Decentralized finance-focused protocols are seeing a sustained upward move, and the momentum appears to be picking up pace now that the NFT sector has cooled off over the past two weeks.
Since the beginning of August, Elrond (EGLD) — a scalable and secure blockchain platform designed for distributed apps and enterprise-level businesses — has been in a strong rally.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $52.00 on June 22, the price of EGLD has charged 437% higher to a new all-time high of $302.14 on Sept. 14.
Three reasons for EGLD’s surge include the full release of the protocol’s Maiar exchange, the altcoin’s listing on KuCoin, and a string of partnerships and integrations that expand the Elrond ecosystem.
DeFi capabilities follow the Maiar exchange launch
EGLD’s recent momentum results from the launch of the Maiar exchange, a DeFi protocol built on the Elrond network that allows users to trade and provide liquidity in various pools.
On Sept. 9, Elrond announced that U.S. citizens could begin purchasing EGLD tokens directly through the Maiar app, thanks to integration with Moonpay, giving the project access to the world’s largest retail economy.
In an effort to attract new users and display Elrond’s capabilities, Maiar also launched a $100,000 “Battle of the Yields” contest on Sept. 14, giving users an opportunity to win EGLD based on their trading volumes.
Exchange listings boost trading volume
Another reason for the recent strength seen in EGLD was its listing on the KuCoin exchange, the fifth-largest exchange by 24-hour trading volume.
New exchange listings are often followed by strong rallies for the token, especially when paired with perpetual futures markets or a top-five exchange by trading volume.
The token’s addition to KuCoin and the launch of Maiar Exchange have brought a new level of exposure to EGLD. Subsequently, its 24-hour trading volume increased from a daily average of $83 million to $740 million on Sept. 11.
Related: Sen. Warren goes after Ethereum network fees in committee hearing
Ecosystem expansion
A third factor backing Elrond’s rally is the growth of its ecosystem. Recent partnerships include adding AI-generated media content through a partnership with Humans, a platform integrating data and technology to generate AI models, and an agreement with NewsCrypto, which allows users to learn more about Elrond through the platform’s “crypto academy.” Elrond also has a new integration with Copper, a major digital custody provider.
The network has also partnered with companies focused on gaming, DeFi and cross-chain transfers between Ethereum, Polkadot and the Binance Smart Chain.
According to data from Cointelegraph Markets Pro, market conditions for EGLD have been favorable for some time.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for EGLD started to pick up on Sept. 10 and reached a high of 77, around one hour before the price began to increase by 55% over the next four days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
