What does the $725M ecosystem fund mean for the FLOW token?

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Flow FLOW/USD is a layer-2 blockchain network specifically created to power applications that deal with non-fungible tokens (NFTs).

These include games, apps, and all other digital assets. It was created by Dapper Labs as a means of supporting a high level of transactions per second (TPS) and minimizing environmental costs.

The $725 million ecosystem fund as a catalyst for growth 

Dapper Labs, which is the company that created the NFT and gaming-focused blockchain known as Flow, announced that they are launching a $725 million ecosystem fund through a press release on May 10.

This is one of the largest funds used when it comes to the support of a blockchain ecosystem to date. 

Flow as a blockchain network currently supports NBA Top Shot, for example, alongside other NFT and gaming projects. 

This is a fund that includes venture capital firms such as Union Square Ventures, Andreessen Horowitz, Digital Currency Group, and Coatue.

The money is intended to be used for token grants, incubator programs, and other resources that can support the gaming sphere, infrastructure, decentralized finance, the content as well as the creators.

We also covered how Instagram would launch support for NFTs this week, where ones that run on top of the Flow blockchain would be included.

Should you buy Flow (FLOW)?

On May 11, 2022, Flow (FLOW) had a value of $4.27.

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For us to be able to see what this value point indicates for the future of the FLOW token, we will be going over its all-time high point of value, as well as its performance throughout the previous month.

The all-time high value of the Flow (FLOW) token was on April 5, 2021, when the token reached a value of $42.40. Here we can see that at its ATH, the token was $38.13 higher in value or by 893%.

When we go over the performance of the token throughout the previous month, Flow (FLOW) had its highest point of value on April 2 at $8.04.

Its lowest point of value was on April 30 at $4.60. Here we can see that the token decreased in value by $3.44 or by 42%.

With this $725 million ecosystem fund in effect, we can expect FLOW to climb to $6 by the end of May 2022. When all of the projects are realized, by the end of 2022, it could climb to $12, making it a solid token to buy.

The post What does the $725M ecosystem fund mean for the FLOW token? appeared first on Invezz.

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