Insurance
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7d Change
| 7d Chart | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
240 NXM 240Nexus Mutual | $50.10 | −0.85% | 2.39% | 2.79% | $85.00 M | $85.00 M | $0.00 | |||
3773 DIP 3773Etherisc DIP Token | $0.001107 | −2.42% | −13.84% | −12.18% | $265,394.51 | $1.11 M | $75.14 | |||
4010 UNN 4010UNION | $0.000213 | −1.89% | −1.72% | −1.60% | $213,000.00 | $213,000.00 | $80.90 | |||
4599 ARMOR 4599ARMOR | $0.0001736 | −0.39% | 0.59% | 2.89% | $130,200.00 | $130,200.00 | $8.78 | |||
8976 TIDAL 8976Tidal Finance | $0.00000222 | −15.19% | −13.55% | −37.82% | $1,920.80 | $44,040.36 | $24.32 | |||
9256 ARNXM 9256Armor NXM | $48.13 | −0.90% | 0.57% | 7.38% | -- | -- | $6.76 | |||
10030 SAFO 10030SafeOne Chain | $0.00001995 | 0.02% | −48.00% | −45.39% | -- | $5,047.27 | $1.95 |
Frequently Asked Questions
What is Insurance (DeFi cover) in crypto?
Crypto insurance — also called DeFi "cover" — refers to decentralized protocols where token-holders pool capital to underwrite on-chain risks such as smart-contract exploits, custody failure, stablecoin depeg, and validator slashing. Crypto insurance is not traditional car, health, or life insurance, and it is not exchange custodial insurance. Decentralized cover matters because DeFi is exploit-prone: cover is the risk-transfer layer that lets capital stay on-chain with a hedge. Nexus Mutual (NXM) has operated as the sector's largest protocol since 2019.
How does DeFi insurance work — cover, underwriting, and claims assessment?
DeFi insurance works by replacing a traditional insurer with a mutual or DAO of token-holders that supplies the capital pool, prices risk, and settles claims. Two models dominate. Discretionary mutuals assess claims by member or expert vote — Nexus Mutual (NXM) uses this approach. Parametric protocols pay out automatically when preset data triggers fire — Etherisc (DIP) pioneered this. Buyers pay a premium for a cover amount over a fixed term, and approved claims draw from the shared capital pool.
Which projects lead the crypto insurance category?
Per DropsTab data, Nexus Mutual (NXM) leads the crypto insurance category as the largest and longest-running protocol, member-owned and operating since 2019. Etherisc (DIP) ranks second in relevance as the pioneer of parametric, data-triggered cover. Smaller tokens — UNION (UNN), Nsure Network (NSURE), and InsureDAO (INSURE) — carry limited public documentation and activity, and several are largely dormant. The crypto insurance category is thin and concentrated. DropsTab's category scanner lets you filter these cover tokens side by side.
Is Nexus Mutual (NXM) the biggest crypto insurance token?
Yes. Nexus Mutual (NXM) is the largest and most-established crypto insurance protocol, operating as a member-owned DAO since 2019. The mutual generated roughly $5.7M in cover fees and about $14.3M in net cash flow in 2025, and paid over $370K in 2025 claims. Nexus Mutual has settled historical claims for the Rari Capital, Cream Finance, and Hodlnaut incidents. In 2025 the protocol moved to a "v3" expert-led claims model, tightening its earlier discretionary member voting.
What is the difference between NXM, wNXM, and ARNXM (wrapped Nexus Mutual)?
Native NXM is member-only and non-transferable — restricted to KYC-verified Nexus Mutual members. Wrapped NXM (wNXM) is a 1:1 freely-transferable wrapper of NXM that trades on open markets without membership. Armor NXM (ARNXM) is different again: a yield-bearing vault token from Armor, not an independent insurer and not a rival protocol. wNXM and ARNXM are distinct instruments despite frequently being conflated. DropsTab lists each under its own name — disambiguate by name, not by similar tickers.
How is the crypto insurance sector measured — by market cap, TVL, and claims?
Market Cap alone misleads in crypto insurance because the sector is thin and several tokens are illiquid or dormant. Analysts weigh structural metrics instead: capital pool or TVL (Total Value Locked), active cover amount (live underwritten exposure), claims paid (proven payout record), and premiums earned. Solvency-style ratios — capital pool versus active cover — show whether a protocol can honor claims. For governance holders, staking yield and capacity utilization matter. Data is fragmented across project dashboards and DeFiLlama.
Is crypto insurance the same as exchange or custodial insurance?
No. Crypto insurance in this category means decentralized on-chain cover protocols, not the custodial insurance an exchange holds. Exchange or custodial insurance is a centralized reserve fund a platform maintains to reimburse users after a hack or failure. Decentralized cover, by contrast, is user-purchased protection underwritten by a token-holder capital pool — the buyer chooses the cover and files claims directly. This category also excludes traditional car, health, and life insurance entirely.
What are the risks of investing in crypto insurance tokens?
Crypto insurance is thin and concentrated — Nexus Mutual (NXM) dominates while most other tokens are illiquid, dormant, or thinly documented, creating concentration and liquidity risk. Discretionary claims models carry governance risk: member or expert votes can deny valid claims. Cover protocols face the same smart-contract risk they underwrite, and correlated sector-wide exploits can stress capital-pool solvency. Regulatory exposure is real — "insurance" is a regulated term, and mutual and parametric structures sit in a legal gray zone.
Why is decentralized insurance growing in 2025–2026?
Demand for on-chain cover tracks DeFi's exploit tempo — each major hack renews interest in risk transfer. Nexus Mutual's 2025 "v3" shift toward permissioned, expert-led claims signals maturation from pure member voting toward capital efficiency. Third-party estimates project decentralized-insurance growth from roughly $3.5B in 2025 toward about $17B by 2029 — figures are fragmented and directional, not precise. Near-term catalysts include RWA and institutional on-chain exposure needing cover, plus parametric depeg and slashing products.