Algorand TVL jumps 300%

Algorand’s (CRYPTO:ALGO) Total Value Locked (TVL) increased by over 300% in the past month, peaking at $244.74 million on December 3 before settling at $184.5 million, according to DeFiLlama.

This significant growth is driven by the expanding interest in Algorand’s DeFi ecosystem, with Folks Finance leading the way by recording a 289% increase in assets locked, totaling over $284 million.

Other DeFi protocols on Algorand have also seen heightened activity, reflecting a renewed enthusiasm for the network’s potential.

ALGO, Algorand’s native token, has benefited from the network’s positive momentum, maintaining a bullish trend despite minor corrections.

The token was recently trading at $0.4965, showing resilience by remaining above its 200-day moving average, which signals a continued bullish outlook.

However, with the Relative Strength Index (RSI) at 74.08, Algorand enters overbought territory, hinting at the possibility of consolidation or short-term profit-taking.

Network activity and trading volumes have surged in line with the TVL growth, suggesting strong network engagement.

On December 8, Algorand’s trading volume reached 27.36 million Algorand, while late November saw network activity peak at 2.33 billion Algorand before retracing to 788.44 million Algorand.

This uptick in engagement is supported by platforms like Folks Finance, driving deeper integration into Algorand’s DeFi capabilities.

The combination of increased TVL, price momentum, and network activity underscores the network’s growing utility and user interest.

While retracements in both TVL and volume hint at potential cooling, sustained elevated levels indicate that Algorand’s ecosystem is attracting attention.

Whether Algorand’s price can maintain its uptrend will depend on continued utility expansion, ecosystem development, and broader market conditions.

The network’s ability to address liquidity challenges and foster greater participation will be pivotal for long-term success.

At the time of reporting, Algorand price was $0.4821.