Protocol and community development initiatives have become the latest trend in the cryptocurrency market after a number of projects launched multi-million dollar funds aimed at enticing home builders and investors to cross-chain migrations into the Layer 2 ecosystem .
The latest project to benefit from this trend is Harmony (ONE), a blockchain protocol that has a 2 second transaction final and provides cross-chain bridges to a handful of Layer-One protocols, including Bitcoin (BTC), Ethereum (ETH). , Polkadot (DOT) and the Binance Smart Chain (BSC).
Data from Cointelegraph Markets Pro and TradingView show that the ONE price rose 120% from its low of $ 0.095 on August 31 to a daily high of $ 0.21 on September 9, while its 24-hour trading volume was up Has increased $ 717 million.
The ONE price spike came after the project announced a new $ 300 million ecosystem fund set to attract 10,000 developers and creators to build on the protocol.
Today we are announcing our $ 300 million ecosystem fund to accelerate 10,000 home builders.
the @harmonieprotokoll The ecosystem has grown exponentially and we want to fund 10,000 more crypto founders, builders and creatives.
Let’s shape the future together: https://t.co/6Yb9DoAa65
– harmony (@harmonyprotocol) September 9, 2021
In addition to the development fund, Harmony Price also benefited from the new partnerships and cross-chain integrations established in recent months. The latest development came on September 8th Notice a partnership with Anyswap that will bring a Bitcoin bridge to Harmony.
Related: New Fund Aims To Invest Hundreds Of Millions Into The Growth Of Algorand DeFi
Funding incentives trigger price rallies
Community development funds, which were launched through protocols last month, are the new tactics used to generate liquidity.
Avalanche was one of the first to announce its $ 180 million DeFi Incentive Program, Avalanche Rush, which was followed by a 200% rally in the AVAX price.
Another example is Fantom, whose price has increased by 300% following the announcement of its 370 FTM Incentive Program.
Other protocols that have recently launched similar initiatives include Terra, whose “Project Dawn” launch is providing $ 150 million to improve the Terra ecosystem, and Algorand, the started A $ 300 million Viridis DeFi fund that aims to maximize the growth of the DeFi ecosystem on Algorand.
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