Algorand Q4 2024 Report: DeFi Growth and Market Dynamics

In the fourth quarter of 2024, Algorand's total value locked (TVL) in decentralized finance (DeFi) increased by 216% quarter-over-quarter, reaching $417 million. This growth was primarily driven by increased activity from Folks Finance, Tinyman, and Lofty, along with key contributions from liquid staking and RWA tokenization. Meanwhile, the market value of stablecoins decreased by 50% quarter-over-quarter, mainly due to a reduction in $USDC usage. Network activity surged, with daily transaction volume increasing by 66% to 3.50 million transactions, and the number of new addresses rising by 176%, fueled by Coinbase Quests and staking reward expectations. Transaction fees rose by 124% to $144,000, reflecting the increased activity. In governance, the establishment of the xGov committee marked progress, with GP13 allocating 17.20 million $ALGO as rewards and shifting focus towards staking incentives. Technical upgrades such as NodeKit, along with collaborations in disaster relief and renewable energy tokenization, further expanded Algorand's practical applications. Algorand's market cap increased by 151% to $2.80 billion, with the $ALGO price rising by 149%, reflecting stronger adoption and investor confidence.