Over the past 7-days, ALGO fared quite well on its price charts. After witnessing a 16% pump in the aforementioned time-window, the DeFi token was seen exchanging hands around $1.8 at the time of writing.
Well, this doesn’t come as any surprise because ALGO always performed well whenever the broader market has been in dire straits. Over the past week as Bitcoin, Ethereum and most other large-cap alts tumbled, ALGO was able to remain a part of the “elite” list.
However, at press time, the market was seen recovering. The global crypto market cap was hovering around $2.6 trillion, after witnessing a 2% rise over the past day. Bitcoin and Ethereum too, were seen trading in green.
At this point, ALGO has a couple of problems lined up already. As highlighted in an earlier article, ALGO has sort of shared an inverse correlation with the broader market. So now, things might get messier if Bitcoin, Ethereum and other coins continue rallying in the coming days.
Further, to make things worse, ALGO’s fundamentals have also started weakening. Over the past day, for instance, the total value locked up on the protocol witnessed a free fall from over $86 million to $28 million. Sudden liquidity crunches like this aren’t really healthy for any DeFi protocol on any given day.
The TVL represents the cumulative vale of staked assets. The higher the value, the better the health of the protocol’s DeFi and…