Algorand Rallies by 15% Following the Launch of DeFi Incentives

The decentralized finance space is one of the fastest-growing sectors in the cryptocurrency industry, with the total value locked increasing by more than $100 billion in 2021.

Algorand Launches DeFi Incentives

The Algorand Foundation launched an incentive program to boost the usage of decentralized finance (DeFi) protocols on its blockchain. The announcement has resulted in ALGO rallying by more than 15% over the past 24 hours.

Algorand is an open-source, permissionless, Pure Proof-of-Stake (PPoS) blockchain protocol designed to power the next generation of financial products. Per the team, Algorand ensures full participation, protection and speed within a truly decentralized network. Algorand is known for offering highly-customizable smart contracts (ASCs), Asset Tokenization (Algorand Standard Assets), and Atomic Transfers built directly in Layer-1.

The Algorand Foundation partnered with Algofi, a decentralized finance (DeFi) platform, to launch a $3 million incentive program. Users who supply, borrow, and stake on the platform will be eligible to benefit from the initiative in the first quarter of next year.

Through partnership with the @AlgoFoundation Aeneas DeFi Fund, Algofi will be launching a rewards program of $3MM (2MM $ALGO).

Users who supply, borrow, and stake on the platform will be eligible to benefit from this initiative during Q1 2022. 🌊

Read 👉 https://t.co/JxclKjRAK8 pic.twitter.com/8TQXxSzfnB

— Algofi (@algofiorg) December 29, 2021

Starting January, Algofi users will algorithmically earn ALGO tokens when they supply or borrow ALGO and stablecoins AlgoStable (STBL) and USD Coin (USDC). Furthermore, users that stake assets on Algofi will be rewarded with goBTC and goETH, representations of bitcoin (BTC) and ether (ETH) on the Algorand network.

ALGO Could Rally Towards $2 Soon

ALGO has been rallying over the past 24 hours, and the coin’s price is currently up by more than 15%. At press time, ALGO is trading at $1.73 and could aim to break past the $2.0 psychological level if the rally continues.

The ALGO/USD daily chart shows that the cryptocurrency is bullish. ALGO just broke past its 50-day moving average of $1.644, the first time it is trading above that level in three weeks. The MACD line is still below the neutral zone but could enter the positive region if the rally continues. The RSI of 61 shows there is strong buying pressure on the cryptocurrency at the moment.

If the current market momentum persists, then ALGO could trade above the $2 mark for the first time since November.