DWF, a prominent Singapore-based blockchain investment firm, has made headlines by depositing $2 million ALGO tokens valued at approximately $1.14 million, into cryptocurrency exchanges.
Since November 21, the Singapore based company has deposited a total of 16 million ALGO tokens worth $9 million. Such consequent purchases caught the attention of the market observers, who later started questioning the intentions of the company and its potential impact of the price of the token.
Market Reactions and Speculation Around ALGO Price Surge
Advertisement
Despite these large deposits, the token’s price demonstrated resilience, surging by 185% over the same time. Some analysts believe that such substantial token transfers to exchanges indicate a potential sell-off, which can create downward pressure on the prices. In this case, the opposite has occurred, indicating strong market demand and bullish sentiment around the token.
Some analysts believe and speculate that the price increase may be linked to growing confidence in the Algorand blockchain. The network’s consensus mechanism and recent partnerships with Nansen may also be responsible for the increased interest in the token.
At press time, the price of the token stands at $0.5736 with a surge of 24.2% in the last 24 hours.
As DWF Labs continues its strategic movements, traders are closely monitoring further developments. Any additional large-scale transfers could influence the token’s price.
Advertisement
Also Read: Reports Show High RLUSD Testing Ahead of Stablecoin Launch
