projects in the chain have also seen a surge in buying activity in recent weeks as token holders rush to provide liquidity for recently introduced protocols. One such project is Venus (XVS), an algorithmic money market and synthetic stablecoin protocol specially developed for the BSC.
XVS / USDT 4 hour chart. Source: TradingView
Data from Cointelegraph Markets and TradingView shows XVS price skyrocketed 775% from a low of $ 10.04 on Feb.2 to an all-time high of $ 82.86 on Feb. 18 while activity at BSC increased .
The total blocked value grows as the list of supported assets expands
A scroll through the project’s Twitter feed points to a rapidly growing ecosystem that has systematically added top cryptocurrency projects to its list of assets that can be deposited to earn interest, participate in the liquidity mining program, or as collateral for borrowing other assets to serve.
Cardano (ADA) is the latest addition, while the other projects currently available are Ethereum (ETH), Litecoin (LTC), Polkadot (DOT) and Chainlink (LINK).
Similar to the MakerDAO (MKR) platform and DAI, users of Venus can borrow against their assets and mint Vai, the stable coin for the Venus Protocol. Since February 1, the supply of VAI has increased by 360% from 42 million tokens in circulation to currently more than 195 million VAI.
According to the Venus dashboard, the Venus Log is currently valued at $ 3.54 billion. This makes it the seventh largest DeFi protocol from TVL behind SushiSwap with a TVL value of 3.7 billion US dollars.
Total locked, total borrowed and available liquidity on Venus. Source: Venus
A survey of top performing assets last week shows that BSC projects have outperformed the competition and are gradually pulling liquidity away from projects on the Ethereum network.
XVS / USDT price compared to direct competitors. Source: TradingView
The high gas fees on the Ethereum network are likely to persist for some time, and this could catalyze the further growth of chains like BSC and DeFi protocols, which are able to benefit from the lower transaction costs.
With a growing list of supported tokens and a rapidly growing TVL, Venus is quickly establishing itself as a top contender in the decentralized finance space.
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