Algorand secures $500M funding to support next gen DeFi & NFT projects
- Algorand has acquired half a billion dollars from VC Borderless Capital to power the “next generation” of DeFi and NFT projects on the network.
- The ALGO token is up 481.5 percent this year despite failing to re-achieve its all-time high of 2 years ago.
Algorand (ALGO) has received a $500 million fund from venture capitalist Borderless Capital to back its projects.
Based on a Nov. 30 announcement from the Miami-based company, the Borderless ALGO Fund II will back Algorand network projects. These are expected to power the “next generation” of decentralization applications (DApps) on the blockchain.
Specifically, Borderless Capital looks to support the booming non-fungible token (NFT) and decentralized finance (DeFi) projects. NFTs, the firm notes, allow it to “disrupt the creators’ economy” as it bolsters funding into Algorand’s DeFi ecosystem.
We are excited to announce the launch of our $500M Borderless ALGO Fund II!https://t.co/EP0U6Ib8HV pic.twitter.com/okXf6GBFo8
— Borderless Capital (@borderless_cap) November 30, 2021
Just a few days ago, Algorand gained another technology partner in Hivemind Capital Partners. Former Citi executive, Matt Zhang, introduced the $1.5 billion crypto investment vehicle on Nov. 29, alongside its very first partner, Algorand. The multi-strategy fund will back promising crypto projects including virtual worlds, infrastructure projects and programmable money.
Algorand achievements
Launched in mid-2019, Algorand comprises an open-source decentralized blockchain developed by computer scientist Silvio Micali. It focuses on delivering speed, security and stability. Growth of the Algorand network this year has placed it in the category of strong Ethereum competitors. Even PayPal is considering using it to scale its payments technology. Arul Murugan, the founding managing partner at Borderless Capital stated;
Algorand is the most efficient next-generation blockchain software in the market right now, and it is the next frontier for investment opportunities and disruption,
The latest funding from Borderless Capital adds to the $400 million that the company currently manages in Algorand. Even more, the firm contributed $10 million to PlanetWatch, a decentralized air liquidity monitoring network based on the Algorand blockchain.
In addition, Algorand launched its virtual machine (AVM) in September to deliver negative carbon output. The upgrade would also enhance scalability and instant transaction finality on the network.
According to DeFi Llama, Algorand is currently the 36th largest blockchain in terms of $97.4 million total value locked (TVL) in DeFi. The lead project on Algorand is Yieldly (YLDY), a DeFi platform offering a suite of DeFi apps, with a TVL of $68.4 million.
ALGO price action
Based on our data, ALGO has gained 7.3 percent in the day to trade at $1.90 at writing time. The asset has also gained 481.5 percent in the last year. ALGO’s all-time high was over two years ago, when it briefly topped $3.50 in June 2019. Soon after, the asset fell below the $1 mark. With developments and increased coverage of the network, the token might just take flight towards its record high and beyond.
