After a number of projects announced multi-million dollar funds targeted at encouraging builders and investors to make the cross-chain migration into the layer-2 ecosystem, protocol and community development initiatives have become the next trend in the cryptocurrency market. Harmony (ONE), a blockchain protocol with 2-second transaction finality and cross-chain bridges to a handful of layer-one protocols, including Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), and the Binance Smart Chain, is the latest effort to capitalise on this trend (BSC).
According to data from Cointelegraph Markets Pro and TradingView, since hitting a low of $0.095 on Aug. 31, the ONE price has rebounded 120 percent to a daily high of $0.21 on Sept. 9, with a $717 million 24-hour trading volume.
After the organisation announced a new $300 million ecosystem fund aiming at attracting 10,000 developers and project founders to build on the protocol, the price of ONE skyrocketed.
Today, we are announcing our $300 million ecosystem fund to accelerate 10,000 builders.
The @harmonyprotocol ecosystem has been growing exponentially and we aim to fund 10,000 more crypto founders, builders and creatives.
Let’s build the future together: https://t.co/6Yb9DoAa65
— Harmony (@harmonyprotocol) September 9, 2021
Harmony pricing benefited from new collaborations and cross-chain integrations built over the last few months in addition to the development fund. The most recent development came on September 8, when Anyswap announced a partnership with Harmony that will introduce a Bitcoin bridge to the platform.
Price increases are sparked by funding incentives.
Protocols’ recent establishment of community development funds has been a fresh strategy for attracting liquidity.
When Avalanche unveiled its $180 million “Avalanche Rush” DeFi incentive scheme, the stock skyrocketed 200 per cent.
Fantom, for example, has seen its stock price rise by 300 per cent since the launch of its 370 FTM incentive programme.
Terra, whose “Project Dawn” launch provides $150 million to help strengthen the Terra ecosystem, and Algorand, which announced a $300 million Viridis DeFi fund targeted at optimising the growth of the DeFi ecosystem on Algorand, are two other protocols that have recently launched comparable efforts.