Folks Finance has, through a blog post, announced its plans to launch the Algorand Liquid Staking Protocol xALGO. It will be the primary Liquid Staking protocol for ALGO, with a core focus on providing flexible and simple access to rewards distributed to node runners who participate in Algorand Consensus. It marks a shift from the Governance Model to the Consensus Reward Model.
Individuals will now be required to stake their tokens through nodes and contribute to the block consensus. Rewards were previously distributed to Governors who would commit ALGO through a web app to cast their vote on chain-wide decisions.
The announcement has had little impact on ALGO’s value. The token is down by 0.97% in the last 24 hours, listed at $0.1392 as the article is being drafted. It further reflects a decline of 3.28% and 27.91% over the last 7 days and 30 days, respectively.
Folks Finance is confident about the transition to xALGO. The DeFi platform on Algorand has said that it will help them deliver a more pleasant experience. It will not only increase liquidity but also provide greater flexibility, as well as a wider range of potential strategies. The ultimate aim is to secure a position in the market as the best crypto staking platform. The list already houses the likes of OKX, Yield App, and Aave, among others.
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That said, ALGO’s market cap has dipped by 1.10%, and the 24-hour trading volume is down by 8.93% at the press time. The token is trading at 13% volatility and has a 14-day RSI of 38.05. In the same order, the 50-day SMA and 200-day SMA come to $0.172621 and $0.200369, respectively.
The development comes days after Folks Finance expressed its commitment to continue the Targeted DeFi Rewards Initiative in Governance Period 1.2.
As for Algorand, it has launched LiquidAuth to combat the WalletConnect vulnerability. It is a new tool that works to decentralize wallet authentication and communication within the crypto realm. LiquidAuth essentially enables secure and peer-to-peer connections while reducing reliance on central providers.
Moving forward, Algorand is aiming to achieve near-term predictions except for the monthly estimate which brings out a bearish value. ALGO is predicted to reach around $0.141151 in the next 5 days and then drop to $0.128049 in the next 30 days. As a result, fluctuations are likely to spread throughout the year, with Bitcoin and Ethereum leading the trend. In recent times, both crypto giants have failed to maintain their highs. Thereby, they put pressure on others to keep up with the dance on the price charts.
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Floks Finance brings out xALGO when there is a need to instill a sense of confidence within the community. It could actually work out for the best—at least for ALGO. An actual outcome remains to be seen after a couple of months of performance.
