Algorand’s Largest Defi Protocol to Shut Down

Paigambar Mohan Raj
Source: Forkast News

Algofi, the largest Defi protocol on the Algorand (ALGO) blockchain, has announced its termination. According to an official blog, the platform will soon enter into withdrawal-only mode. The blog stated that a “confluence of events” led to the platform not being able to maintain its high standards.

Algofi was a Defi protocol that offered crypto lending, borrowing, and trading. It debuted on the Algorand (ALGO) blockchain during the peak of the previous bull run in 2021. However, the platform witnessed a sharp decline in activity in 2023.

Also Read: Web3 Gaming Continues to Dominate Defi Despite 8% Plunge

According to DefiLlama, Algorand’s TVL (total value locked) fell from $200 million in February, to around $59 million at press time. On the other hand, Algofi’s TVL fell from around $130 million in February, to around $32 million.

Source: DefiLlama
Source: DefiLlama

ALGO token has faced a series of bad events in 2023. The token was labeled in the SEC’s lawsuit against several crypto firms as an “unregistered security.” Consequently, on June 10, the asset hit its all-time low of $0.098399. At its highest, ALGO was worth $3.56. It is currently down by a whopping 96.91% from its ATH.

Gary Gensler praises Algorand in 2019

In a video from 2019, Gensler made some surprisingly positive comments about ALGO. According to Gensler, Algorand is a “great technology.” He used the project to illustrate the decentralization of crypto. However, he does admit that ALGO has its problems. These include the unresolved problem of software editing and the hazy definition of crypto tokens as securities.

Also Read: Pro-Crypto Lawyer Says SEC’s Gary Gensler’s “Days are Limited”

Moreover, Gensler has an even older connection with ALGO. During his time as a professor at MIT’s Sloan School of Management, Gensler had a professional relationship with Silvio Micali, who is the founder of Algorand (ALGO). At press time, ALGO was trading at $0.109887, up by 0.5% in the last 24 hours.

Also Read: Algorand Price Prediction July 2023