There are always going to exist risks involved when interacting with cryptocurrencies, and recent proof of this can be seen over the past few weeks after savvy hackers managed to abscond with millions of dollars worth of tokens from BitMart, AscendEX and BadgerDAO commutation.

Nexus Mutual is a decentralized platform that allows investors to secure insurance coverage against smart contract exploits, and today, its token, WNXM, rallied past 38% even as Bitcoin (BTC) and the wider crypto marketplace continue to correct.

Data from Cointelegraph Markets Pro and TradingView shows that after striking a depression of $46.59 on Dec. 13, WNXM's price spiked 38% to a daily loftier at $69.22 on Dec. 14.

WNXM/USDT 4-hour chart. Source: TradingView

3 reasons for the sudden price reversal of WNXM include a serial of new partnerships and integrations with the Nexus Mutual protocol, an increasing full value locked within the Nexus Mutual ecosystem, and the projection's power to successfully provide coverage to victims of protocol exploits, which involved the loss of funds.

Partnerships expand the Nexus Mutual ecosystem

New partnerships and protocol integration with various decentralized finance (DeFi) platforms appear to be one of the driving factors behind WNXM'south electric current recovery.

Recently, the developers behind Nexus Mutual held community calls with mStable, Balancer Labs, Alpaca Finance, Notional Finance and PoolTogether.

The project has also seen a steady rise in the number of encompass policies purchased, and within the terminal week, a few multi-one thousand thousand-dollar policies were opened on Curve, Anchor, Stake DAO and OlympusDAO.

Calendar week-over-week increases in Nexus Mutual policies. Source: Twitter

As shown in the chart above, Nexus Mutual saw a 53% increase in the number of policies sold between Nov. 22 and Nov. 29, and the total value of the coverage offered increased by 121%. The increase in usage resulted in a 125.8% increase in the premiums earned past the protocol.

Total value locked is on the rise

The total value locked (TVL) on Nexus Mutual has also risen within the concluding six months, and information from Defi Llama shows the metric hitting a high of $780.58 million on Nov. 9. Currently, the TVL on Nexus Mutual sits at $585.33 meg, which is reflective of the sharp market-broad downturn that started last week.

Total value locked on Nexus Mutual. Source: Defi Llama

Protocol users accept the option of staking NXM tokens with projects they recollect are secure as the fiscal backing for the coverage provided. In exchange for funding the coverage, users receive a yield on their staked tokens and a electric current average APY of 4.96%.

According to the data provided by the Nexus Mutual app, there is currently $one.1 billion staked through the protocol, $25.5 meg in coverage purchased and $12.7 1000000 in rewards paid out.

Related: 'DeFi is the most dangerous part of the crypto world,' says Senator Elizabeth Warren

Satisfied customers are practiced for business concern

A third reason for the growing forcefulness of Nexus Mutual and the cost appreciation of WNXM has been the proven track record of making victims whole subsequently they lose money to a smart contract exploit or protocol hack.

I of the DeFi platforms that had Nexus Mutual coverage prior to an exploit of $100 million was Foam Finance, a protocol that has suffered dorsum-to-dorsum losses in 2022 due to hacks and flash loan exploits.

Luckily for those who had purchased coverage prior to the exploit, the Nexus Mutual community has paid out multiple claims for lost funds.

VORTECS™ data from Cointelegraph Markets Pro as well began to detect a bullish outlook for WNXM on Dec. 11 prior to the recent price rising.

The VORTECS™ Score, sectional to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading book, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. WNXM price. Source: Cointelegraph Markets Pro

Equally seen in the chart above, the VORTECS™ Score for WNXM climbed into the light-green zone on Dec. 11 and reached a loftier of 77 around 57 hours before the toll increased 49% over the side by side day.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves take chances, y'all should conduct your ain research when making a decision.