Alpha Finance Lab (ALPHA) aims to maximize returns while minimizing risks for users by creating an ecosystem of interoperable decentralized finance (DeFi) products. Compatible with both Ethereum and Binance Smart Chain (BSC), Alpha products are focused on providing innovative and user-friendly solutions to capture unaddressed demand in DeFi. These products include decentralized lending protocol Alpha Lending, leveraged yield-farming platform Alpha Homora, and the upcoming non-orderbook perpetual swap product AlphaX.

ALPHA is the ecosystem’s utility token which can be staked to earn fees collected from all Alpha products. It also unlocks unique Alpha product features when staked and will be used to implement a two-tier governance system. The price of ALPHA has already seen some major changes in the short time it’s been on the market and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of ALPHA price — as well as the factors which influence it.

Alpha Finance Lab Price History

ALPHA was launched through the Binance Launchpad at a price of $0.02 per token in October 2020. It hit the market at this value on 10 October 2020 and surged as high as $0.19 during its first day, though it had fallen back to $0.05 by the second day. Prices mostly declined over the next three weeks, with ALPHA falling to $0.026 by early November. The rest of the month, however, was bullish and ALPHA’s highest value for November was $0.29. The first few days of December took prices to a peak of $0.31, although a couple of pullbacks that month saw ALPHA drop to a low of $0.14. The rally began to resume at the end of December and ALPHA finished 2020 with a value of $0.19, representing gains of 825% since the token’s launch.

January 2021 proved to be the strongest month yet for ALPHA. Growth became much steeper as prices doubled in the first week. A couple of weeks later, ALPHA broke past $1 for the first time, before going on to set a new high at $2.51. A retracement at the end of January and start of February briefly took prices below $1.70. This was followed by a further spurt of bullish momentum which took ALPHA up to its all-time high of $2.97 on 5 February. Prices fell sharply for the rest of February, and by the end of the month, ALPHA had dipped to lows of around $1. March was a bit more positive, recording a high of $2.40. These gains were mostly lost the following month, however, with prices dropping as low as $1.11. There was then a further surge at the end of April and ALPHA had reclaimed $2.50 by mid-May.

Analyzing Alpha Finance Lab Price History

ALPHA’s price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With ALPHA, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges. ALPHA experienced significant trading volume on its first day. The token was listed on Binance immediately, which made it more accessible to a wider audience and likely contributed to the large price surge of ALPHA during that day.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Alpha Finance Lab raised at least $3.67 million through token sales and won the Cosmos Cross-Chain hackathon in May 2020. The team also has a range of strategies for community growth. These could be good signs for the project’s fundamentals.

Broader market trends have also played a role in ALPHA’s price history. Its surge in the first quarter of 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

The pullback in April 2021 was also experienced by the whole cryptocurrency sector. One possible reason for this was the US government’s proposal at that time to significantly increase long-term capital gains taxes.

The overall price trend of ALPHA tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Alpha Finance Lab (ALPHA)

A variety of different things can affect the price of ALPHA, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

ALPHA has a capped max supply of 1 billion, making it a scarce asset, like Bitcoin. The token will be subject to a gradual emission rate until September 2026, when the max supply will have been released. As the supply will be increasing over the next few years, demand for ALPHA will have to increase at the same rate to maintain its price. After September 2026, however, any increase in ALPHA demand will boost its price.

The staking benefits that ALPHA provides will likely be a major driver of demand for the token. As staked Alpha earns a proportion of the fees from the whole Alpha ecosystem, more people could be encouraged to buy it for passive income. Staking ALPHA also unlocks unique features on the Alpha products, making it an attractive token to the users of said products.

These benefits should increase as the ecosystem expands to incorporate more products and users, raising the total value of fees generated. The price of ALPHA will therefore likely be positively influenced by project developments and integrations, while the planned governance system should add further value to the token.

Live Alpha Finance Lab Value and Market Cap

The live price of ALPHA varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given ALPHA’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Alpha Finance Lab is equal to the price of ALPHA multiplied by the number of ALPHA in circulation.

Alpha Finance Lab Price FAQ

How is the price of ALPHA calculated?

ALPHA’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying ALPHA than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of ALPHA different on different cryptocurrency exchanges?

ALPHA’s price is based purely on trading as there is no standard global ALPHA price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

What will ALPHA be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of Alpha Finance Lab. However, as more products and users join the Alpha ecosystem, the benefits of staking ALPHA will increase and likely boost its price.

Conclusion

Although Alpha Finance Lab hasn’t been around for very long, ALPHA’s price has already seen some significant changes, from being worth $0.02 at launch to reaching an all-time high of $2.97 just four months later. The price movements haven’t been smooth, however, as ALPHA’s volatility can lead to surges and crashes.

Many different factors have played a role in determining the price of ALPHA, including demand for staking benefits, the growth of the Alpha ecosystem, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Alpha Finance Lab and cryptocurrencies!