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| Stats from DeFiLlama |
Algorand TVL Up 130% Over Past Week
Algorands total volume locked (TVL) has increased by 130% in only the last week, according to the statistics aggregated by DeFiLlama. This sudden rise of TVL from 75 million USD, to the current 172 million USD, comes after a general crypto rally during the same time.
Crypto Rally Only Part of The Story
The sudden increase in TVL can only partially be explained by the recent cryptocurrency rally and value increase of $ALGO itself. The market cap of Algorand have increase by approximately 15% since 10th of January, when the TVL started to increase. Consequently, something else must be behind the more than doubling of TVL.
Large Allocation to Governance 6 DeFi Programs
The substantial inflow of TVL most likely comes from users committing to the period 6 of Algorand governance program through DeFi programs, instead of locking up their ALGOs for another 3 months.
The reason for this is the success of DeFi-based governance in period 5, where the governors saw a heft 14%+ return. The reward amount is set to be similar for governance 6, as more rewards have been allocated towards DeFi.
The Success of Folks Finance & Algofi
Both Folks Finance and Algofi offers the possibility to participate in governance through their decentralized finance platforms, which both saw an significant increase in TVL in the last 7 days (43% and 86% respectively).
In addition, the platforms allows users to actively explore and engage in other parts of Algorands ecosystem as well, by offering alternative tokens that are exchanged for the users ALGO during the lock-up period (e.g. gALGO), and subsequently swapped back at the end of governance.
