Algorand Funds Hit $20 Million in Weekly Inflows: New Products and Partnerships Announced

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According to market data, Algorand-based institutional investment products saw record inflows of $20 million last week. This increase in funds in the DeFi-focused protocol is likely due to a slew of new product launches and new partnerships, including one with the Nigerian government to create a state wallet and blockchain-powered IP marketplace.

Crypto Inflows Exceed Half a Billion Dollars

Interestingly, despite the price drop, the record influx into the Algorand blockchain coincides with a good week for crypto. Approximately $86 million was invested in various digital investment products, bringing the value of investments year-to-date to $0.52 billion. However, the recorded value is lower than last year’s data.

Although not significant, last week’s influx is in line with what happened in 2021. As the graph shows, 2021 saw wild fluctuations in inflows within the ecosystem, from week positive to massive releases the next. This swing is different from the latter part of 2021, which saw positive net inflows.

The weekly crypto-asset flow data somewhat mirrored the general state of the market, giving investors a general idea of ​​the prevailing sentiments. The $1.4 billion recorded in 2021 coincides with Bitcoin surging to its all-time high of $69,000. Since then, the general market downturn has been represented by low inflows and a large sell-off in crypto assets.

Consequently, Bitcoin recorded inflows of $69 million last week, bringing the year-to-date total to $369 million. Nevertheless, its total assets under management is still lower than in July 2021 due to market weakness.

In contrast, Ethereum continued its downward trend, with outflows totaling $11.6 million. This brings year-to-date net outflows to US$250 million, in stark contrast to most other cryptocurrencies like Algorand. Other altcoins like Solana and Tron saw positive inflows with $1.8 billion and $0.4 billion respectively.

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Nigerian Government to Launch National Wallet and IP Marketplace on Algorand

Algorand’s recent launches and partnerships were the foundation for the record influx it saw last week. One of its current partnerships will see the Nigerian government develop a national IP portfolio and marketplace.

Reports suggest that the Nigerian government has signed an exclusive three-year IPR (intellectual property rights) agreement with Developing Africa Group. The deal allows the regional software development company to develop and launch a national portfolio. This will enable the international commercialization of all forms of intellectual property created and registered in the country, both locally and internationally.

Contextually, the Developing Africa group would be solely responsible for building the official country platform. This will allow citizens to upload any form of intellectual property rights and trade or trade them while collecting royalties and revenue in their wallets. The agreement covers intellectual property rights like trademarks, patents, and copyrights for content like songs, lyrics, videos, shows, talks, podcasts, and streamable content.

Therefore, Koibanx, a smart contract and blockchain technology company, was chosen as the tokenization and payment engine for the project. Koibanx will develop the wallet, the token for the IP on sale and a stablecoin of the same value as the Naira. In addition, he will be responsible for integrating the system with various vendors to be announced prior to product launch.

The entire platform would be developed and run on the Algorand blockchain, using an eco-friendly proof-of-stake consensus mechanism. Recently, the ecosystem also signed an agreement with FIFA to provide blockchain wallet solutions to the football governing body. Ben Oguntala, CEO of Developing Africa Group, praised the ecosystem. He said,

“Algorand’s protocol not only provides the performance, scalability, security and functionality required to implement such a large project, but it is also environmentally friendly, which is important for the government and has a huge philosophical correspondence with the creator economy industry “we” I target here.

Algorand’s public open-source blockchain architecture was founded by Turing Award-winning cryptographer Silvio Micali. It enables interoperability and can handle the volume of transactions needed for DeFi, financial institutions, and governments to successfully transition to FutureFi. Algorand is the platform of choice for over 700 global enterprises, making it easy to build next-generation financial products, protocols, and value exchanges.

Meanwhile, the new initiative, which is expected to launch before January 2023, proves that Nigeria is a leading force in crypto globally. Last year, it became the first African country and the third in the world to establish a central bank digital currency (CBDC). Despite this, the government has still blocked local banks from carrying out crypto transactions amid suggestions of agents being planted on multiple platforms to deceive citizens.

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Do you think Algorand is ready for even more institutional investment due to the nature of the products it offers and the demand for more environmentally friendly blockchains? Let us know your thoughts in the comments below.

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