The on-chain activity of ALGO is of great interest to me. The following are noteworthy:
First, Figure 1 shows that 100% of ALGO holders are now experiencing losses. 75% of these holders possess ALGO amounts equivalent to approximately 722,000 USD at the time of writing on May 12, 2023, and most have held for over one year. This indicates limited selling pressure and long-term commitment to the project from holders. Furthermore, the price correction relative to Bitcoin is significant, so if the BTC price stabilizes or rises, the ALGO price has a high chance of also increasing.
Second, Figure 2 shows that the total value locked (TVL) in ALGO remains relatively stable even during periods of high volatility (this is quite strange if you compared it with other protocols). This demonstrates that development continues to progress and that user activity on the ALGO chain remains quite active, building more trust in the project's potential.
The only concern here is Algofi's dominance of the ALGO chain. I expect that in the future, more projects will launch to reduce the top project's dominance to around 30%
Will all of these, compared to other chains in the top 100 market cap, I believe here is one of potential projects we should keep an eye on.
Thanks for reading and please let me know if you have any comments. Show Less
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