The central theses
- and have increased as more users into DeFi enter.
- Algorand and NEAR rise during and after.
- A liquidity mining program on Algorands Algofi brings new users.
- The strong price movement in these networks appears to be fueled by increased DeFi activity.
- Layer 1 alternative networks, Algorand and NEAR, have grown as new users join their DeFi ecosystems.
Alternative layer 1s rally
Algorand and NEAR native tokens outperform the rest of the market. Algorand led the crypto market on Thursday, rising 17.6% while Bitcoin and Ethereum delayed. The ALGO token rebounded from a low of $ 1.43 late Wednesday to see a strong rebound and was trading at $ 1.68 at press time.
ALGO / USD chart
Algorand’s solid pricing action is likely to be fueled by the launch of a $ 3 million liquidity mining program to help drive DeFi rollout on the network. Algofi, a borrowing and lending protocol similar to Ethereum’s Aave, has partnered with the Algorand Foundation to distribute ALGO token rewards to early users.
DeFi on Algorand grows fast. Tinyman, the network’s first decentralized exchange, has raised over $ 40 million and has a daily trading volume of over $ 5 million. Also, an Ethereum and the Bitcoin bridge called Algomint launched their own liquidity mining program last week to motivate users to get their funds on the network.
The NEAR protocol is another highlight today, with native tokens up 10% in the past 24 hours. Like Algorand, NEAR has seen an increase in DeFi activity on its network. According to data from DeFi Llama, the total value locked on NEAR increased 19.24% over the past week to more than $ 133 million.
NEAR also got a boost in early December when it partnered with another Layer 1 network and started its current rally. The partnership means that Terra willStablecoin starts in the NEAR and Aurora ecosystems and opens up new DeFi strategies.
While activity on Algorand and NEAR is still low compared to better known Layer 1s like and, DeFi is growing rapidly on these networks. Investors are likely to speculate that these alternative networks will see higher valuations following the Layer 1 chains earlier this year in August. Only time will tell whether this Layer 1 trend will continue until 2022.
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Source: Crypto News Deutsch