The popular blockchain network – Elrond – has been getting a lot of traction lately, and this has propelled the price of its native EGLD token through the roof. It surged by almost 60% in three days.
Leading up to November 19th, EGLD’s price was around $300. However, last Friday, this changed drastically, and the token charted 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 those users of the trading venue 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 carry on follow-up programs “aimed at the 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.”
Elrond’s Turbulent Year
While EGLD’s price increase for the last couple of days of nearly 60% might sound impressive, its growth on a YTD (year-to-date) basis clocks at 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 firm 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 privacy 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.