On Algorand, the total value of locking in DeFi protocols has reached an all-time high of $270 million.
Hivemind, a crypto investment firm, has invested $25 million in Algorand DeFi, one of numerous triggers drawing liquidity to the Layer 1 chain.
Algorand Receives VC Funding
A fresh financial inflow has boosted DeFi activity on Algorand.
Following the revelation that Hivemind Capital has deployed 80 million ALGO tokens towards different DeFi and governance projects across the Algorand ecosystem, money has poured into the Layer 1 blockchain’s ecosystem this week. Hivemind’s pledge totals more than $25 million at the current price of $0.31 per ALGO token.
Following Hivemind’s release, the total value locked in DeFi applications on Layer 1 surpassed $270 million for the first time in blockchain history today. According to DeFiLlama statistics, the total value locked on Algorand has increased by 53.95% this week, benefiting numerous Algorand-based DeFi protocols. Decentralized exchanges like as Tinyman and Pact have increased their total value locked by double digits in the last 24 hours, while AlgoFi, a one-stop shop for lending, borrowing, and trading, has increased by more than 17%.
The news was also well received by Algorand’s ALGO coin. After falling in response to Thursday’s hotter-than-expected CPI figure, it rebounded by more than 10%, aided by a broader market bounce.
Additional Algorand Catalysts
The dedication of Hivemind to Algorand’s DeFi ecosystem is not the only factor driving interest in the Layer 1 chain. In other news, the digital collectibles trading program FIFA+ Collect has drawn a swarm of soccer lovers to Algorand since its September 22 launch. FIFA+ Collect allows players to compile unforgettable moments from the greatest FIFA matches in history and exchange them with other FIFA+ Collect users via the FIFA+ Collect marketplace. The platform has sold over 158,000 packets so far through its genesis drop. Interest in FIFA+ Collect is set to grow in the run-up to the FIFA World Cup in November.
Another significant development in the Algorand ecosystem is FTX’s commitment to enable native USDC. Users may now deposit and withdraw USDC stablecoins from the Algorand blockchain directly to their exchange wallet. Previously, only ALGO token transactions were supported by FTX. The upgrade simplifies the process of depositing dollar-denominated money onto Algorand for usage in the blockchain’s DeFi ecosystem or on FIFA+ Collect.
Algorand has also acquired various agreements throughout the world. In the Philippines, fintech firm AID:Tech is developing a mobile banking wallet solution based on the Algorand blockchain. El Salvador, which made news last year when it became the first country to legalize Bitcoin, has also designated Algorand as its official blockchain partner.
Italian Algorand adoption
Recently, Italy’s central bank announced plans to use the Algorand blockchain for a future central bank digital currency in a new July report.
With so many positive catalysts driving adoption, it’s little surprise that Algorand has grown even while activity on rival Layer 1 chains has decreased. The total value locked in protocols on Algorand has climbed by 269% since the beginning of the year. In comparison, the entire value locked on Avalanche has decreased by 86%, while Solana has decreased by 85%. Still, with global macroeconomic instability showing no signs of abating, Algorand may struggle to maintain its current growth rate in the future.
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