Altcoin

ALGO’s ecosystem shows potential amidst bear market, but what do metrics say?

Published

2 years ago

on

Source: Pexels

  • Algorand’s ecosystem shows growth, however, its TVL continues to decline
  • Its NFT sales also took a hit along with its development activity

One of the biggest DEXes on Algorand, Tinyman, announced a new update on 25 November. Reportedly, the new Tinyman AMM v2.0 protocol was introduced to the community. 

It would offer benefits to users in ways more than one. However, its main focus would be to provide a “better user experience” and a tight “safety mechanism.”

In lieu of this, the DEX witnessed growth in terms of volume and the number of unique addresses. It’s here to be noted that the increasing interest in Algorand’s dApps could be beneficial for the ecosystem’s long-term growth.

Read Algorand’s Price Prediction 2022-2023

Tinyman makes big moves

According to data by Dapp Radar

, the number of transactions on the DEX increased by 27.3% in the last 24 hours. Moreover, the number of unique active wallets on the DEX grew by 3.79% in the same time period.

However, the volume on the DEX continued to decline, as can be seen from the image below.

Source: Dapp Radar

Despite the growing interest in Algorand’s DEX, its TVL declined massively after 10 November.

At the time of writing, the total value locked on Algorand was at $129 million and its TVL had appreciated by 1.93% in the last 24 hours.

Source: DefiLlama

The NFT angle

Well, Algorand wasn’t able to mark its presence in the NFT space either. As made evident by the chart below, the weekly sales for Algorand’s NFTs declined massively over the past few months.

However, despite the declining sales, the NFT volume for Algorand increased in the last 24 hours. According to Stocktwits NFT, Algorand’s NFT volume appreciated by 5% in the last 24 hours.

The top NFT collection during that period was the MNGO collection.

Source: nftexplorer

Algorand on-chain metrics declining?

In terms of on-chain metrics, Algorand succumbed to the pressure of the bear market.

Its volume depreciated significantly over the last week, going all the way from 442 million to 56.2 million. The ecosystem’s development activity declined as well, as can be observed in the chart below.

A decline in development activity implied that the number of contributions being made to Algorand’s GitHub by its developers had reduced significantly.

Source:Santiment

The number of active addresses on the network also depreciated by 34.87% over the last seven weeks, according to Messari.

At the time of writing, ALGO was trading at $0.2455. Its price had appreciated by 2.26% in the last 24 hours, and its market cap dominance decreased. At press time, Algorand had captured 0.25% of the overall crypto market.

Take a Survey: Chance to Win $500 USDT