Protocol and community development initiatives have become the latest trend in the cryptocurrency market after a number of projects have launched multimillion-dollar funds aimed at attracting builders and investors to cross-chain migration into a Tier 2 ecosystem.
The latest project to capitalize on this trend is Harmony (ONE), a blockchain protocol that boasts 2-second transaction completion and offers cross-chain bridges to multiple tier protocols including Bitcoin, Ethereum, Polkadot, and Binance Smart Chain. Cointelegraph Markets Pro and TradingView data show that since hitting the $ 0.095 low on Aug 31, the ONE price has surged 120% to a daily high of $ 0.21 on Sept.9 as its 24-hour trading volume surged. up to $ 717 million.
The spike in ONE prices came after the project announced the creation of a new $ 300 million ecosystem fund aimed at attracting 10,000 developers and project founders to develop the protocol. In addition to the development fund, Harmony’s price has also benefited from new partnerships and integrations established over the past few months. The latest development came with the September 8 announcement of a partnership with Anyswap that will bring the Harmony Bitcoin Bridge.
Community development funds, launched by the protocols in the last month, are a new tactic used to raise liquidity. Avalanche was one of the first to do so when it announced its $ 180 million ‘Avalanche Rush’ DeFi incentive program, followed by a 20 percent rally in AVAX’s price.
Another example is Fantom, which has risen 300% in price since the announcement of its 370 FTM incentive program. Other protocols that have recently launched similar initiatives include Terra, which Project Dawn’s launch is committing $ 150 million to help improve the Terra ecosystem, and Algorand, which launched the $ 300 million Viridis DeFi Fund to maximize the growth of the DeFi ecosystem. on Algorand.