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Algorand's TVL Surges 300%: Will ALGO's Price Follow?

Algorand's Total Value Locked (TVL) has skyrocketed 300% in the past month, reaching $244 million before stabilizing at $184.5 million. This growth is driven by protocols like Folks Finance, reflecting renewed interest in Algorand's ecosystem.

Key Statistics:

- TVL growth: 300% in 30 days
- Folks Finance TVL: $284 million (289% increase)
- ALGO price: $0.4965 (maintaining a strong uptrend)

Market Analysis:

ALGO's price has mirrored the positive on-chain metrics, breaking above its 200-day moving average. However, the RSI suggests that ALGO is in overbought territory, indicating potential consolidation or profit-taking.

Volume Analysis:

Algorand's trading volume has surged, reaching 27.36 million on December 8. Network volume has also spiked, peaking at 2.33 billion ALGO in late November. This increased activity aligns with the explosive TVL growth and suggests heightened network engagement.