VVS Finance price prediction: What’s in store for the DEX?

Since launch, VVS Finance has been stuck in a bearish trend. Is a turnaround due?

Representation of two separate holographic chains morphing into a handshake                                 
Holders of the VVS token can earn rewards through trading and staking, according to VVS Finance’s website – Credit: Shutterstock
                                

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The largest project on the Cronos chain, VVS Finance (which stands for “very, very simple” finance) aims to increase the rate of crypto trading in the mainstream.

With an easy-to-use interface and gamification, the decentralised exchange (DEX) is attempting to attract users with less experience in the crypto world and decentralised finance (DeFi).

According to official literature, the Indian VVS team is “determined to build DeFi products for our aunts and neighbours, with a goal of bringing amazing protocols to the masses”.

But does the project have legs? What is the VVS Finance price prediction? Before looking at the forecasts, it’s worth taking a quick overview of the VVS token.

What is VVS Finance (VVS)?

Backed by blockchain accelerator start-up Particle B, VVS Finance is ranked the 24th-largest cryptocurrency decentralised exchange (as of 17 June 2022) and provides a range of capabilities including staking, trading and swaps.

Calling itself the “gateway to the decentralised finance movement”, the crypto project ultimately wants to reach billions of people. Despite the crypto’s founders being anonymous, the project is supported by Crypto.com.

According to VVS Finance’s website, users can earn income through trading, being both a liquidity provider and a VVS miner.

Liquidity providers who provide a pair of assets can, according to the website, receive Liquidity Provider (LP) tokens as proof of ownership. According to how much liquidity they have supplied, they can earn 0.2% transaction fees when the pair is traded. In addition, holders of liquidity provider (LP) tokens can stake them to receive VVS rewards.

The VVS token will also be used in the future as a governance token so that holders can vote on future developments in the protocol.

VVS Finance is an automated market maker DEX. In automated market makers (AMMs), liquidity pools allow digital assets to be traded without permission and without a centralised structure, so no single entity controls the system. These liquidity pools also allow for 24/7 trading, unlike legacy trading practices.

In the beginning, cryptocurrencies had low liquidity as there weren’t as many buyers and sellers. Liquidity pools, where liquidity providers artificially created liquidity by being paid a fee in exchange for depositing their assets to contribute to liquidity, solved this problem.

AMMs use a mathematical formula to ensure there is a constant balance of assets in the liquidity pools which, in theory, helps to regulate prices of assets in liquidity pools.

If prices in automated market makers diverge too much from market price on other exchanges, traders are given incentives to take advantage of the price difference, leading back to supposed equilibrium.

Inflationary issues

In late February the exchange sparked controversy due to questionable tokenomics. The current circulating supply of VVS token is almost 19 trillion, which is a huge number of coins when compared with other DEXs. SushiSwap, for example, only has 127.2 million, while Uniswap has around 720 million.

The inflationary nature of the token has drawn concern from investors. Especially since, while there is a circulating supply of almost 19 trillion, this is due to increase to 100 trillion over the course of time. With so many coins in circulation, keeping the value of each coin high could be quite difficult, especially if the DEX does not attract huge amounts of traders to its platform.

So how will this information impact a VVS Finance price prediction for 2022? Before looking at the forecasts, let’s first review the performance of VVS.

Recent token performance

The coin rose immediately after launch, increasing from $0.0001123 on 22 November 2021 to $0.0001542 on 24 November 2021. The VVS coin subsequently dipped to $0.0001154 on 26 November 2021, before rising again to $0.0001442 on 3 December 2021. Throughout December the VVS price began to fall, slipping to $0.00006827 on 13 December 2021, before falling further to $0.00002382 on 22 January 2022. The coin subsequently rose to $0.00004303 on 10 February 2022 before slipping to $0.0000263 on 24 February.

By 18 March, the coin was trading at lows of $0.00002126. However as the broader crypto markets showed fleeting signs of a recovery towards the end of the first quarter of 2021, the pricing picked up. On 28 March, the coin was trading at $0.00002833, but the hike was not sustainable. The crypto fell further and closed the month of April at $0.00001949.

A market-wide crash in May saw the token sink to new lows. VVS was on a stark downtrend in the following weeks. Flash crashes throttled the already volatile markets, spooking investors and causing the value of the token to hit a new all-time low of $0.00000516 on 15 June. As of 17 June and at the time of writing, the token was trading at $0.00000564. 

The coin has a maximum supply of 100 trillion coins and a current circulating supply of almost 19 trillion (19%). The coin has a current market cap of about $106m, making it the 246th-largest crypto by that metric.

How does this information impact a VVS Finance price prediction?

VVS price prediction – expert opinion

While forecasts can be helpful as an indicator of which direction the price of a coin or token may move, it’s important to remember they should be viewed as possibilities rather than absolutes. This is especially the case when considering long-term forecasts, as these can sometimes be completely off the mark. This is because of the inherent volatility of the crypto market, but also the many unknowns that could affect future prices.

With this in mind, let’s look at some VVS Finance price predictions.

WalletInvestor offers a bearish forecast suggesting VVS could go down to $0.000000381 (a 93% decrease from the current trading value) in a year’s time and not recover, suggesting the coin is a ‘bad long-term investment’. 

Gov.Capital has a similar sentiment, predicting the coin will lose all value over the next 12 months. 

Meanwhile, DigitalCoinPrice suggests that VVS Finance could achieve a price of $0.00000846 in July, representing a 50% upswing. The site forecasts an average valuation of $0.00000809 in 2023 (up 43%) and $0.00000821 in 2024 (up 46%). The website’s VVS Finance price prediction for 2025 is $0.0000109 (almost double the current value) and it suggests it will rise to $0.0000258 by 2030 (up 360%).

Another VVS Finance price prediction for 2030 can be found from PricePrediction.net, which makes a more bullish long-term projection of $0.00022966, representing an almost 4,000% return on investment.

FAQs

VVS Finance has a maximum supply of 100 trillion VVS tokens and a current circulating supply of almost 19 trillion VVS.

It would appear that forecasters seem to think the coin is not a good investment. As a highly inflationary coin in a very saturated market, the protocol has not perfomed very well since its launch. Saying that, it has solid backing from 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 analysts’ forecasts can be wrong. 

It could go up, although some experts suggest it might go down. Always remember that forecasts, especially longer-term ones, should be viewed as indicators rather than absolutes. Cryptocurrencies are highly volatile assets. It’s important to bear in mind that analysts’ forecasts can be wrong. 

Investing is a highly personal endeavour. Do your own research and keep up to date on any developments in the VVS Finance ecoystem that could boost or dampen its prospects.

Remember, investing can be risky. Conduct your own research. And never invest money that you cannot afford to lose.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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