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ETH · 6w

This Little-Known Crypto Asset Has Surged 1,350% in Less Than a Month – Here’s Why

A newcomer in the decentralized finance (DeFi) space is turning heads after skyrocketing 1,350% in a matter of weeks.

Alpha Finance Lab (ALPHA) shot from a low of $0.02 on November 3rd to a high of $0.29 just three weeks later, amid exponential spikes in trading volume. Its current price is $0.27, according to CoinGecko.

The decentralized lending protocol is backed by The Spartan Group and Multicoin Capital. The core product is a decentralized, pool-based lending protocol that allows users to earn interest by supplying supported assets. The interest paid by borrowers is distributed equally to lending liquidity providers.

Jason Choi, head of research at The Spartan Group, is touting the project’s developers and their early progress in the extremely risky and volatile DeFi market.

“Alpha Finance Lab is a team of young and driven DeFi coders and operators focusing on shipping synergistic products. In my opinion, this is where many DeFi protocols are heading, culminating in the rise of DeFi ‘super apps…’

Alpha first came to market with a simple product: a way for people to lever up on their DeFi yields. With Alpha Homora, users can lever up 3x to farm assets like SUSHI and UNI.

While Alpha takes advantage of DeFi’s composability (e.g. using Uniswap Protocol and SushiSwap, integrating with Aave today), it chose to vertically integrate products in-house. This enables faster execution and ease of implementing value capture later on.

If successful, I can see Alpha being home to a suite of products, all of which produce fees that accrue to ALPHA holders. Enriching early adopters and users can be a good way to create network effects.”

The native governance token ALPHA allows holders to stake their coins and earn a share of network fees. The tokens can also be used for liquidity mining and governance voting.

The platform is designed to work across multiple chains, including Ether...

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