Today, the ALGO price experienced an abrupt increase of approximately 2%, which mirrored the token’s derivatives data and recent events.
Following a sudden surge in ALGO token price rising 1.92% over the past 24 hours reaching $0.1716, ALGO, a cryptocurrency backed by Algorand Technologies, has attracted considerable attention from crypto market enthusiasts today.
According to market charts disclosed by the crypto platform CoinMarketCap, the token’s trading volume and market cap increased by 23.24% and 1.88%, respectively.
Possible explanations for the current increase in the price of ALGO tokens are as follows.
Data on ALGO Derivatives Reflects Price Increase
Per data provided by Coinglass, an information and futures trading platform, the open interest of the ALGO token recently increased by 1.15% and is presently at $34.96 million.
This is consistent with the token’s current price increase, which indicates an upward trend.
In addition, the increase in the token’s trading volume suggests that this may signal the entry of fresh capital into the market, which will further support the price’s ascent.
Consequentially, according to data from Coinglass, the total number of contracts traded increased by 7.52%, reaching $44.73 million.
In contrast, the open interest in ALGO futures on Binance amounted to $13.13 million, while it was $9.52 million on Bybit.
This disparity has captured the attention of crypto market enthusiasts.
These two CEXs are primarily accountable for the substantial increase in the token’s futures trading, thereby contributing to its upward price momentum.
Recent Algorand Developments
However, an additional significant development seems to be driving the price increase.
In the API Portal, the Algorand Foundation recently highlighted the launch of a new Algorand API.
This supported the development of multichain dApp by users, which increased the token’s price.
Additionally, Algorand Ventures, the investment branch of Algorand, recently invested in Folks Finance, a lending, borrowing, and trading platform for digital assets, thereby accelerating cross-chain expansion.
Folks Finance, the leading DeFi protocol in Algorand, had reported an ATH TVL of $170 million as of the end of 2023.
This occurred concurrently with the token’s price increase.
