Key Takeaways
- Liquidity is flooding into Algorand’s DeFi ecosystem. The total value locked on Algorand hit $270 million for the first time today.
- Hivemind Capital deployed $25 million worth of capital in Algorand DeFi, giving the ecosystem a liquidity injection.
- Several other catalysts have helped Algorand boom ahead of other projects, but the rise may be shortlived due to the macro climate.
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Crypto investment firm Hivemind deploying $25 million into Algorand DeFi is one of several catalysts attracting liquidity to the Layer 1 chain.
Algorand Receives VC Boost
A new cash injection has helped raise DeFi activity on Algorand.
Money flowing into the Layer 1 blockchain’s ecosystem has soared this week following an announcement 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 data, 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.
More Algorand Catalysts
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…
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