Despite a recent Decentralized Finance (DeFi) price tank and the return of Bitcoin as the dominating cryptocurrency, NEXO is closing with a net 480% increase. Other DeFi coins like LINK, YFI have also posted a considerable increase on a yearly basis despite the recent price cool down in the sector.
The NEXO platform was founded by resissimo employees Antoni Trenchev, Georgi Shulev and Kosta Kantchev. The original purpose of the platform was to provide a way for crypto users and investors to get loans in lieu of their crypto holdings rather than having to liquidate them entirely. This would allow them to have an alternative option in the market rather than simply cashing out and reduce their hard earned accumulations.
Normally coins undergo a public token event after initial sales to private investors. However, due to the high demand of DeFi tokens at the time of its release, the company continued on with the private events and raised their targets without resorting to any public fundraising. This meant that the tokens are now concentrated among few players and they are more likely to hold out for a longer period of time rather than cashing out at once on the cryptocurrency exchanges. This has also contributed to a better overall performance of the coin.
The DeFi sector is all about little innovations that change the game. NEXO’s Nexonomics approach help cement its reputation as a forward thinking player in the emerging sector. The roadmap included progressive updates and changes to the basic platform launched earlier and so far, most of them have gone according to plan. One of these was a very useful staking option that allowed NEXO holders to earn passive 2% APY if they chose to hold on to their coins for a longer period of time. This helped propel NEXO forward and resulted in the healthy 480% price increase during the course of the year. Despite the recent drop in trading volumes of the DeFi coins, NEXO still sees up to $30 million worth of trading every day.
After a stellar 2020, the DeFi coins will be looking to cement their place for the future. However, Bitcoin’s increasing domination of the sector will prove to a credible threat to their meteoric rise. Currently, Bitcoin has a lion’s share of the market with over 60% and the next biggest competitor Ethereum is still less than 10%. So, it will be interesting to see how they perform in 2021 especially with the yearly bonuses kicking in later on.
Image source: pixabay.com
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