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ALPHA, Alpha Finance Lab’s governance token, is up 152% in the past week. It is now the 85th most valuable cryptocurrency in the world market, breaking into the top 100 in a short time.

Behind its rapid rally are three key factors, namely Alpha Homora’s rapidly increasing total value locked (TVL), the overall positive market sentiment around DeFi and the emergence of Alpha Homora v2.

ALPHA / USDT 15-min price (Binance). Source:

What are ALPHA, Alpha Homora and AlphaX?

Alpha Homora is essentially a protocol that allows users to yield a farm using leverage.

The term yield farming means the process of providing liquidity to DeFi protocols to earn sustainable yield or APY. By using leverage, Alpha Homora allows users to provide liquidity to pools more efficiently.

Alpha Homora v2 adds several improvements to the first release. It adds more pool support on top of Uniswap such as Curve, Balancer and SushiSwap. This allows users to take advantage of a more diverse selection of pools to furnish a farm.

The v2 also allows users to hold leverage up to 9x, borrow multiple assets, and borrow or borrow assets other than Ethereum, as Band Protocol’s Sawit Trisirisatayawong explained.

Ultimately, Alpha Homora should be useful to the average limited capital DeFi user looking to maximize their returns.

AlphaX, the decentralized futures exchange, also strives to be beginner-friendly by removing and pricing manual futures funding percentage. The two main products in the Alpha Finance Lab ecosystem are both designed to serve casual users in DeFi.

With a market capitalization of $ 296 million, ALPHA is arguably considered a blue chip DeFi asset. But ALPHA’s price has significant momentum and is constantly rising.

The optimism surrounding ALPHA stems from the rapid growth of Alpha Homora’s TVL and the project’s active developer community.

Alpha Homora’s $ 618 million alone could justify a high valuation for ALPHA, by calculating the potential fees the protocol might charge in the future and by forecasting cash flow.

The existence of other major products like AlphaX that make Alpha a more comprehensive DeFi ecosystem has likely made ALPHA more attractive as a long-term DeFi bet.

The growth rate is optimistic

Alpha Homora is the fastest DeFi protocol to reach a TVL of $ 600 million in the history of the DeFi space.

Alpha Homora growth. Source: Alpha

The best DeFi protocols and lending platforms, such as Aave and Curve, took about six months to achieve the same TVL.

But while Alpha may have been launched as the DeFi space exploded, it’s still impressive that it was able to surpass the largest DeFi projects in the space.

In the longer term, there are several potential catalysts for the price of ALPHA.

In particular, the Alpha Finance Lab official document shows that ALPHA token holders may soon be able to receive some of the protocol fees through staking or providing liquidity. The document reads:

“Utility token for all Alpha products (eg. Provide liquidity or deposit to receive% protocol fees) (not yet implemented).”

More usability for the ALPHA token should act as a strong catalyst in the longer term and make the token itself more attractive.