As decentralized financing continues to increase its control over the wider cryptocurrency market, Binance Smart Chain (BSC) is beginning to emerge as a suitable option for traders looking to escape the high transaction fees on the Ethereum (ETH) network.
With more attention paid to BSC, DeFi projects working on the chain have also seen an influx of buying activity in recent weeks as token holders scramble to provide liquidity for recently launched protocols. One such project is Venus (XVS), which is an algorithmic money market and stable synthetic currency protocol designed specifically for BSC.
Data from Cointelegraph Markets and TradingView shows that the price of XVS rose 775% from the low of $ 10.04 on February 2 to an all-time high of $ 82.86 on February 18 amid an increase in activity on BSC.
The total locked value increases as the list of supported assets expands
Scroll through the Twitter Feeding refers to a rapidly expanding ecosystem that has been systematically adding the best cryptocurrency projects to a list of assets that can be deposited to earn interest, participate in a liquidity mining program, or used as collateral to borrow other assets.
Cardano (ADA) is the latest addition, while other projects currently available are Ethereum (ETH), Litecoin (LTC), Polkadot (DOT) and Chainlink (LINK).
Similar to MakerDAO (MKR) and DAI, Venus users can borrow against their assets and the Mint Vai, the Venus protocol’s stablecoin. Since February 1, the supply of VAI has grown 360% from 42 million traded tokens to the current number of over 195 million VAI.
According to the Venus dashboard, there is currently $ 3.54 billion in total value locked into the Venus protocol, making it the seventh largest DeFi protocol by TVL behind SushiSwap which currently stands at $ 3.7 billion in TVL.
A survey of top-performing assets last week showed that BSC projects have outpaced the competition and are starting to pull cash away from ventures on the Ethereum network.
The higher gas fees will likely persist on the Ethereum network for some time, and this could spur further growth in chains like BSC and DeFi protocols that are able to benefit from lower transaction costs.
With an expanding list of backed tokens and a rapidly growing TVL, Venus is rapidly establishing itself as a major competitor in the decentralized finance space.
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