Algorand Price Decline Boosted After Algofi Shut Down Announcement

Algorand Price Decline Boosted After Algofi Shut Down Announcement

Prominent proof-of-stakes blockchain network Algorand (ALGO) is likely to see its largest decentralized finance (DeFi) protocol shut down its operations. The DeFi protocol named AlgoFi managed to gain significant traction since its inception. Following the news of protocol winding up its operations, the already downtrending ALGO token price dropped more. 

In a blog post on Medium, Algofi announced ceasing of its operation in a community update on July 11. The post noted Algofi platform’s inefficacy to keep the company with high standards given a “confluence of events.” It added wind up operations on the platform and to moving to “withdrawal-only mode” soon. 

For further clarification and communication, Algofi suggested its users to stay connected through Discord. Along with the operations, it's also going to shut down all other social media accounts. Ensuring “seamless, unified communication” was cited for eroding the social media presence on other platforms. 

Algofi showcased gratitude towards the community and also shared various milestones it achieved throughout the timeline. 

The biggest DeFi platform on Algorand (ALGO) blockchain network reportedly raised funding of $2.8 million in 2021. Coinbase, Y Combinator, Jump Crypto and several other industry leading firms participated in the funding round. 

DefiLlama data suggests the significant drop in total value locked (TVL) over Algofi protocol. Currently, the TVL is at $15.68 million, significantly low from its peak of over $130 million in February this year. The TVL was at around the similar level in December 2021. 

 source - DefiLIama

Algorand (ALGO) price is currently trading at $0.107 dropping 2.55% in the last 24 hours. In the monthly time frame, the token price was doing relatively well where the trading price was around $0.140 in late June. ALGO token price lost most of its value in the last week following a decline of over 13%, according to the CoinMarketCap data. 

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