ALGO, a cryptocurrency backed by Algorand Technologies, appears to have attracted considerable interest among cryptocurrency market enthusiasts today after a sudden jump in the token’s price, up 1.92% in the last 24 hours, reaching $0.1716 .
According to market charts unveiled by crypto platform CoinMarketCap, the token’s trading volume and market capitalization also increased by 23.24% and 1.88%, respectively. Here is a list of potential reasons why the ALGO token price increased today.
ALGO derivatives data reflects the price jump
According to data offered by Coinglass, a futures trading and information platform, the open interest of the ALGO token recently recorded a slight increase of 1.15% and currently stands at $34.96 million. This further aligns with the price increase shown by the token today, signaling an upward trend.
Furthermore, this suggests the arrival of new money into the market, further aiding the upward momentum in the price, as also seen in the recovery of the token’s trading volume. Meanwhile, the total number of contracts traded also saw an increase of 7.52% to $44.73 million, according to data from Coinglass.
Meanwhile, the open interest of ALGO futures on Binance stood at $13.13 million, while on Bybit it totaled $9.52 million, attracting the attention of cryptocurrency market fanatics. These two CEXs appear to be responsible for the lion’s share when it comes to the token’s surge in futures trading, further aiding the price momentum.
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Recent Algorand developments
However, another noteworthy development appears to be fueling the price jump. The Algorand Foundation recently highlighted the launch of a new Algorand API in the API Portal. This has helped users boost multichain dApp development, further strengthening the token’s price.
Additionally, Algorand Ventures, the investment arm of Algorand, recently invested in Folks Finance, a digital asset lending, borrowing and trading platform, fueling cross-chain expansion. This comes as Folks Finance, Algorand’s leading DeFi protocol, recorded an ATH TVL of $170 million at the end of 2023. This further coincided with the token’s price pump.
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