Cross-Chain Bridge Wormhole Launches On Algorand

May 18, 2022 1:48 pm Comments

The Jump Crypto-backed bridge named Wormhole has recently announced that it will be launching support for the Algorand blockchain.

This was not the first time that Wormhole had partnered with a blockchain network as it has had previous partnerships with with other layer 1 blockchains as well.

The goal for Wormhole is to increase interoperability across networks and the addition of Algorand will further the use of the Algorand network across other chains.

With Wormhole being known as one of the largest DeFi networks in the world, investors expect this to be a huge boost for the adoption of ALGO.

CoinTelegraph reports:

“Wormhole has quickly become one of the largest DeFi networks in the world,” Wormhole Foundation Director Hendrik Hofstadt said in a statement.

“The network plays a key role in enabling liquidity to flow into new ecosystems, which has a profound impact on the growth and expansion of decentralizing protocols, projects, liquidity, governance and participation.”

However, bridges have been historically prone to hacks, with critics saying they do not offer nearly as much security as the standalone blockchains they connect.

Wormhole’s Solana-Ethereum bridge was hacked for over $320 million in February, leading Wormhole backer and crypto market maker Jump Crypto to backstop the nine-figure exploit.

This also means that this will directly benefit existing ALGO holders as well because they will now be able to access liquidity that exists outside of the Algorand ecosystem.

As a result, this means that the use of the native token ALGO is now much more versatile and liquid which makes it a much more valuable asset.

Wormhole currently supports other popular blockchains such as Avalanche, Terra, and Polygon which gives Algorand investors a vast amount of liquidity at their disposal.

Many investors expect interoperability to be a vital component for blockchains in the future if they wish to continue to expand.

Yahoo reports:

“The integration of Algorand to Wormhole’s network is great news for builders of this ecosystem,” said Michel Dahdah of Rand Labs, an Algorand developer who collaborated with Wormhole on the integration.

“It will allow us to access all the liquidity that exists outside of Algorand, significantly boosting the TVL of the network.”

According to its website, Wormhole currently boasts integrations with blockchains Avalanche, Terra and Polygon, among others, and has racked up over $760 million in total value locked (TVL).

Algorand’s total TVL is currently valued at $136 million, according to DefiLlama.

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