Fleeing high DeFi fees flocked to Flamingo (FLM)

The decentralized finance (DeFi) industry is becoming one of the cornerstones of the cryptocurrency ecosystem, but the dependence on the Ethereum network reveals high transaction fees and slow approval processes.

Average Ethereum Gas price. Source: Etherscan

This rapid increase in gas prices drives users to other options. An alternative is Flamingo finance… The protocol is built on the Neo network and designed with a focus on interoperability.

The system, which serves to communicate separate blockchain networks and DeFi platforms, is preferred by offering interoperability.

The DeFi protocol saw a huge increase in transaction volume as of February 1. Consequently, the Flamingo (FLM) price also reached its highest value in 2021 recently. The price of the FLM token has doubled overnight.

At the beginning of 2021, FLM fell after hitting its all-time high of $ 1.59 in September 2020 and was trading at $ 0.12. Since hitting bottom in January, the price has risen steadily and is currently trading at $ 0.35.

4-hour chart for FLM / USDT pair. Source: TradingView

Three reasons for the 200 percent increase in the FLM price; The recent expansion of its governance features is listed as being the first name to offer DeFi integration in the Neo blockchain network and see record levels of transaction volume.

Transaction volume increases

During the month of January, 24-hour FLM trading volume fluctuated between $ 6 million and $ 20 million. Between January 31 and February 1, acquisition volume more than quadrupled from the previous day and reached $ 93.4 million.

A closer look at the recent announcements from the project reveals that the motivating factor behind the increase in volume is a new governance solution offered to the community for voting.

Comparison of FLM price and tweet volume. Source: TheTIE

The correlation of price and volume growth, as shown above, reveals that community members have responded positively to the announcements.

New management features attract users

Coinciding with the increase in FLM’s purchasing volume, another development was the announcement of the latest governance solution for the Flamingo community.

According to Flamingo’s website, the proposed updates will help transform the “advanced asset synthesis process created at the first launch” into a more innovative design that “will optimize the cross-chain asset flow process while maintaining the value peg to the original asset.

Neo blockchain gives Flamingo a first mover advantage

Flamingo appears to be well positioned to take advantage of the ongoing expansion of decentralized finance. Said to be the largest and most advanced DeFi platform on the network, Neo offers a transition to the blockchain network.

Available tokens to stake include Wrapped Bitcoin (BTC), Ether (ETH), and Tether (USDT) forms, as well as NEO, Ontology (ONT) and Switcheo (SWTH). Liquidity on the platform is currently around $ 100 million and the 24-hour volume is $ 3.4 million.

Flamingo liquidity and 24 hour volume. Source: Flamingo Finance

The continued growth of the DeFi industry will likely translate into positive developments for FLM in the future, as evidenced by the increase in total locked assets and 24-hour volume.

Platforms such as Flamingo, which offers the ability to trade in both BTC and ETH for a cost of 0.01 GAS, can see significant activity growth, as Token holders are looking for options to escape high Gas fees on the Ethereum network.

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