A sharp drop in the market is something that no holder wants, but it is also an opportunity for us to find Gems for the next bull wave.
Series On-chain #2 will give you a realistic view of what is going on with projects today, to see if the recent price drop is due to the project or the market.
This time we will come to the project that is quite interested by many brothers, Alpha Finance (ALPHA).
What is Alpha Finance?
Alpha Finance Lab (ALPHA) focuses on building an ecosystem of financial products and services, serving users on different blockchains. The main product of the current project is Alpha Homora, which allows users to farm yield using leverage, Alpha Homora is available on both Ethereum and Binance Smart Chain.
In addition, the project will have other products in the future such as Alpha X – a product that elevates the perpetual contract (perpetual contract) and Alpha Asgardian – an options trading product.
About 2 months ago, I analyzed ALPHA On-chain data, you can read it again to better understand the project situation before the market crashed like this.
This article will analyze Alpha’s current On-chain data. After 2 months, what has the project done? Is ALPHA token price plummeting due to underperforming products?…
Let’s get started!
On-chain data analysis of Alpha . products
Alpha currently has 2 main products:
- Alpha Homora: Allows users to use leverage when going Farm.
- Alpha Staking: Allows ALPHA-holder to staking ALPHA to get more revenue from products.
We will take a look at the On-chain data of these two products in turn.
Alpha Homora is currently Alpha’s main product.
In the first On-chain Alpha analysis, the TVL of Alpha Homora was at $900 M. On-chain analysis at that time showed that the project was showing signs of recovery and development.
And indeed TVL has grown very quickly, to a peak of $1.8B, twice as much as at the time of analysis.
However, because it is a product that allows users to use leverage, when the market is volatile, the loss of Alpha Homora is also very high.
During the last correction, Alpha Homora’s TVL dropped sharply, from $1.8 B to $900 M.
Such is the risk of the user and also the risk of Alpha Homora when using and providing leveraged products.
Currently TVL on Alpha Homora (including V1 and V2) is recovering to $1.1 B TVL. The product is currently thriving on Ethereum, with over 90% of TVL coming from the platform.
Basically, Alpha Homora is a breakthrough product and currently has a near monopoly on this leveraged yield farming. Therefore, we can fully expect this number to recover and grow again in the near future.
Alpha Staking is a new product launched from the beginning of April of Alpha Finance.
Brothers when Staking ALPHA will receive a part of the revenue from all Alpha Finance products, and receive many new features.
In general, this is a very beneficial product for ALPHA holder, so this product is used by many people.
Currently, up to 25% of ALPHAs on the market participate in Staking in Alpha Finance, equivalent to ~$69.6 M being locked.
Since the release of the Alpha Staking product until now, the market in general has been very volatile, but On-chain data shows that the number of ALPHAs being taken to Staking has increased steadily. Even during the recent sharp decline, not many ALPHAs were withdrawn.
That shows, the ALPHA Stakers are very confident in the project.
On-chain data analysis of ALPHA token
Token Distribution ALPHA
There are currently more than 285M tokens in circulation (up 35M tokens compared to 2 months ago).
Among them, about 65M tokens are being stored on the exchange, the rest are in personal wallets.
In the past 1 week of volatile market, it can be seen that the number of ALPHAs on exchanges increased sharply but then gradually decreased, while the number of ALPHAs in the hands of DEX traders decreased slightly from 365 M ALPHA tokens to 330. M ALPHA token.
Thereby we can derive:
- The selling force of ALPHA in the market is still high.
- Some Traders have sold tokens, but this number is not much.
ALPHA balance fluctuations on exchanges
Dive deeper into balance analysis across exchanges.
Considering the last 7 days, there have been nearly 7M ALPHA tokens withdrawn from other exchanges, mostly from Binance and FTX.
This is a good sign for ALPHA holders, tokens that have started to be withdrawn from the exchange will reduce the strong selling force due to ALPHA being pushed to the exchange earlier.
Balance fluctuation in TOP 10 ALPHA Holder in the past 7 days
Statistics on balance fluctuations in TOP ALPHA Holder, we get the following table of data:
- 8 holders do nothing, just observe.
- 1 holder strongly bought nearly 8 million ALPHA tokens.
- 1 holder strongly sold nearly 2 million ALPHA tokens.
In total, TOP 10 Holders currently hold more than 32 Million Tokens, an increase of 6 Million Tokens compared to 2 months ago, most of the Holders are still inactive, just holding tight and observing.
Summarizing the Alpha Finance project data analysis (ALPHA), we can draw some main ideas as follows:
- In terms of products, TVL of Alpha Homora, after doubling to a peak of $1.8B, has corrected and is showing signs of recovery.
- Users are very interested in Alpha Staking products, the number of ALPHA being taken to Staking currently accounts for 24% of the ALPHA in the market.
- Regarding ALPHA Token, there were many ALPHA tokens transferred to the exchange in May, proving that the selling force is still very large.
- But if you consider 1 week back, nearly 6 million Alpha was withdrawn from the floor, showing that the selling force is decreasing.
- The TOP 10 Holders are mostly still watching and have not made any moves.
Alpha Finance is a project to develop an ecosystem of financial products and services, serving users on different blockchains.
In the future, the project will develop more products such as Alpha-X, Alpha-Asgardian. The Alpha Finance team is also highly appreciated, so we can completely believe in the recovery and development of the project in the future.
Above are the analysis of On-chain data of Alpha Finance project (ALPHA). ALPHA holders, after reading the article, will you continue to hold or sell in this price round? Please leave your comments in the comment section so that we can exchange and discuss.
See you in the next “Onchain Microscope” issues.