Algorand Market Cap And TVL Skyrocket As ALGO Faces Critical Support Test
09 Maggio 2024 - 2:00AM
NEWSBTC
Blockchain platform Algorand achieved notable gains in key metrics
during the year’s first quarter (Q1), aligning with the overall
upward trend observed in the crypto market ecosystem.
However, despite this growth, its native token ALGO experienced a
22% price decrease since the beginning of Q2, putting a critical
support line to the test and raising questions about the
cryptocurrency’s prospects. Algorand Revenue Skyrockets According
to a report by Messari, Algorand’s revenue witnessed a substantial
1,747% quarter-on-quarter (QoQ) surge, primarily driven by a 288%
increase in transactions and a 50% rise in the average price
throughout the quarter. The Orange memecoin project also
contributed to this growth. In Q1 2024, ALGO’s commitment to
governance on the Algorand platform declined by 60% year-on-year
(YoY) and 3% Quarter-on-Quarter, reaching its lowest level in a
year at 1.7 billion ALGO staked. Per the report, this
downturn can be attributed, at least in part, to the diminishing
governance rewards allocated per governance period. For example,
governance participants received 68.2 million ALGO in Q1 2023, but
this figure dropped significantly to only 21.9 million ALGO in Q1
2024. Related Reading: Forget The Price Dip: Ethereum Network
Activity Hints At Imminent Takeoff The market cap for stablecoins
on the Algorand platform declined 6% QoQ to $73 million. Circle’s
USDC market cap on Algorand decreased by approximately 9% QoQ to
$50 million. In contrast, Tether’s USDT stablecoin market cap
remained stable during the same period with no QoQ change, although
it recovered 2% of the stablecoin market share. Consequently,
USDC’s market share decreased by 3% to 68% QoQ, while USDT’s market
share increased by 2% to encompass 30% of Algorand’s total
stablecoin market cap. Algorand’s DeFi TVL And Market Cap Lead The
Pack Algorand’s total decentralized finance (DeFi) total value
locked (TVL) witnessed growth for the second consecutive quarter,
rising by 9% QoQ to $130 million. Although TVL experienced a
decline in Q3’23 due to Algofi’s deprecation, the entire DeFi
market on Algorand rebounded and surpassed Q2’23 levels, nearly
reaching the levels seen in Q1’23. Folks Finance retained its
position as the top DeFi protocol by TVL on Algorand. Even though
its TVL fell by 5% QoQ in Q1, it maintained just over 50% market
share. Pact and Tinyman also demonstrated noteworthy gains,
capturing approximately 15% and 18% of the DeFi TVL market share in
Q1. AlgoRai Finance experienced the most substantial growth, with a
remarkable 53% increase in its TVL QoQ. Lastly, during Q1,
Algorand’s market cap expanded by 18% QoQ, reaching $2.1 billion.
The global crypto market cap also witnessed significant growth
during the same period, nearing all-time highs of around $3
trillion, denoting a 50% increase from the previous quarter.
Although Algorand capitalized on this upward trend with an 18%
increase in its market cap, it experienced a more substantial surge
of 123% in the preceding quarter. Testing Key Support Levels ALGO’s
performance in the early stages of the second quarter has been
predominantly bearish. Currently, the token is trading at $0.1935,
with a possibility of further testing the support line at
$0.1904. A breach of this level could lead to a continuation
of the decline towards the next support at $0.1789. Related
Reading: Fundstrat CEO Predicts When Bitcoin Price Will Reach
$150,000 And $500,000 On the upside, the $0.1988 zone presents a
significant resistance level for ALGO. Notably, the token has
attempted to surpass this threshold three times in the past 10 days
without success. Featured image from Shutterstock, chart from
TradingView.com
Grafico Azioni Algorand (COIN:ALGOUSD)
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Da Ott 2024 a Nov 2024
Grafico Azioni Algorand (COIN:ALGOUSD)
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Da Nov 2023 a Nov 2024