Why is the Price of WXT Rising?
You might have seen that the price of Wirex’s native token, WXT, has risen an incredible amount of the past few weeks. But why? Our Head of Trading, Yves Renno, gave us a bit of insight into the reasons behind it.
WXT Price Rise
Wirex’s native token, WXT, has been growing at an unprecedented rate in recent weeks, leaving it at a new high for 2022. With a bullish outlook, over the past 14 days, the currency has seen a 47% growth with a gradual upward trend, and a trading volume on centralised exchanges of over $1.3 million in the past 24 hours (as of 28/03/21 4pm BST).
More specifically, there are a few likely reasons for this: a launch with nascent DeFi protocol Nereus, revamp of X-tras in the Wirex app, and the launch of fee-free WXT exchanges. Wirex has begun to bridge the gap between the fintech, CeFi and DeFi worlds, and our users have responded favourably to that. Across Nereus and the Wirex app, we’ve already seen over 850 million WXT staked and locked.
Wirex recently invested 5 billion WXT in DeFi protocol, Nereus, where the token is essentially used to distribute rewards. WXT will also be used to support the protocol’s ambitious ecosystem, as a governance token, a valid collateral for specific loans, or the volatility absorber of an algorithmic stablecoin: many options are still being discussed and built.
Nereus has already proven hugely popular, thanks to the project’s exciting objectives. Reflecting the growth of the metaverse and Web 3.0, one such objective is the design of a governance system that aims to address the issues in other existing protocols. Nereus endeavours to offer a great voice to all participants, not just those with the largest stake.
Nereus has already locked $1.66m and staked $929k worth of WXTs. If the former amount is fresh supply that would start to increase the circulating supply only in a few months, the latter is effectively reducing the current supply.
Earlier this month, we revealed an upgraded rewards programme, X-tras, powered by WXT. Set to become one of the most diverse and lucrative rewards schemes on the market, it will allow users to earn up to 20% AER on selected crypto holdings, up to 16% in Savings Bonuses on WXT holdings, and up to 8% in Cryptoback™ rewards on all purchases.
Based on the new scheme, users can access the highest level of benefits by locking WXT funds. In fact, we now have over 360 million WXT locked. Therefore, X-tras have certainly been an essential driver for the WXT price.
Last week, we announced that we’re now offering fee-free exchanges for Wirex users. Not only have we removed all fees on fiat-to-fiat and fiat-to-stablecoin exchanges, but also all exchange fees and daily limits from WXT purchases. This means that you can now buy as much WXT as you like in the Wirex app, with 0% exchange fees! In fact, we’ve seen a net amount of 130 million WXT has been bought by Wirex customers in-app since mid-February.
All these factors explain the short-term bullish outlook for WXT. And as we get closer to the end of the Nereus lockout period for many participants, the challenge is to turn this short-term dynamic into a long-term one, by offering our community the most successful, useful and cutting-edge DeFi features.