ALGO’s performance may lack this key component despite its best foot forward

Algorand [ALGO] may be in the midst of celebrating a moment. This is because Algorand witnessed significant growth in the DeFi space over the past week. The reason for this growth could be multiple sources of capital flowing into Algorand’s DeFi protocols.

However, there was more to celebrate. Coupled with the growth in the DeFi space, Algorand’s engagement on the social front also observed a significant uptick.

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Here’s AMBCrypto’s Price Prediction for Algorand for 2022-2023.

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Hivemind Capital, a crypto-focused investment firm, invested around $80 million into various Algorand DeFi projects. This could be considered a positive for Algorand’s growth.

As can be seen from the image below, Algorand’s total value locked (TVL) showed massive growth over the past couple of weeks and it grew by 51.75% in the last seven days. ALGO’s overall TVL stood at 266.08 million at the time of press.

Source: DefiLlama

Furthermore, ALGO’s growth in the DeFi space went hand-in-hand with Algorand’s growth on the social front. 

You go where ALGO

According to LunarCrush, a social media analytics firm, Algorand’s social mentions and engagements both grew respectively. At the time of writing, Algorand’s social mentions increased by 14.28% and its social engagements appreciated by 16.8% in the past seven days.

Algorand’s growth on the social front could have a positive impact on its prices going in the future. Additionally, another indicator of a possible bullish outlook for Algorand would be its increasing weighted sentiment. 

ALGO’s weighted sentiment grew massively over the past two weeks, indicating that the overall crypto community had a positive outlook towards Algorand at press time.

Source: Santiment

Algorand had multiple reasons to rejoice as the blockchain witnessed an uptick in the active addresses count especially in September. The number of active addresses grew by a tremendous 59% over the last 30 days according to data from Messari.

However, a decline was observed in the medium transfer value of Algorand. This indicated that despite the growth in activity on the network, the USD value transferred per transaction had reduced.

Source: Messari

Despite good news for the Algorand blockchain, its native token ALGO failed to share the enthusiasm. At press time, Algorand, was trading at $0.315 after depreciating by 3.52% over the last 24 hours.

It’s volume declined by an alarming 65% during the same time period and its market cap fell by 3.20%. Readers who want to hold a long position on Algorand could consider this as an opportunity to get the token at a discount.