Crypto Briefing | Oct 16, 2022 02:21AM ET
The total valued locking in DeFi protocols on Algorand has hit a new all-time high of $270 million. Crypto investment firm Hivemind deploying $25 million into Algorand DeFi is one of several catalysts attracting liquidity to the Layer 1 chain. A new cash injection has helped raise DeFi activity in ALGO/USD.
Money flowing into the Layer 1 blockchain’s ecosystem has soared this week following that Hivemind Capital had deployed 80 million ALGO tokens into various DeFi and governance programs across the Algorand ecosystem. At the current price of $0.31 per ALGO token, Hivemind’s commitment totals more than $25 million.
Following Hivemind’s announcement, the total value locked in DeFi apps on the Layer 1 hit a new all-time high, topping $270 million for the first time in the blockchain’s history today. Per DeFiLlama , the total value locked on Algorand has jumped 53.95% this week, and several Algorand-based DeFi protocols have benefited from the boost in liquidity. Decentralized exchanges such as Tinyman and Pact have registered double-digit gains to their total value locked over the past 24 hours, while AlgoFi, a one-stop shop for lending, borrowing, and trading, has shot up over 17%.
Algorand’s ALGO token also reacted favorably to the news. After suffering a dip in response to Thursday’s hotter-than-expected CPI print, it jumped over 10%, helped by a broader market recovery.
Hivemind’s commitment to Algorand’s DeFi ecosystem is not the only tailwind spurring interest in the Layer 1 chain. Elsewhere, the digital collectibles trading app FIFA+ Collect has brought a wave of soccer fans to Algorand since it launched on September 22. FIFA+ Collect lets users assemble memorable moments from the top matches in FIFA history and trade them with other users through the FIFA+ Collect marketplace. So far, the platform has sold over 158,000 packs through its genesis drop. It’s likely interest in FIFA+ Collect will continue to increase in the build-up to the FIFA World Cup in November.
Another notable update for the Algorand ecosystem is FTX’s decision to support native USDC. Users can now deposit and withdraw USDC stablecoins directly between the Algorand blockchain and their exchange wallet. FTX previously only supported ALGO token transactions. The update makes it easier for FTX users to deposit dollar-denominated funds onto Algorand for use in the blockchain’s DeFi ecosystem or on FIFA+ Collect.
More broadly, Algorand has also secured several partnerships across the globe. In the Philippines, fintech company revealed plans to leverage the Algorand blockchain for a possible central bank digital currency.
With so many positive catalysts spurring adoption, it’s not surprising that Algorand has continued to grow while activity on other Layer 1 chains declines. Since the start of the year, the total value locked in protocols on Algorand has increased by 269%. In comparison, the total value locked on Avalanche has dropped by 86%, while Solana is down 85%. Still, with global macroeconomic turmoil showing no signs of letting up, it may be difficult for Algorand to continue growing at a similar pace.
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