ALGO thriving in DeFi could put a new ATH
ALGO will grow significantly in 2021. The facility will continue to grow until 2022 and take the network to the next level. One of these efforts appears to have been quite successful recently.
Algorand is constantly evolving
Following the launch of Algofi earlier this month, Algorand launched another $ 3 million liquidity incentive program. The impact of this announcement was quite positive as Algorand’s Locked Value (TVL) shot up 40%.
As a result, the price movement also fluctuated by 33.5% in the last 9 days. As a result, the altcoin is slowly recovering from a 45% decline over the past 3 months.
ALGO price promotion | The source: TradingView
This development has certainly revived investors whose confidence has been eroded by the lack of returns. As a result, over 300,000 investors took profits and left the market at the first sign of recovery on December 15th.
Number of ALGO addresses | The source: In the block
The most interesting thing here, however, is that despite the price campaign, ALGO owners are not at a loss. In fact, less than 5% of investors lost money through November.
Even if around 19.3% of investors are currently at a loss, this is still better given the state of other altcoin holders.
This is because over 81% (13 million) of the network’s investors bought ALGO at an all-time low. Hence, they do not take much damage since ALGO does not collapse to that extent.
Number of profitable ALGO investors | The source: In the block
Second, more than 50% of those 13 million investors are long-term investors. That’s why they haven’t lost much in the last 3 months because when they bought ALGO it was trading at $ 0.30.
Number of long-term ALGO owners | Source: Intotheblock
At the time of going to press, the ALGO price is currently 53% below ATH and for this altcoin to get there, investors need to be patient. Selling at the first sign of profit will not benefit the rally; instead, holding a firm position can better support the altcoin.
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