3 reasons why Harmony (ONE) rallied back to its all-time high this week

Although Bitcoin’s current price is not at its $69,000 high, this doesn’t stop altcoins moving towards new heights.

Cointelegraph Markets Pro and TradingView data show that Harmony (ONE), which hit a low of $0.13 Dec. 4, has seen a 163% increase to reach a record high of $0.38 Jan. 14.

ONE/USDT 1-day chart. Source: TradingView

The growing strength of Harmony can be attributed to three factors: an expanding ecosystem, multiple cross-chain bridges launched and developers’ interest in alternative networks to Ethereum.

One benefits from Harmony’s $300 million ecosystem fund

The Harmony ecosystem’s overall health was boosted by the launch of a $300 million incentive program for developers in September. This program is designed to fund bug bounties, grants, and the creation 100 decentralized autonomous organisations (DAOs), on Harmony.

23 DAOs were funded and launched via the Harmony network since the launch of this program. More are currently being developed.

Incentives have also been used to attract protocols to Harmony blockchain, in the most popular sector of the ecosystem including DeFi payment platforms and nonfungible token projects (NFT).

1/ @harmonyprotocol approves 21 more proposals for its $300M Ecosystem Fund DeFi: @epnsproject @AnChainAI @perpprotocol @freyalacrypto Payments: @Allbridge_io @MIM_Spell @klever_io @Trustee_Wallet NFT: @TheDeFimons @KangaFinance @StoreyTheApp @NiftyRow And more pic.twitter.com/zxyl4Z3wWJ
— Harmony (@harmonyprotocol) January 13, 2022

Cross-chain bridges increase Harmony’s prospects

Harmony’s recent strength can also be attributed to the launch of cross-chain bridges, which connect Harmony with other Ethereum Virtual Machine compatible network like Celer or Polygon.

1/ We are pleased to announce that @CelerNetwork now supports @harmonyprotocol. ONE users now have the ability to use the multi-chain cBridge to instantly transfer $USDC or $WETH at a very low cost. Continue reading
— Harmony (@harmonyprotocol) January 12, 2022

Harmony launched a cross chain NFT bridge in the Horizon bridge, in November 2021. This was on top of the Celer cbridge integration that enabled cross-chain USD Coin (USDC), and Wrapped Ether(wETH) transfers.

Recently, the project announced a collaboration with Cosmos L1 protocol to build a bridge between these rapidly growing ecosystems. This will allow the project to expand its interoperability as well as scale cross-chain financing.

1/ We are pleased to announce that @datachain_en has been granted a grant to help build a bridge between Harmony and @cosmos. Datachain has unparalleled experience in interoperability solutions built using trustless intermediaries. ONE step closer towards scaling cross-chain finance pic.twitter.com/27ueWWUkT0
— Harmony (@harmonyprotocol) January 12, 2022

Harmony is currently in the final stages to create a native bridge to Bitcoin, which will be available before the end Q1 2022.

Related: ICON contributes $200M to Interoperability Incentive Fund

Record high TVL for new users and ecosystem growth

A bullish metric that supports Harmony’s growth, is its rising TVL. According to data from Defi Lama, it is at an all-time high $1.25 trillion.

Harmony is the total value Source: Defi Llama

Several DeFi protocols are thriving in Harmony, including DeFi Kingdoms(JEWEL), which accounts to $747 million of TVL, Tranquil Finance (with $201.85million) and Viperswap (with a $54.4 million TVL).

VORTECS(tm), data from Cointelegraph Markets Pro started to detect a bullish outlook on ONE on January 8, before the recent price rise.

Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is based on a combination data points, including trading volume, market sentiment and recent price movements, and tweet activity.

VORTECS(tm), Score (green) vs. the ONE price Source: Cointelegraph Markets Pro

The chart shows that the VORTECS(tm), Score for ONE spiked to the green zone Jan. 8, and reached a peak of 75 approximately 48 hours later. After this, the price increased 50% over the next four day.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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