Alpha Finance Lab’s governance mark, ALPHA, is up 152% over the past week. It is now the 85th most valuable cryptocurrency on the world market and breaks into the top 100 in a short time.
There are three key factors behind the meteorite rally: Alpha Homora’s rapidly increasing Total Value Locked (TVL), the overall positive market sentiment surrounding DeFi and the upcoming launch of Alpha Homora v2.
What is ALPHA, Alpha Homora and AlphaX?
Alpha Homora is essentially a protocol that allows users to create a farm using leverage.
The term yield farming refers to the process of providing liquidity for DeFi protocols in order to achieve a sustainable yield or APY. By using leverage, Alpha Homora enables users to provide pools with liquidity more efficiently.
Alpha Homora v2 adds various improvements to the first version. In addition to Uniswap, more pool support is added, e.g. B. Curve, Balancer and SushiSwap. In this way, users can benefit from a wider variety of pools to choose from to maintain a farm.
Version 2 also allows users to hold positions that are leveraged up to 9 times, borrow multiple assets, and lend or borrow assets other than Ethereum, as Sawit Trisirisatayawong of Band Protocol explained.
Ultimately, Alpha Homora should be useful to the average DeFi user with limited capital who wants to maximize their yields.
AlphaX, the decentralized futures exchange, also wants to be beginner-friendly by removing the manual futures financing rate and pricing it into the price. The two key products in the Alpha Finance Lab ecosystem are designed for the casual user in DeFi.
With a market cap of $ 296 million, ALPHA is arguably viewed as a blue-chip DeFi asset. However, the price for ALPHA is very dynamic and is rising continuously.
The optimism about ALPHA stems from Alpha Homora’s rapid rise in TVL and the project’s active development community.
Alpha Homora’s $ 618 million alone could warrant a high valuation for ALPHA by calculating the potential fees the protocol might charge in the future and predicting cash flow.
The existence of other key products like AlphaX that make Alpha a more comprehensive DeFi ecosystem has likely made ALPHA more attractive as a long-term DeFi bet.
The pace of growth is optimistic
Alpha Homora is the fastest DeFi protocol to achieve a TVL of $ 600 million in DeFi space history.
It took about six months for the best DeFi protocols and lending platforms like Aave and Curve to hit the same TVL.
While Alpha was admittedly started when the DeFi room was seeing explosive growth, it’s nonetheless impressive that it was able to outperform the largest DeFi projects in the room.
In the long run, there are several potential catalysts for the price of ALPHA.
In particular, Alpha Finance Lab’s official document reveals that ALPHA token holders may soon be able to receive some of the protocol fees either by staking or by providing liquidity. The document reads:
“Utility tokens for all Alpha products (e.g. providing liquidity or participation to receive% protocol fees) (not yet implemented).”
More benefits for the ALPHA token should act as a strong catalyst in the long term and make the token itself more attractive.