Acala (ACA) – Why is It Surging?

Acala is aiming to do something big in the next week. A week where decentralized finance (Defi) oriented protocols have gained momentum, Acala is also trying to leave its mark in the market.

Acala is actually a liquidity hub of Polkadot. Basically, it’s a later-1 smart contract platform that’s scalable, Ethereum-compatible, and optimized for Defi with built-in liquidity. It has been decentralized financial applications to be used on its platform as well.

Acala claims to be the novel idea that aims to deliver a set of protocols that will aim at becoming Polkadot’s Defi building block. The plan is to ensure the creation of a sound and stable currency that is specialized and secured. Thus the stablecoin created by Acala would be multi-collateral and its value will be pinned to the dollar as far as possible.

In the coming week, Acala is going to enable a 1-way bridge to invite DOT (the utility token of Polkadot) transfers. This means that DOTs can easily be exchanged for USD. Furthermore, this is also going to enable DOT transference for mining liquidity and their incentives along with other Defi functions.

But there does lie a problem here that Acala is trying to resolve. Even though DOT can be transferred to Acala, there isn’t a transferring option available for the other way around. With the launch of their DOT bridge, there is an expected Acala Swap. It is going to launch its LCDOT/DOT with LP incentives.

These are big things happening and considering how Polkadot is the 10^th ranked cryptocurrency. One of its objectives is true interoperability, this is might be a big step. So we can expect some positive movement from the coin in the coming month.

Price Movement – Acala (ACA)

At the time when this article is being put down into words, the current value of the ACA, the utility token of ACA, is $1.61 which is an increase of 23.64% increase over the past twenty-four hours with its lowest value in the day being around $1.22.  Its trading volume is $49,954,634 which is an increase of 231.07% over the past twenty-four hours. This can be directly attributed to the announcement of the launch of the layer-1 relay bridge. Another thing to consider is how stablecoins are venturing well even though the market is in a slump.