Altcoins News

Why did Olench grow 200% this month?

The Avalanche digital currency has grown by 200% in the past month. Experts believe that the network of this digital currency has unique features that have attracted the attention of investors.

to the Report Coin Telegraph, first-tier networks such as Bitcoin and Ethereum are the cornerstones of the digital currency ecosystem, and by supporting smart contracts, they enable the creation of new industries such as DeFi and NFT.

Olench is a relatively new decentralized platform and first tier solution that has recently experienced significant growth in price and its ecosystem. Meanwhile, Ethereum, the largest smart contract platform, continues to struggle with issues such as high transaction fees and slower processing speeds than its competitors.

Market data show that the Olench price reached its weekly high of $ 37.42 on August 20 (August 29) after reaching a level of $ 12.24 on August 3 (August 12), with a growth of 205%. Simultaneously with this growth, the 24-hour trading volume of this digital currency exceeded $ 1.4 billion.

Why did Olench grow 200% this month?
Ghima Olench chart (4-hour view of Olench market / Tetra)

The rapid growth of the Defy Olench ecosystem, the construction of a bridge to the Ethereum network, and the unique Tokenomic design of this protocol, which supports variable fees and token burning mechanisms, are the main reasons for the digital currency’s price growth.

Tokenomic design is a structure that enables a project to provide the required financial resources within the network.

Defy industry growth in the Olench ecosystem

One of the most recent developments for the Olanche Protocol was the launch of the Avalanche Rush. Olench Rush is a $ 180 million liquidity incentive program launched in conjunction with the Aave and Curve Finance protocols, which aims to launch new programs to help grow the Olench defense ecosystem.

In the first phase of the program, which is to be implemented in the near future, the Olench digital currency will be used for a period of 3 months in an incentive role for Avi and Crow users who participate in the liquidity extraction process.

Extracting liquidity means injecting liquidity into defy platforms. In this way, volunteers provide the liquidity needed by lending platforms or decentralized exchanges through liquidity pools and receive a portion of the collected fees as a reward.

The Olench Foundation has allocated a total of $ 27 million of its tokens to fund the first phase of the incentive program, with more to be injected into the second phase.

The program is designed to prove that the Olench Foundation wants to expand decentralized finance into its network and build a protocol that is more accessible, decentralized, and cost-effective than other protocols.

The increase in locked-in capital in oolong-based protocols indicates that the network’s decentralized finance ecosystem is growing; Such as the Pangolin and Benqi Finance protocols, in which the amount of locked-in capital recently exceeded $ 300 million.

Also read: The most comprehensive defense training; From garlic to onions, decentralized platforms

Make it easier to transfer assets with the Olench Bridge

The second factor influencing the price growth and development of the Olench ecosystem in recent weeks is the launch of the Avalance Bridge on July 29. This new generation of mid-chain communication technology enables the transfer of assets between oolong and Ethereum-based networks.

Why did Olench grow 200% this month?
The volume of Olench Bridge transactions

As can be seen from the image above, more than $ 100 million in tokens have been exchanged between the Olench network and Ethereum just three weeks after the launch of the Olench bridge. The reason for this welcome is the tendency of investors to use programs that process transactions at a lower cost.

The Olench Foundation claims that the cost of processing transactions on the Olench Bridge is five times cheaper than the network’s previous bridge, and that the new version has a better user experience than all the mid-chain bridges offered to date.

If Ethereum fails to address the issue of high network transaction fees in the near future, it is likely that more assets and cash flow will flow into protocols such as Olench, as the value and size of the defense ecosystem of these networks grows.

Burn transaction fees and improve tokonomic features

The third issue that has increased investor interest in the Olench network is the unique structure and technology of this protocol. Olench has a mechanism for burning transaction fees that will help reduce the total supply of tokens in the network in the long run.

As the Olench Foundation has said, the complete burning of commissions will benefit all members of the digital currency community, as it will reduce the total supply of 720 million units of the digital currency in the long run and increase the price of the remaining tokens.

As of this writing, more than 163,000 Olench tokens have been burned. It should be noted that the burning of these tokens will be faster with the increase in the number of transactions of Olench users.

The Olench network fee mechanism is scheduled to enter the third phase on August 24 (September 2). With the implementation of this update, Olench mid-chain fees will be determined in proportion to the supply and demand of the network.

The launch of the third phase allows for the payment of additional fees based on processing time. It should be noted that this increase must be in the allowable range of 0.00000000075 to 0.000000225 units of Olanch and Block Gas with a limit of 8 million gas.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button