We are back to take a quick look about the state of the DeFi market and how it reacted to the movements of cryptocurrency as a whole, along with a little review of an important asset for this sector. Let’s begin:
It has been two weeks since BTC’s third halving, and the market has had some time to react and show the very short-term results. This week, the overall cryptocurrency market experienced its first drawback after the event, dropping around 6% and losing a total of $15 billion.
Compared to this, we can see that the TVL of the DeFi market only dropped by 3% for a total of $30 million, most of which could be related to contracts releasing currency after the halving, users paying their credits or withdrawing their funds. We will have to wait for long-term.
For this week’s second part, we will talk about Algorand, a platform that has been talked about even before its launch, since it was first drafted by Silvio Micali, a professor of MIT and a recipient of the Alan Turing Award for contributions to the computer field. It launched in June 2019, the month where cryptocurrency peaked and started going downhill, which reflected in the fall of the ALGO token’s price.
However, Algorand managed to strive and rise again, to a point where now its accompanied by quite a positive perception, and it has been calculated to offer stable 5.41% rewards on its “True Proof-of-Stake” model that generates passive revenue for staking. As with any alt-coin, ALGO is quite dependent on the behavior of the market, but being able to raise over 200 million after tanking in its early days is something that not many projects achieve, and even fewer manage to maintain their momentum.