Harmony (ONE) price is up 100% thanks to a $300 million incentive package.

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The price of ONE increased by more than 100% when the company announced plans to form a $300 million ecosystem development fund.

After a number of projects announced multi-million dollar funds targeted at encouraging builders and investors to make the cross-chain migration into the layer-2 ecosystem, protocol and community development initiatives have become the next trend in the cryptocurrency market.

Harmony (ONE), a blockchain protocol with 2-second transaction finality and cross-chain bridges to a number of layer-one protocols, is the most recent initiative to capitalise on this trend. including Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT) and the Binance Smart Chain (BSC).

Data from TradingView shows that since hitting a low of $0.095 on Aug. 31, ONE price rallied 120% to a daily high at $0.21 on Sept. 9 as its 24-hour trading volume spiked to $717 million.

ONE/USDT 4-hour chart. Source: TradingView

The surge in ONE price came after the project announced a new $300 million ecosystem fund aimed at attracting 10,000 developers and project founders to build on the protocol.

Aside from the development fund, Harmony price also benefited from the new partnerships and cross-chain integrations established over the past few months. The most recent development came with the Sept. 8 announcement of a partnership with Anyswap that will bring a Bitcoin bridge to Harmony.

See also  Galaxy Digital participates in a $50 million investment round for the crypto staking firm Figment.

Funding incentives ignite price rallies

Protocols’ recent establishment of community development funds is a fresh strategy for attracting liquidity.

Avalanche was among the first to do so, announcing its $180 million “Avalanche Rush” DeFi incentive campaign, which triggered a 200 percent increase in the price of AVAX.

Another case in point is Fantom, whose stock price has risen by 300 percent after the launch of its 370 FTM incentive scheme.

Other protocols that have launched similar initiatives recently include Terra, whose “Project Dawn”  launch allocates $150 million to help improve the Terra ecosystem and Algorand, which launched a $300 million Viridis DeFi fund aimed at maximizing the growth of the DeFi ecosystem on Algorand.

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