XVS: A potential stock in the DeFi lending track, can it break through historical highs?
The Venus protocol (XVS) recently completed its V4 version upgrade, introducing an automatic income distribution system and refined governance structure, supporting cross-chain interoperability testing, and continuously enhancing ecological attractiveness.
XVS holders can participate in protocol governance by locking tokens, voting on core matters such as asset listing and interest rate model changes, with governance rights themselves possessing network value. At the same time, users can earn XVS rewards by collateralizing assets for loans, and participating in liquidity mining can yield additional protocol fee dividends, forming a dual demand of 'governance + income'.
Although the XVS price has formed strong support around $40, a short-term breakthrough of the $47 resistance level still requires a catalyst. On-chain data shows that XVS whale addresses (holding over 1,000 tokens) began to continuously increase their holdings at the end of July, with a single-day net inflow exceeding $20 million on August 15. Mainstream institutions are starting to view it as an asset class independent of Bitcoin.
However, XVS still needs to deal with technical risks. In November 2024, the Dilation Effect discovered a precision loss vulnerability in the core pool of Venus, and market confidence still needs time to recover. Additionally, competition in the DeFi market is intensifying, and XVS needs to continue innovating to maintain its leading position.
The potential release of XVS essentially reflects the transformation of DeFi protocols from 'barbaric growth' to 'value creation'. When governance rights, income incentives, and cross-chain compatibility work together, those platform tokens that can continuously expand application scenarios and establish real user demand may dominate the next wave of DeFi.
