Ethereum competitor launches a $300 million fund to support decentralized finance (DeFi) innovation on its network. Blockchain company Algorand Foundation is investing 150 million ALGO, worth $309 million at press time, in the Viridis DeFi program with the aim of driving growth on its platform.
Sean Lee, executive director of the Algorand Foundation, said the fund will help accelerate DeFi adoption in the project ecosystem.
“Creating the right infrastructure, application ecosystem and liquidity will be key to ensuring DeFi on Algorand is considered the most energy-efficient, scalable and profitable DeFi ecosystem in the world. lowest in the world. The first
,100 million ALGOs will be dedicated to providing liquidity and incentives to the Algorand DeFi ecosystem. Another 50 million ALGO will be devoted to the development of DeFi infrastructures and applications (DApps).
ALGO rallied strongly this week as most of the crypto market undergoes a correction. The 18th capitalization-enhanced asset is trading at $ 2.06 at the time of release and is up 68.4% in the past seven days, according to CoinGecko.
Renowned crypto trader and analyst Lark Davis says the existence of these ecosystem funds is a positive development for the industry as a whole.
“Most major chains have announced hundreds of millions of dollars to major ecosystems in recent weeks. No one is optimistic enough!
Before this week, Algorand (ALGO) was trading about $1.51, but it fell with the rest of the crypto market to $1.20 by the middle of Tuesday.
However, since then, the 17th-ranked asset by market capitalization has soared more than 100 per cent to a weekly high of $2.41 on Thursday. According to CoinGecko, ALGO has since steadied at $2.13 at the time of writing.
The specific catalyst behind ALGO’s upward trend is unknown. On Thursday, the crypto project announced the introduction of the latest iteration of its asset management platform, however, the most of its price increase occurred prior to that announcement.
One possible factor is SkyBridge Capital founder Anthony Scaramucci’s mention of Algorand on CNBC on Tuesday when he said it was one of the crypto assets that were likely to increase due to its utility.
According to the former Trump administration official.
“There’s a lot of exciting stuff going on in this space… Some of those altcoins, such as Algorand or Cardano, or things like Ethereum, will continue to climb as more digital applications emerge because there are truly great use cases for them.”