Algorand and NEAR are soaring while Bitcoin and Ethereum lag.
A liquidity mining program on Algorand’s Algofi is bringing in new users.
The strong price action on these networks appears to be fueled by increased DeFi activity.
Share this article
The alternative Layer 1 networks Algorand and NEAR have surged as new users jump into their DeFi ecosystems.
Alternative Layer 1s Rally
Algorand and NEAR’s native tokens are outpacing the rest of the market.
Algorand led the crypto market Thursday, rising 17.6% while Bitcoin and Ethereum lagged. The ALGO token bounced from a low of $1.43 late Wednesday to post a strong recovery, trading at $1.68 at press time.
Algorand’s solid price action is likely fueled by the launch of a $3 million liquidity mining program to drive DeFi adoption on the network. Algofi, a lending and borrowing protocol similar to Ethereum’s Aave, has partnered with the Algorand Foundation to distribute ALGO token rewards to early users.
DeFi on Algorand is growing quickly. The network’s first decentralized exchange, Tinyman, has already secured over $40 million of total valued locked and sees daily trading volumes of over $5 million. Additionally, an Ethereum and Bitcoin bridge called Algomint launched its own liquidity mining program last week, incentivizing users to bridge their funds onto the network.
NEAR Protocol is another standout today, with its native token climbing 10% over the past 24 hours. Like Algorand, NEAR has also seen DeFi activity pick up on its network. According to data from DeFi Llama, the total value locked on NEAR has increased 19.24% over the past week to more than $133 million.
NEAR also received a boost earlier in December when it partnered with fellow Layer 1 network Terra, kicking off its current rally. The partnership means that Terra will deploy its UST stablecoin to the NEAR and Aurora ecosystems, opening up new DeFi strategies.
While activity on Algorand and NEAR is still low compared to more prominent Layer 1s such as Avalanche and Solana, DeFi on these networks is growing fast. Investors are likely speculating that these alternative networks will see increased valuations following the explosion of Layer 1 chains earlier this year in August. Only time will tell if this Layer 1 trend will continue into 2022.
Disclosure: At the time of writing this feature, the author owned LUNA, SOL, and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Crypto Market Tumbles as Whales Send Bitcoin Below $50,000
Bitcoin has broken below $50,000 again. Other Layer 1 coins like Ethereum, Solana, Terra, and Polkadot are also down today. Bitcoin Faces Resistance Bitcoin is pushing the cryptocurrency market into…
Terra Leads Layer 1 Resurgence Targeting $100
Terra is continuing to trend higher amid a resurgence of Layer 1 chains. NEAR, Fantom, and Cosmos are also showing strong recoveries after trending lower since the beginning of December. …
Web3 – What it is, What it Means, and How We’ll Transition
We are at the dawn of a new era of the internet. Bit by bit, this new digital world, and all that it enables, will slowly become a part of…
Layer 1 Coins Lead Market Rally After Fed Meeting
Avalanche, Fantom, Kadena, Terra, and other Layer 1 coins have posted double-digit gains today. Layer 1 Projects Rally on Fed Meeting Layer 1 projects are leading the market again. According…