Algorand (ALGO) Sees 15% Growth After TVL Records New Milestone
Among all Layer-1 blockchain protocols, Algorand is one of the most promising ones, whose value has risen since the start of the year. Despite a slight price drop in the past 24 hours, Algorand’s native token, ALGO, has scored a 14.6% growth over the past 14 days to maintain its steady start to 2023.
According to reports, ALGO’s week-to-date price stability has much to do with its special decentralized finance (DeFi) activities during the same timeframe.
The network has experienced a significant uptick in its total value locked (TVL), which currently stands at $164.42 million per current on-chain data from DefiLlama. The amount represents a massive jump from its $17.12 million TVL at the start of January.
By its design, Algorand is a highly functional proof-of-stake (PoS) protocol but has yet to lead intense DeFi projects compared to other networks. Due to the spike in Algorand’s DeFi TVL in the past week, sentiments about the network’s prospects have been positive.
Meanwhile, one of the most critical applications running on the Algorand network is Algofi which has a TVL of $108.82 million. The application controls 66% of the blockchain’s overall operations, and its importance to the network is enormous.
Other applications that also play a part in Algorand’s function include Lofty, Folks, and Finance. Despite not being known to charge a gas fee, Algorand recently announced that it intends to introduce transaction fees.
The gas fees will run through smart contracts within its blockchain ecosystem, and they will be automatically processed. After verification, the costs would be used to buy carbon credits at ClimateTrade, a carbon offset blockchain marketplace.
In April 2022, the CEO of Algorand Foundation, Staci Warden, revealed that the proposed transaction fees could allow the network to accelerate its scaling drive and remain carbon negative. Warden explained that the smart contract ensures that all the blockchain components are eco-friendly long-term.
A Slow And Steady Growth
Despite being perceived as a low-achieving blockchain, Algorand has made great efforts to put up with the challenging industry. The development team has been up and running by building valuable DeFi-based applications and projects for the blockchain.
One of the most impressive applications recently developed is the C3 Protocol, a self-custodial exchange. The C3 Protocol is designed to change the market direction of the Algorand ecosystem, and experts believe this is just one of the several projects the Protocol plans to launch this year.
In October 2022, the Cardano founder, Charles Hoskinson, disclosed that Algorand is currently accessible on the Cardano protocol, which paves the way for blockchain interoperability between the two networks.
The network has recorded steady growth in recent months, even as the broader crypto market struggled with a bear trend for most of last year. Its expansion and upgrades haven’t made the headlines due to its status as one of the least-performing blockchain platforms.
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