Reasons why Harmony (ONE) rounded back to its all-time high this week
The price of bitcoin is still a long way from its all-time high of $69,000, but that isn’t stopping altcoins from breaking new records.
According to the report, the price of Harmony (ONE) has climbed 163 percent since hitting a low of $0.13 on Dec. 4 to reach a new all-time high of $0.38 on Jan. 14.
An expanding ecosystem, the development of many cross-chain bridges, and developers’ interest in finding Ethereum network alternatives are three factors for Harmony’s growing strength.
ONE benefits from Harmony’s $300 million ecosystem development fund
Back in September, the project announced a $300 million developer incentive program to assist in support bug bounties, grants, and the construction of 100 decentralized autonomous organizations (DAOs) on Harmony, which was one of the largest boosts to the ecosystem’s general health.
Since the program’s inception, 23 DAOs have been financed and launched on the Harmony network, with more in the works.
Multiple protocols in some of the most popular sectors of the ecosystem, including as DeFi, payment platforms, and nonfungible token (NFT) projects, have been attracted to the Harmony blockchain thanks to the incentive scheme.
Cross-chain bridges help raise Harmony’s prospects
The launch of multiple cross-chain bridges connecting the Harmony network with other Ethereum Virtual Machine compatible networks like Celer and Polygon is another cause for Harmony’s recent strength.
Harmony developed a cross-chain NFT bridge as part of the Horizon bridge in November 2021, on top of the most recent integration with the Celer c-bridge, which facilitated the cross-chain transfer of USD Coin (USDC) and Wrapped Ether (wETH).
The project has announced a partnership with the L1 protocol Cosmos to build a bridge between the two fast-growing ecosystems in order to improve interoperability and scale cross-chain financing.
Harmony is also nearing completion on a native bridge to the Bitcoin network, which should be available by the end of Q1 2022.
New users and ecosystem growth back record high TVL
Another positive indicator supporting Harmony’s expansion is its soaring TVL, which has reached an all-time high of $1.25 billion, according to Defi Llama data.
On the Harmony network, several DeFi protocols are thriving, including DeFi Kingdoms (JEWEL), which has $747 million in TVL, Tranquil Finance, which has $201.85 million, and Viperswap, which has $54.4 million in TVL.
Prior to the latest price gain, VORTECSTM data began to detect a favorable prognosis for ONE on Jan. 8.
The VORTECSTM Score is an algorithmic assessment of past and present market circumstances produced from a variety of data points including market sentiment, trading volume, recent price changes, and Twitter activity.