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VVS Finance Price Prediction: What’s on the DEX? The largest project on the Cronos chain, VVS Finance (which stands for “Very, Very Simple” Finance) aims to increase the speed of mainstream cryptocurrency transactions.
Through easy-to-use interfaces and gamification, decentralized exchanges (DEXs) try to attract users with less experience in the crypto world and decentralized finance (DeFi).
According to official documents, the Indian VVS team is “determined to build DeFi products for our aunties and neighbors, aiming to bring amazing protocols to the masses.”
But does this project have legs? What is the price prediction for VVS Finance? Before looking at the forecast, it is worth taking a quick look at the VVS token.
What is VVS Finance (VVS)?
Powered by blockchain accelerator startup Particle B, VVS Finance is the 24th largest decentralized cryptocurrency exchange (as of June 17, 2022) and offers a range of features including staking, trading and swaps.
The crypto project, which bills itself as the “gateway to the decentralized finance movement,” ultimately aims to reach billions of people. Although the founder of the cryptocurrency is anonymous, the project is backed by Crypto.com.
According to the VVS Finance website, users can earn income from trading because they are both liquidity providers and VVS miners.
According to the site, liquidity providers offering a pair of assets can earn liquidity provider (LP) tokens as proof of ownership. Depending on the liquidity they provide, they can earn 0.2% trading fees when trading pairs. Additionally, Liquidity Provider (LP) token holders can use them to earn VVS rewards.
The VVS token will also be used as a future governance token, allowing holders to vote on the future development of the protocol.
VVS Finance is an automated market maker DEX. In automated market makers (AMMs), liquidity pools allow digital assets to be traded without authorization and without a centralized structure, so there is no single entity controlling the system. Unlike traditional trading practices, these liquidity pools also allow 24/7 trading.
In the beginning, the liquidity of cryptocurrencies was low because there were not as many buyers and sellers. Liquidity pools, where liquidity providers artificially create liquidity by paying fees in exchange for the custody of their assets to increase liquidity, solve this problem.
AMM uses mathematical formulas to ensure that assets in a liquidity pool remain in constant balance, which in theory helps regulate the price of assets in a liquidity pool.
When the price of an automated market maker differs too much from the market price on other exchanges, traders are incentivized to take advantage of the price difference to achieve a perceived balance.
Inflationary Issues
In late February, the exchange sparked controversy over questionable token economics. The current circulating supply of VVS tokens is close to 19 trillion, which is a huge number compared to other DEXs. For example, SushiSwap has only 127.2 million, while Uniswap has about 720 million.
The inflationary nature of the coin has raised concerns among investors. Especially since the supply in circulation is close to 19 trillion, but is expected to increase to 100 trillion over time. With so many coins in circulation, maintaining a high value per coin can be very difficult, especially if the DEX is not attracting a large number of traders to its platform.
So how will this information affect VVS Finance’s price forecast for 2022? Before looking at the predictions, let’s review the performance of VVS.
Recent Token Performance
The coin surged immediately after launch, rising from $0.0001123 on November 22, 2021 to $0.0001542 on November 24, 2021. The VVS token then dropped to $0.0001154 on Nov 26, 2021, then closed on Nov 26, 2021, and rebounded to $0.0001442 on Dec 3, 2021. Throughout December, the VVS price started rising and falling and in 2021 It fell to $0.00006827 on December 13, and then fell further to $0.00002382 on January 22, 2022. The coin then surged to $0.00004303 on February 10, 2022, before falling to $0.0000263 on February 24.
On March 18, the coin was trading at a low of $0.00002126. However, prices recovered as the broader crypto market showed brief signs of recovery towards the end of the first quarter of 2021. On March 28, the coin was trading at $0.00002833, but the rise was unsustainable. The cryptocurrency continued to fall and closed April at $0.00001949.
The market crash in May sent the coin to new lows. Over the next few weeks, VVS is in a strong downtrend. The flash crash killed an already volatile market, spooked investors, and pushed the coin’s value to an all-time low of $0.00000516 on June 15. On June 17 and at the time of writing, the coin was trading at $0.00000564.
The token has a maximum supply of 100 trillion and the current circulating supply is close to 19 trillion (19%). The coin currently has a market cap of around $106 million, making it the 246th largest cryptocurrency by this metric.
How does this information affect VVS Finance’s price forecasts?
VVS Finance Price Prediction – Expert Opinion
While forecasts may help indicate which direction the price of a coin or token is likely to go, it’s important to remember that they should be viewed as probabilities rather than absolute values. This is especially true when looking at long-term forecasts, which can sometimes be completely wrong. This is due to the inherent volatility of the crypto market, as well as the many unknown factors that may affect future prices.
With that in mind, let’s take a look at some price predictions from VVS Finance.
WalletInvestor gave a bearish prediction that VVS could fall to $0.000000381 within a year (93% from current trading value) and not recover, suggesting the coin is a “bad long-term investment.”
Gov.Capital shares a similar sentiment and predicts that the token will lose all value in the next 12 months.
Meanwhile, DigitalCoinPrice hinted that VVS Finance could reach a price of $0.00000846 in July, a 50% increase. The site forecasts an average valuation of $0.00000809 in 2023 (up 43%) and $0.00000821 in 2024 (up 46%). The site’s VVS Finance price forecast for 2025 is $0.0000109 (almost double the current value) and hints at $0.0000258 by 2030 (up 360%).
Another VVS Finance price prediction for 2030 can be found at PricePrediction.net, which has a more optimistic long-term forecast of $0.00022966, implying an ROI of nearly 4,000%.
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VVS Finance has a maximum supply of 100 trillion VVS tokens, and the current circulating supply is close to 19 trillion VVS.
Forecasters seem to think the coin is not the best investment. As a highly inflationary token in a very saturated market, the protocol has underperformed since its inception. In addition to this, it is heavily backed by very established crypto companies like Crypto.com and Cronos Blockchain.
However, it is important to note that cryptocurrencies are highly volatile assets, and it should be remembered that analyst forecasts may be wrong.
It could go up, although some experts think it could go down. Always remember that forecasts, especially long-term forecasts, should be viewed as indicators, not absolute values. Cryptocurrencies are very volatile assets. It’s important to remember that analysts’ forecasts can be wrong.
Investing is a very personal job. Do your own research and stay abreast of any developments in the VVS financial ecosystem that may improve or weaken its prospects.
Remember that investing can be risky. Do your own research. Never invest money that you can’t afford to lose.
