As decentralized finance continues to increase its grip on the general market for cryptocurrencies, The Binance Smart Chain (BSC) is starting to emerge as a suitable option for traders looking to escape high transaction fees on the Ethereum (ETH) network.
Since more attention is paid to BSC, DeFi projects operating on the chain have also seen an influx of buying activity in recent weeks, as token holders rush to supply liquidity for the newer protocols. One of those projects is Venus (XVS), an algorithmic money market and synthetic stablecoin protocol designed specifically for the BSC.
Data from Cointelegraph Markets and TradingView shows that the price of XVS spiked 775% from a low of $ 10.04 on February 2 to an all-time high of $ 82.86 on February 18 amid a surge in activity on the BSC.
Total locked value grows as the list of supported assets expands
A look at the feed of Twitter The project targets a rapidly expanding ecosystem that has been systematically adding top cryptocurrency projects to its list of assets that can be deposited to earn interest, participate in the liquidity mining program, or used as collateral to borrow other assets.
Cardano (ADA) is the newest addition, while the other projects currently available are Ethereum (ETH), Litecoin (LTC), Polkadot (DOT), and Chainlink (LINK).
Similar to MakerDAO (MKR) and DAI platform, Venus users can borrow against their assets and mint Vai, the stablecoin for the Venus protocol. From February 1, VAI supply has grown 360% from 42 million tokens in circulation to a current count of over 195 million VAI.
According to the Venus board, 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 has USD 3.7 billion in TVL.
A survey of the top performing assets over the past week shows that BSC projects have outperformed the competition and are starting to attract liquidity from projects on the Ethereum network.
High gas commissions on the Ethereum network are likely to continue for some time and this could catalyze further growth in chains such as the BSC and DeFi protocols that can capitalize on their lower transaction costs.
With an expanding list of supported tokens and a rapidly growing TVL, Venus is rapidly establishing itself as one of the top competitors in the decentralized financial space.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trade movement involves a risk, you must carry out your own research when making a decision.