The popular blockchain network – Elrond – has been very successful lately, which has propelled the price of its native EGLD token through the roof. It jumped nearly 60% in three days.
EGLD’s Rally
Leading up to November 19th, EGLD’s price was around $300. However, last Friday that drastically changed and the token hit a new all-time high of around $ 492 today.
One of the main reasons behind the price expansion might have been the $1.29 billion liquidity incentive program, which Elrond introduced on Friday. The initiative aims to ‘supercharge’ the upcoming launch of the platform’s native decentralized exchange – Maiar.
According to the press release shared with CryptoPotato, the DEX will use its utility and governance token – MEX – to transfer the funding. $ 282 million of the total amount will be distributed in the first month to users of the trading platform who provide liquidity in EGLD, MEX and USDC.
Elrond has already distributed ownership to more than 60,000 accounts in the form of claimable MEX tokens. Beniamin Mincu – Founder and CEO of the blockchain network – said:
“By distributing Maiar DEX ownership to the next billion users, we lay the foundation for a truly global financial system that is accessible to everyone, everywhere.”
Beyond the first month of distribution, the project plans to continue monitoring programs “targeting users of the largest DeFi platforms in the ecosystem”. Those customers could “claim MEX tokens proportionally to their activity involving products such as Uniswap, Pancake Swap or Sushi Swap.”
The turbulent year of Elrond
While EGLD’s price increase over the past two days of almost 60% may seem impressive, its growth on a current year basis (YTD) is around 1,950%. On January 1, 2021, it was trading at $ 24.
The Maltese-based Elrond got involved in many projects and announced several developments on its network throughout the year. In August, it cooperated with Offsetra (a company that focuses on reducing CO2 emissions) and became the first carbon-negative blockchain company in Europe.
In October, Elrond partnered with Panther Protocol – a solution building scalable private infrastructure for the internet of blockchains. The collaboration aimed to bring interoperable confidentiality and selective disclosure mechanisms to the Elrond network.
Shortly after, the blockchain company announced it will purchase Capital Financial Services S.A. – a Romanian electronic money institution focused on e-money and e-payment solutions.
