Algorand’s TVL increased, but revenues and fees fell slightly.
The price of ALGO plummeted dramatically and negative sentiment peaked last week.
algorithm [ALGO] registered a double-digit increase in its network value in the past 24 hours alone. According to DeFiLlama, Algorand’s TVL was up more than 12%, which was surprising given the bearish market at press time.
Read from Algorand [ALGO] Price prediction 2023-24
This caused the wave!
One reason for this sudden increase can be attributed to Alogrand’s latest announcement. According to a tweet dated April 20, the Algorand Foundation has deployed 36 million ALGO for Algorand’s own credit markets, optics vaults and algo/galgo liquidity.
— Algorand Foundation (@AlgoFoundation) April 20, 2023
Algorand said the purpose of this allocation is to contribute to ecosystem liquidity and support TVL’s growth. The effects were reflected on the chart fairly quickly, as evidenced by Algorand’s TVL growth over the past 24 hours.
Can it affect other important metrics?
While Algorand’s TVL has risen significantly, the same cannot be said for the network’s rates, which have fallen in recent weeks, according to Token Terminal. This also applied to the network’s revenues.
However, looking at the impact the Algorand Foundation’s announcement had on the value of the network, it will be interesting to see if it could also help increase network usage and thereby increase revenue.
ALGO did not benefit
While the blockchain’s TVL rose, the price took the opposite route, registering a double-digit decline over the past week. According to CoinMarketCap, the price of ALGO fell more than 16% and 4% in the past week and 24 hours, respectively. At the time of writing, ALGO was trading at $0.1902, with a market cap of $1.37 billion.
Confidence in Algorand is low
The fall in share prices has boosted investor confidence ALGO appeared to have eased over the past week, evidenced by the weighted and negative sentiment. from LunarCrush facts revealed that ALGO’s Altrank rose, which is typically a bearish signal.
How many 1,10,100 ALGOs worth today?
From CryptoQuantALGO’s Relative Strength Index (RSI) and stochastics were still neutral, suggesting that the current market trend may continue.
However, it was interesting to see that despite the price drop, ALGO’s demand in the derivatives market remained fairly stable, as evidenced by ALGO’s Binance green funding rate.
This post Does ALGO have doubts despite Algorand’s promising TVL? decrypt…
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