Algorand Hits New ATH, DeFi TVL Finally Recovers

• DeFi TVL hit the $54 billion mark again
• ALGO Price at the time of writing – $0.3225
• Algofi, saw a nearly 33% increase in its TVL

The leading decentralized finance (DeFi) total value locked (TVL) aggregator, DeFi Llama, has provided data indicating that the TVL in DeFi protocols has risen to $54 billion.

Since Oct. 12, the data indicate that the total TVL was down between $53.7 and $53.29 billion.It is essential to note that the TVL fell to $52.22 billion in September, the lowest level since March 2021.

With a market share of 14.48 percent and $7.83 billion TVL, the Ethereum-based MakerDAO is still the largest DeFi protocol across all chains.

Algorand reaches new all-time highs 

According to DeFi Llama data, the young proof-of-stake (PoS) blockchain Algorand, which was first released in 2019, just reached an all-time high (ATH) of $275.15 million.

In addition, Algofi, the leading DeFi protocol in Algorand, has seen a nearly 33% increase in its TVL over the past 30 days.DeFi Llama data indicate that Algofi commands a TVL of approximately $133 million and a market share of 48 percent.

Algorand’s native utility token, ALGO, has also benefited from the new milestone, gaining about 3%. According to CoinMarketCap Data, the current price of ALGO is $0.33.

According to a U.Today report, the Mango hack caused Solana’s (SOL) TVL to drop 12.5 percent last week to $1.1 billion. The numbers continue to fall. According to data from DeFi Llama, Solana’s TVL has now dropped to $928 million.

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Algorand’s Compatibility with Ethereum 

Algorand was developed in response to the lengthy transaction times of Bitcoin and other blockchains in order to speed up transactions and increase efficiency. Algorand is based on a permissionless pure proof-of-stake (PoS) blockchain protocol, so it is designed to have lower transaction fees and no mining (as opposed to Bitcoin’s energy-intensive process).

On February 17, 2022, the Algorand Foundation announced that Applied Blockchain would receive a $10 million grant to develop the London Bridge, a trustless bridge that will make the Algorand blockchain compatible with Ethereum. 

Despite offering low transaction costs, low latency, and high scalability, Algorand has had difficulty attracting liquidity to its ecosystem. Algorand would be able to connect to these applications and attract more liquidity if it had a bridge to Ethereum, the DApp ecosystem that is currently the most robust. 

By incorporating state proofs in the form of Compact Certificates into the Algorand Consensus, the Algorand Foundation hopes to have other chains verified using Alogrand’s smart contracts in the long run. The establishment of the DeFi ecosystem in Algorand is the ultimate objective of the foundation.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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