Algorand Witnesses Remarkable Surge in Total Value Locked from $70M to $164M, Indicating Positive Price Momentum
Algorand has successfully broken out of its range trend that had persisted for a month. This move closely mirrors the recent behavior of Bitcoin, which experienced a significant drop to $99.7k on Monday before bouncing back to $108k within a short span of 32 hours.
During the recent period of heightened volatility in Bitcoin, ALGO managed to stay above the range resistance level of $0.42. The On-Balance Volume (OBV) has not reached a new peak, and the trading volume has only marginally increased in the past week. Investors in Algorand are now hopeful for a strong uptrend following this breakout.
Algorand’s Total Value Locked Sees Sudden Surge, but Is It Sufficient?
As of the latest data, the Layer 1 blockchain Algorand has witnessed a significant surge in Total Value Locked (TVL) to $164.55 million. This represents a more than doubling from the $70 million TVL recorded in October 2024. The increase in TVL coincided with a rise in prices, potentially attracting greater attention and participation from users.
Despite the surge in TVL, there has been a notable decline in the number of core developers associated with Algorand, dropping from 39 to just 5 over the past two years. This reduction in innovation and development activity can have adverse effects on the ecosystem and community engagement, leading to decreased user participation levels.
Comparing Algorand’s TVL with that of leading players in the industry, it is evident that ALGO only holds a small fraction, accounting for 0.13% of the total TVL across the industry.
Algorand has historically not been a prominent player in the DeFi space and has struggled to make significant progress in this sector in recent times, unlike Solana, which has been gaining ground on Ethereum.
In terms of price levels, there have been notable limit buy orders at $0.42 and $0.39, serving as immediate support levels. Further down, the levels of $0.37 and $0.33 are identified as potential targets if Algorand breaches the $0.39 support.
Despite the presence of key support levels, the recent price volatility has significantly impacted liquidity around the range high of $0.42, as indicated by the 3-day price chart.
Recent data from Coinalyze highlighted a downward trend in both Open Interest and the spot Crypto Volume Distribution (CVD) over the past 24 hours, raising concerns for bullish momentum due to the lack of active trading in both spot and derivatives markets.