Onyxcoin (XCN): 800% leap and the future of DeFi lending
Onyxcoin architecture
Onyxcoin (XCN) is a management and utility token designed for decentralized financial (DeFi) solutions in the Onyx ecosystem. The network's core functionality includes peer-to-peer lending and borrowing of digital assets. Unlike traditional platforms such as Aave or Compound, Onyxcoin uses a unified balance sheet model, meaning users can pool assets of different standards (ERC-20, ERC-721, ERC-1155) in a single pool.
The operating principle of the Onyxcoin platform is based on smart contracts that manage assets without intermediaries. This increases the security of transactions and reduces commissions. For example, liquidity users can earn interest income comparable to or higher than bank rates (5-15% per annum, depending on the token and blockchain term).
Unlike peers such as MakerDAO, Onyx does not require mandatory collateral in ETH tokens but allows lenders to provide any combination of assets. This makes the system more flexible but requires a more sophisticated liquidity control mechanism implemented through "issuance programs" and "management programs."
XCN's 800% rise: causes and consequences
In January 2025, the price of Onyxcoin (XCN) soared more than 800%, reaching $0.0293 — the highest in the last two years. The main reason for the rise was the resolution of a legal dispute between Onyx and the leading cryptocurrency exchange, HTX Global (formerly Huobi). In 2022, HTX Global claimed to have uncovered repeated instances of suspicious Onyxcoin market activity, including pump-and-dump schemes, which led to XCN being added to a watch list for possible delisting.
However, according to OIP-51 (Onyx Improvement Proposal), the HTX exchange has not only added support for XCN but has also begun actively utilizing it in its infrastructure.
In addition, XCN's trading volume increased 270% overnight to $1.4 billion, a record high for Onyx, which previously rarely broke the $500 million daily turnover mark. A similar trend was seen for the Dogecoin memcoin in 2021, when its trading volume grew from $1 billion to $12 billion amid interest from Elon Musk and large investors.
Another significant factor in XCN's growth was the 24% increase in open interest in futures, reaching $20.7 million. Bybit exchange recorded the most crucial number of open contracts, indicating the growing interest of institutional investors in XCN. According to CoinDesk analyst John Moore, the rise in open interest indicates a "new bull cycle forming" for XCN.
Onyx partnerships and initiatives: a boost to growth
One of the key drivers of XCN's growth has been its partnership with Chain, a significant blockchain platform for enterprise solutions. Through this partnership, Chain customers can use XCN to pay for products at a 30% discount, significantly increasing interest in the token.
In addition, OnyxDAO initiated a token burn program, which reduced its overall supply and increased the value of the remaining coins. Binance (BNB) used a similar strategy, increasing its price from $20 to $600 within two years.
DAO Onyx has also implemented a Gas Refund, through which users can be compensated for transactions within the network. For example, transferring XCN over $100 can get up to 5% commission back. This is especially beneficial for active traders and DeFi users.
Predictions on XCN: will the token reach $1.25?
Experts predict that XCN could reach $1.25 in 2025, equivalent to an increase of 42 times the current price. This is based on several factors:
- Reducing the supply of XCN by burning it (a similar practice led to Ethereum's growth after the implementation of EIP-155 — Ethereum Improvement Proposal 1559).
- Interest from institutional investors (e.g., BlackRock is already considering investing in XCN).
- Growth in the overall cryptocurrency market. If Bitcoin (BTC) continues to grow in 2025, this could also create a bull market effect for XCN.
However, there are also risks to consider. For example, the high volatility of the crypto market may lead to sharp corrections, and regulatory risks (for example, possible bans on DeFi protocols in the US) may slow down the development of Onyx.