New York-based game development studio, Pahdo Labs, has successfully raised $15M in a Series A financing round, according to its official blog. The round was spearheaded by Andreessen Horowitz (a16z) and saw participation from Pear VC, BoxGroup, Long Journey Ventures, Neo, and Global Founders Capital. This follows a previous seed round where the company garnered $2.5M from notable angel investors including Kevin Hartz, Mark Pincus, and Cyan Banister.
Founded in 2021 by Daniel Zou, Pahdo Labs began its journey in Irvine, California. The company’s inception during the pandemic saw a group of game developers come together, united by their passion for anime and action role-playing games. The team’s dedication led them to relocate to New York, focusing solely on creating multiplayer video games.
Pahdo Labs’ upcoming project, codenamed “Halcyon Zero”, is set to launch its Pre-Alpha playtests this September. The game promises a unique blend of anime aesthetics and action role-playing, allowing players to craft their own anime-style worlds. These creations are facilitated by AI-enhanced tools and procedural generation, emphasizing both creativity and social interaction within the anime RPG realm.
The game, built on the Godot Engine, is an isometric anime fantasy RPG. It features a vibrant world with towns and cities acting as social epicenters. Players can collaborate to traverse the Chaos-infested wilderness, battling anime-themed bosses to uncover the mysteries of Chaos. The gameplay is designed to be dynamic, with a focus on teamwork and fluid combat. The Pre-Alpha version will introduce four character classes: Spellblade, Enchanter, Witch, and Spitfire. The full release aims to offer a plethora of anime-inspired heroes and will be available on multiple platforms, including PC, iOS, and Switch.
In addition to the core game, Pahdo Labs is integrating comprehensive level-building tools. These tools empower players to design their own in-game experiences, making user-generated content a pivotal aspect of the game’s narrative and overall player experience.
Interestingly, Pahdo Labs has leveraged TikTok to build an early community. Their content, which provides insights into indie game development and the daily life of their New York-based team, has amassed millions of views. Through their official TikTok accounts, @pahdolabs and @1indaqin, they not only engage potential players but also inspire future game developers.
In a note, founder Daniel Zou expressed his gratitude to the supporters and shared his vision for Pahdo Labs. Drawing inspiration from his childhood experiences with online RPGs, Zou emphasized the company’s mission: “Creating a world where players are empowered to create things of lasting value.”
With the Pre-Alpha playtests on the horizon, Pahdo Labs invites anime and action RPG enthusiasts to be a part of their evolving game world.
About Andreessen Horowitz (a16z)
Andreessen Horowitz, commonly referred to as a16z, is a prominent venture capital firm dedicated to supporting ambitious entrepreneurs who aim to shape the future with innovative technology. The firm is not restricted by the developmental stage of companies; it invests across various stages, from seed to growth. a16z’s investment portfolio is diverse, encompassing sectors such as AI, bio + healthcare, consumer, crypto, enterprise, fintech, games, and initiatives promoting American dynamism. Currently, the firm manages assets worth $35B spread across multiple funds.
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Once hailed as the “Ethereum of China,” Neo’s token price has fallen on hard times ever since the world’s most populous nation introduced a series of acute bans on cryptocurrency operations last year. In an exclusive interview with Cointelegraph, Neo’s developers — who wished to remain anonymous — explained that partners run most projects sponsored by Neo Global Development, or NGD, from a wide range of countries outside China that serve users all over the world.
In addition, Neo continues to expand inside China. It is currently one of seven open permission blockchains servicing the nation’s Blockchain-based Service Network, or BSN. One of the group’s goals is to expand the adoption of nonfungible tokens in the country.
There’s also been quite a few decentralized finance, or DeFi projects, and decentralized applications, or dApps, since the launch of the Neo 3.0, sometimes stylized as Neo N3, mainnet last year. One example is Defina Finance, an anime-styled NFT metaverse game that uses a play-to-earn model. Total trading volume in the Defina marketplace has exceeded $100 million at time of publication. Defina began expanding to Neo N3 in 2021 in partnership with NGD.
But according to the project’s team, the “coolest” development is probably that of Rentfuse. Our sources from Neo explained:
“Rentfuse is a protocol designed to manage NFT rental agreements between owners and tenants for gaming or other functions. Neo leadership is working with Rentfuse to establish it as an NFT leasing standard for the Neo ecosystem.”
Its developers, too, appear to be fond of the greater Neo community. “We reached thousands of people through Neo socials to let people know more from us, and we have developed the core contracts of Rentfuse,” so said Michael Fabozzi, founder of Rentfuse, in a statement to Cointelegraph. “Thank you for believing in us.”
Meanwhile, sources at GhostMarket, a multi-chain Neo NFT marketplace that recently raised $2 million in strategic funding and completed an initial DEX offering on Flamingo Finance, told Cointelegraph:
“Neo’s $10 million N3’s early adoption program [last year] was vital for Neo to attract and onboard new projects and was very much needed to exponentially scale Neo ecosystem.”
When asked about what made Neo unique in a sea of smart-contract, proof-of-stake blockchains, they explained that out of many highlights, Neo 3.0 has a native built-in oracle for HTTPS or NeoFS requests. A distributed data storage solution also exists for scalability and privacy on the NeoFS Network.
In addition, interoperability protocol Poly. Network enabled cross-chain communications between Neo and Ethereum (ETH), Binance Chain (BNB), and more. There’s also NeoID, which is a self sovereign identity initiative allows developers to customize the precise level of attribute verification needed to ensure that contract operates correctly.
Nonfungible tokens and blockchain-based gaming projects saw a breakout in popularity over the course of 2021. This was due to their widespread appeal which attracted the attention of crypto newbies and experienced hodlers alike. This trend helped to further initiate the mass adoption of blockchain technology and from the look of things, its likely to extend throughout 2022.
One project is making moves in 2022 is Phantasma (SOUL), a layer-one blockchain protocol that specializes in the creation of SmartNFTs and decentralized gaming applications. Its prices reflect that it’s about to make a run for a new all-time high.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $2.30 on Dec. 30, the price of SOUL has climbed 61.73% to a daily high at $3.72 on Jan. 3 as its 24-hour trading volume increased from an average of $3 million to $12 million.
SOUL/USDT 1-day chart. Source: TradingView
Three reasons for the surging price of SOUL are the launch of several new protocols on the Phantasma network, the addition of cross-chain support for multiple networks, and the overall increase in popularity of NFTs and blockchain-based gaming.
New projects launch on Phantasma
One of the biggest developments to come out of the Phantasma ecosystem over the past couple of weeks has been the launch of several projects on the network. This includes the role-playing card game Blood Rune, the mobile game Ghost Festival and the NFT marketplace GhostMarkets.
The GhostMarket NFT marketplace is currently conducting its initial decentralized exchange offering (IDO) on Flamingo Finance and will have its GM token available to operate on the six different networks that GhostMarket supports, but including Ethereum (ETH), Binance Smart Chain (BSC), Phantasma, Avalanche, Polygon and NEO N3.
One of the main draws of using Phantasma over other chains is its dual token system where SOUL token holders can stake their tokens to earn Phantasma Energy (KCAL). These in turn can be used to pay for transaction fees. This essentially makes transactions free for SOUL holders.
Phantasma is also certified as a carbon-negative blockchain which has helped attract positive attention. This sets it apart from other networks like Ethereum, which notoriously has a higher carbon footprint since it utilizes mining.
Cross-chain interoperability
A second reason for the building strength of Phantasma has been the addition of cross-chain interoperability with multiple blockchain networks including Ethereum, BSC and NEO.
On the 5th day of Christmas #Phantasma gives to you a Layer 1 smart contract ecosystem, quad-chain interoperable with $ETH, #BSC and $NEO for fungible tokens and soon for Non-Fungible Tokens(#NFTs)$SOUL $BNB #smartNFTs #blockchaingaming #GameFi pic.twitter.com/vcpXmqO66r
— Phantasma (@PhantasmaChain) December 29, 2021
On top of the addition of interoperability with other networks, the Phantasma chain itself is capable of reaching high levels of throughput. This is due to the ability to host infinite sidechains while the network as a whole benefit from having native oracles built directly into the core of its design.
With interoperability looking to be one of the major themes in the cryptocurrency ecosystem for 2022, projects that have already started making it a focus of development are likely to outperform the competition that doesn’t. This will incentivize crypto users to become increasingly comfortable with transacting across multiple networks.
Related:Samsung announces NFT platform for smart TVs
NFT and gaming popularity
The third reason for the building strength of Phantasma is the overall popularity of gaming and NFT projects as blockchain adoption is on the rise.
According to data from Google Trends, interest in NFTs has been rising since early 2021 and hit a peak in the middle of December as Phantasma was introducing new projects and touting its low-cost capabilities.
Interest in NFT searches over time. Source: Google Trends
On top of the generalized rise in interest in NFTs, popular blockchain-based games like Axie Infinity have led to the emergence of play-to-earn games across the crypto ecosystem. The high throughput, low-cost capabilities of Phantasma make it an attractive option for gamers looking to maximize their earnings while minimizing transaction costs.
With the interest in gaming and NFTs showing no signs of disappearing in the near future, projects that focus on facilitating their growth and adoption could continue to see their values rise as NFTs become more mainstream.
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.
The cryptocurrency market provides investors with another day of ‘altseason’ as the majority of altcoins in the top 100 on CoinMarketCap rallied today.
Several large-cap tokens reached multi-year highs and this all took place as Bitcoin (BTC) price struggles to hold any of the news-event-driven gains that it has accrued throughout the week.
One of the most notable performances has been put on by Ethereum Classic (ETC), the “unaltered” Ethereum (ETH) fork that has been gaining traction over the past week as its dedication to a proof-of-work consensus mechanism attracts the attention of miners and retail ‘Robinhood’ investors.
ETC/USDT 4-hour chart. Source:TradingView
Data from Cointelegraph Markets and TradingView shows that after hitting a low at $86.12 in the early trading hours on Thursday, the price of ETC jumped 81% to reach a new all-time high at $179.83 as the 24-hour trading volume spiked to a record $39.1 billion.
Several large-cap cryptocurrencies have seen significant gains recently including, Litecoin (LTC) which hit a one-year high compared to BTC, and a 68% rally in Bitcoin Cash (BCH) which spiked above $1,500 for the first time since May of 2018.
Layer 1 solutions soar as trading volumes increase
Ether also hit a new all-time high at $3,605 as excitement continues to build ahead of the London hard fork and the implementation of EIP-1559, which is expected to take place in July.
Major #Ethereum gas fee overhaul #EIP-1559 scheduled for July, in the #London network upgrade https://t.co/mQrxvSt7aa via @cointelegraph
— Attestant ⟠ (@AttestantIO) March 8, 2021
Cardano’s ADA token is another top 10 project that saw its price reach a new all-time high at $1.69 and Tezos (XTZ) rallied 23% after the start of the trading day to reach a new record high at $8.05.
Several of the ‘Ethereum Killers’ that arose out of the 2017-2018 bull market saw double-digit gains including EOS, whose price rallied 50% intraday to a peak of $12.57, and Neo (NEO), which spiked to a high above $128 before a general market pullback led to a dip in the majority of prices.
Bitcoin dominance drops to new lows
The steady strength shown from altcoins has led to a steady decline in Bitcoin dominance over the past month, which dropped to a low of 45.25% on May 6. According to analysts, this is yet another sign that an altcoin season is in full effect.
BTC market cap dominance 4-hour chart. Source:TradingView
While institutions appear to heavily favor Bitcoin and to a lesser degree Ether, retail traders have been drawn to lower-priced tokens that offer the possibility of larger gains, as evidenced by the recent price explosion in Dogecoin (DOGE).
If this trend continues, it’s likely that Bitcoin’s dominance rate could continue to slide lower as new funds coming into the cryptocurrency ecosystem through stablecoins are more widely distributed.
The overall cryptocurrency market cap now stands at $2.346 trillion and Bitcoin’s dominance rate is 45.5%.
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.
E-commerce merchants can now transact in nearly 40 cryptocurrencies through global payment platform Nuvei.
According to the announcement, merchants partnered with the payment provider can use an array of cryptocurrencies to send and receive payments across 200 countries, including top assets Bitcoin (BTC) and Ether (ETH), lesser known cryptos such as Reddcoin and Bitcoin Gold, and even hyper-volatile coins like Dogecoin (DOGE).
Nuvei’s customers can even use Ripple (XRP), despite the asset’s recent legal woes and subsequent delistings from major exchanges.
Commenting on the launch, Nuvei’s CEO and chairman, Philip Fayer, described the firm’s support for crypto assets as “empower[ing] our clients, large and small, with frictionless payment experiences and a greater opportunity to partake in a global marketplace.”
The announcement also asserts crypto asset transactions will provide “enhanced security, privacy, and integrity” to Nuvei’s users when compared to traditional fiat methods of payment. However, multiple crypto assets supported by Nuvei have previously been the subject of 51% attacks.
In the final quarter of 2020, Nuvei processed almost $14 billion from merchants, with the company handling $43 billion over the entirety of 2020.
Nuvei’s announcement comes as competition between traditional payment providers entering the crypto sector is heating.
On March 29, Visa announced a pilot program allowing all its partners to use the Ethereum blockchain to settle transactions made in fiat. The solution utilizes the USDC stablecoin to clear transactions.
Late last year, Paypal announced that it will start offering cryptocurrency services to its users including the ability for them to purchase and trade them.
On March 22, U.S.-based online shopping app Buyaladdin announced it will start accepting BTC and ETH across multiple shopping malls in South Korea.
Yield farming has grown in popularity over the past year alongside the rise of decentralized finance, but recently the ability to earn a good return has been limited by the high transaction costs on the Ethereum (ETH) network.
As a result, yield farmers have begun exploring options outside the Ethereum network for more accessible opportunities in a low fee environment.
One option that has shown steady growth in liquidity since launching is Flamingo Finance (FLM), a DeFi platform based on the Neo (NEO) blockchain and the Poly Network interoperability protocol.
Flamingo finance total liquidity and 24-hour volume. Source:Flamingo Finance
Flamingo aims to become a full-service DeFi platform and the protocol currently has a cross-blockchain asset gateway (wrapper), an on-blockchain liquidity pool (swap), a blockchain asset vault, a perpetual contract trading platform (perp) and a decentralized governance organization (DAO).
The cross-blockchain asset gateway is currently capable of wrapping ERC-20 tokens including Wrapped Ether (WETH) and Wrapped Bitcoin (WBTC), as well as Ontology-based (ONT) tokens.
Interaction with the protocol is done using the NeoLine or O3 wallet browser extensions for Neo tokens, the Cyano wallet browser extension for Ontology-based assets, and the MetaMask browser extension for transactions requiring the Ethereum network.
While the platform is not really a contender with Etheruem, the low fees have been attracting users, as shown by the rising TVL. Once all collateral has been wrapped and deposited on the Neo blockchain, all transactions on the Flamingo protocol have a fixed cost of 0.011 GAS and there is a option to choose a feeless transaction if the user is willing to wait a little longer for the transaction to process.
Competitive yields boost liquidity
When Flamingo originally launched, it offered simple staking and high yields to attract the initial pool of liquidity that helped get the ecosystem established. It has since shifted into offering yield opportunities for liquidity pool providers, especially on pools where there is a greater need for liquidity.
Liquidity pool staking rates on Flamingo Finance. Source:Flamingo Finance
As seen in the graphic above, all of the pools are paired with Neo and rewards are paid out in FLM token.
According to Flamingo’s Twitter feed, the protocol is now gearing up for the release of Neo 3.0, which began its Testnet launch on March 25. Once fully implemented, Neo 3.0 could see increased activity on the network and spark a rise in value for FLM as it’s the base pair for all of the liquidity pools.
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.
The Purpose Bitcoin (BTC) exchange-traded fund debuted on the Toronto Stock Exchange on Feb. 18 and has quickly ramped up trading volumes of about $400 million worth of shares in two days. This is quite impressive, considering that the equity market in Canada is only a fraction of the size of the U.S. markets. This shows strong demand for Bitcoin and investor’s preference to take the ETF route to establish fresh positions.
Last week, Bitcoin reached another important milestone when it hit the critical $1 trillion market capitalization on Feb. 19, making it the sixth asset on the list of top market cap companies in the world.
The involvement of institutional investors and a market cap of over $1 trillion could allay the concerns of manipulation and liquidity raised by the U.S. Securities and Exchange Commission in the previous years as it rejected Bitcoin ETF applications.
Crypto market data daily view. Source:Coin360
In a recent interview with CNBC, Ark Invest CEO Cathie Wood said that “the probability of an ETF has gone up.” Wood said the new SEC chairman Gary Gensler, who taught a digital currency class at the Massachusetts Institute of Technology, could be more open to crypto, increasing the likelihood of an approved Bitcoin ETF.
Although Bitcoin’s fundamental factors continue to improve, the near term could experience some turbulence due to the steepening of the U.S. Treasury curve.
Let’s analyze the charts of the top-5 cryptocurrencies that indicate the possibility of the resumption of the uptrend in the short term.
BTC/USD
Bitcoin broke above the resistance line of the ascending channel on Feb. 19 and the bulls have managed to sustain the breakout. This suggests that traders continue to buy at higher levels.
BTC/USDT daily chart. Source:TradingView
The BTC/USD pair had formed a Doji candlestick pattern on Feb. 20, indicating indecision among the bulls and the bears about the next directional move. That uncertainty has resolved to the upside today and the bulls will now try to propel the price to $60,974.43.
The 20-day exponential moving average ($47,450) is sloping up and the relative strength index (RSI) is in the overbought zone, which indicates that bulls have the upper hand.
Contrary to this assumption, if the price re-enters the channel, the bears will try to pull the price down to the 20-day EMA. A break below the channel will indicate a possible change in trend and the pair may then correct to the 50-day simple moving average.
BTC/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the pair remains in a strong uptrend and the bulls have aggressively purchased the dips to the 20-EMA. The bears will try to stall the current uptrend at the resistance line of the ascending channel.
If they succeed, the pair may again drop to the 20-EMA. A bounce off this support will suggest that the trend remains strong and the bulls are not waiting for a deeper correction to buy. The momentum could pick up if the bulls can propel and sustain the price above the channel.
On the contrary, if the bears can sink the price below the 20-EMA, it will suggest profit-booking by traders. The trend could weaken if the pair plunges below the channel.
AAVE/USD
AAVE has been consolidating between $392.50 and $545 for the past few days. A consolidation after a strong uptrend is a positive sign as it suggests that traders are not rushing to the exit because they anticipate higher levels in the future.
AAVE/USDT daily chart. Source:TradingView
The 20-day EMA ($427) is flat and the RSI is just above 56, which suggests that the range-bound action may continue for a few more days.
If the buyers can push the price above $480, the AAVE/USD pair may rise to $545. A breakout and close above the $545 to $581.667 resistance zone could start the next leg of the uptrend that may reach $697.50 and then $814.397.
On the other hand, if the bears can sink and sustain the price below $392.50, it will suggest that supply exceeds demand. That could start a deeper correction to the 50-day SMA ($297).
AAVE/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that the price has been oscillating between $500 and $392.50. If the bears sink the price below the $392.50 support, the pair could drop to $300 and then to the 61.8% Fibonacci retracement level at $267.094.
Contrary to this assumption, if the bulls can push the price above the 50-SMA, a move to $500 is possible. A break above this resistance will enhance the prospects of a move to $545 and then $581.667.
ATOM/USD
Cosmos (ATOM) is currently correcting in a strong uptrend. While the pullback is five days old, the bears have not yet been able to pull the price down to the 38.2% Fibonacci retracement level at $19.007. This shows a lack of sellers at lower levels.
ATOM/USDT daily chart. Source:TradingView
A shallow correction is usually a sign of strength and it increases the possibility of a retest of the $26.55 overhead resistance. The rising moving averages and the RSI in the positive territory suggest that bulls have the upper hand.
If the bulls can thrust the price above $26.55, the next leg of the uptrend could begin. The ATOM/USD pair could then rally to $32.173. If the bulls can conquer this level, the up-move may extend to $40.
On the contrary, if the pair continues to fall, a drop to the 20-day EMA ($18.19) is possible. A strong bounce off this support could keep the uptrend intact but a break below it will suggest a deeper correction to the 61.8% retracement level at $14.347.
ATOM/USDT 4-hour chart. Source:TradingView
The 4-hour chart is currently correcting inside a descending channel. The moving averages are on the verge of a bearish crossover and the RSI is in the negative territory, indicating a minor advantage to the bears.
However, if the price rises from the support line of the descending channel, it will indicate accumulation at lower levels. On a break above the moving averages, a move to the resistance line of the channel is possible.
A breakout and close above the channel could result in a retest of $26.55. On the other hand, a break below the channel may weaken sentiment. The pair could then decline to the 50% retracement level at $16.677.
NEO/USD
NEO broke and closed above the $47.444 resistance on Feb. 19. The bears attempted to fake this breakout and trap the aggressive bulls on Feb. 20 when they pulled the price back below $47.444.
NEO/USDT daily chart. Source:TradingView
However, the bulls had other plans. They aggressively purchased the dip and have pushed the price above the psychological resistance at $50 today. This may start the next leg of the uptrend that could reach $60.373 and then $64.95.
The upsloping moving averages and the RSI in the overbought territory indicate that bulls are in control.
But if the bulls fail to sustain the price above $50, it will suggest that traders are booking profits at higher levels. A break below the 20-day EMA ($37.80) will signal a possible change in trend.
NEO/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the formation of an ascending triangle, which has a pattern target at $58.588. Generally, the price turns down and retests the breakout level but sometimes, when the trend is strong, the price only consolidates before resuming the up-move.
The bulls are currently defending the $50 support. If the price rises from the current level and breaks above $54.191, the uptrend could resume.
This positive view will invalidate if the pair turns down from the current level and breaks below the triangle. Such a move may result in a fall to $36.30.
VET/USD
After the sharp rally from $0.026714 to $0.060774, VeChain (VET) has largely held the 38.2% support at $0.047763 on a closing basis, which shows accumulation at lower levels. The rising moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.
VET/USDT daily chart. Source:TradingView
If the bulls can drive the price above the overhead resistance at $0.060774, the VET/USD pair could start the next leg of the up-move. The target level to watch on the upside is $0.085172 and then $0.10.
Contrary to this assumption, if the bulls fail to propel the price above the overhead resistance, the VET/USD pair may consolidate between $0.060774 and $0.0424 for a few more days. The trend will tilt in favor of the bears if they can sink and sustain the price below $0.0424.
VET/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that both moving averages are flat and the RSI is just above the midpoint, indicating a balance between supply and demand.
However, the pair has formed an ascending triangle pattern that will complete on a breakout and close above $0.060774. This bullish setup has a pattern target of $0.079148.
On the other hand, if the price slips below the trendline of the ascending triangle, it will invalidate the pattern and open the doors for a fall to $0.042.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Decentralized finance is rapidly becoming a cornerstone of the cryptocurrency sector but the ecosystem has become increasingly centralized on the Ethereum network and this is causing the entire sector to be plagued by high gas fees and slow transaction confirmations.
Average Ethereum gas price. Source:Etherscan
This explosive rise in gas fees is leading users to look for other options and one alternative is Flamingo finance. The protocol is built on the NEO blockchain and designed with a focus on governance and interoperability.
Interoperability has also emerged as a prominent issue in the crypto sector as separate blockchains and isolated DeFi platforms need a way to communicate with each other and transact across protocols.
Value pegging when dealing with cross-chain assets has proven a challenge for protocols thus far and has recently become a focus of Flamingo developers.
Flamingo (FLM) price recently set a new high for 2021 as the DeFi protocol saw a surge in trading volume on Feb. 1 that helped its token double in value overnight.
At the start of 2021, FLM price was trading at $0.12 after falling from its previous all-time high of $1.59 in September 2020 at the tail end of the summer of DeFi. Since bottoming out in January, the price has steadily increased to its current value of $0.35.
FLM/USDT 4-hour chart. Source:TradingView
Three reasons for the recent 200% increase in the price of FLM include the recent expansion of governance features, having the first-mover advantage of DeFi on NEO blockchain, and record-high trading volume.
Trading volume spikes
Throughout the month of January, the 24-hour trading volume for FLM fluctuated between $6 million to $20 million. Between Jan. 31 and Feb. 1 purchasing volume saw more than a four-fold increase from the previous day putting in a record high 24-hour value of $93.4 million which pushed the price from $0.21 to $0.31.
A closer look at recent announcements from the project shows that the motivating factor behind the surge in volume was a new governance proposal that was released to the community to vote on.
Since the vote ended, FLM’s daily trading volume has dropped $29.7 million, the second-highest amount since September 2020.
FLM price vs. tweet volume. Source:TheTIE
As shown above, the price and volume spike also coincided with an increase in Twitter volume as community members responded positively to the announcement.
New governance features attract users
Coinciding with a spike in the buying volume of FLM was the release of the latest governance proposal for the Flamingo community, otherwise known as a Flamingo Improvement Proposal (FIP). This marks the second voting opportunity for members of the platform and is focused on redesigning the asset flow of the Flamingo platform in an effort to improve overall usability and asset interoperability.
According to Flamingo’s website, the proposed updates will help evolve the “sophisticated process of asset synthesization established at the initial launch,” to a more innovative design that will “optimize the cross-chain asset flow process while maintaining value pegging to the original asset.”
The redesign goals include: Restoring the Value pegging between cross-chain assets and their underlying original assets; Improving the robustness and future-proof-ness of Flamingo’s asset flow design; and continuing to develop Flamincome as the ultimate yield booster on Ethereum.
Using NEO blockchain gives Flamingo the first-mover advantage
Flamingo appears well-positioned to benefit from the continued expansion of decentralized finance and has the opportunity to corner the market on the NEO blockchain as it is currently the largest and most developed DeFi platform on the network.
Tokens available for staking include wrapped forms of Bitcoin (BTC), Ether (ETH) and Tether (USDT), as well as NEO, Ontology (ONT) and Switcheo (SWTH). Liquidity on the platform is currently around $100 million with a 24-hour volume of $3.4 million.
Liquidity and 24-hour volume on Flamingo. Source:Flamingo Finance
DeFi’s continued growth, as evidenced by increasing total value locked and 24-hour volume, will likely translate into positive developments for FLM in the future.
As token holders look for options to escape high gas fees on the Ethereum network, platforms like Flamingo, which offer the ability to transact in both BTC and ETH for the cost of 0.01 GAS, could see an influx of activity as a result.
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.
Blockchain.News interviewed Da Hongfei, the founder of the Neo blockchain, to understand more about the development of blockchain in China. (Read More)
