Algorand recently received a big boost for its blockchain ecosystem courtesy of Hivemind Capital’s $25 million investment to the decentralized finance (DeFi) Layer 1 chain.
Algorand DeFi ecosystem recently attained new all-time high in total locked value
ALGO registered a 3.23% price surge before experiencing minor price correction once again
The altcoin is predicted to be extremely volatile over the next few days
The crypto-focused investment firm announced three days ago that it has deployed 80 million ALGO tokens across various governance and DeFi programs under the umbrella of the Algorand ecosystem.
During that time, ALGO was trading at $0.31, putting the total value of the deployed tokens to $25 million.
Hivemind Capital’s input catapulted the total locked value (TLV) into Algorand to a new all-time high of$270 million. On a week-to-date basis, at that time, the blockchain’s TLV increased by as much as 53.95%.
The massive cash inflow, it turned out, didn’t just help the network with its total locked value, as Algorand’s social dominance and ALGO price also increased.
Algorand Social Engagement Up More Than 1,000%
According to data shared by LunarCrush, Algorand’s social engagement surged by 1,220% over the last seven days as it peaked at 12.78 million at the time of this writing.
The cryptocurrency social intelligence firm inferred this meant ALGO captured the interest of a large part of the crypto community.
Moreover, the upcoming FIFA world cup might have spurred interest for both the blockchain network and the crypto as five months ago Algorand announced it will be one of the sponsors of the much-anticipated sporting event.
Alpha: When you see spikes in social activity, it typically means there’s something to pay attention to…$ALGO social engagements measured hourly hit 12.87M, 1.22K% above the 7-day average.
Access #algorand insights with a LunarCrush Level 5 account: https://t.co/BIkh6qFIUO pic.twitter.com/YeXKYonShv
— LunarCrush (@LunarCrush) October 16, 2022
The huge boost in social status proved to be a good trigger for Algorand as it also translated into a price pump for the altcoin.
ALGO increased by 3.23% over a 24-hour period as it traded for $0.32. At press time, however, the digital asset experienced price correction as data from Coingecko showed it was changing hands at $0.319.
Time To Double Down On ALGO
Different indicators from Algorand’s trading chart signals it may be time to take further risks in ALGO holdings as bigger rewards could be expected.
Bollinger Bands indicate ALGO will be extremely volatile over the next few days which might help trigger price increase for the altcoin.
Meanwhile, the Moving Average Convergence Divergence (MACD) showed Algorand buyers (represented by the blue line) are still dominating the sellers (orange line).
As buyers continue to prevail over sellers, a short term bullish streak could happen soon for the digital asset.
Perhaps crypto investors have already predicted this trend for Algorand, as there’s been a significant increase in ALGO addresses.
By the end of September, active addresses were at 15 million. Recent data, however, show the number increased by 200,000.
ALGO market cap at $2.9 billion on the weekend chart | Featured image from Forkast News, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.