Both Algorand and the Algorand Foundation are actively developing the protocol to ensure long-term sustainability.
Algorand has been making significant waves in the crypto market, as it promises a pure proof-of-stake blockchain protocol that’s seamlessly able to achieve decentralization, security, and scalability. In other words, Algorand has cracked the blockchain trilemma, an issue that cryptographers and software engineers have long been battling. Algorand’s aim is simple – cater to the booming digital economy by providing suitable means of reducing friction, while powering future-oriented projects. Algorand’s protocol comes with several key functions, including comprehensive smart contract capabilities, layer-1 blockchain assets with customizable options, and layer-1 atomic transfers boasting immediate multiparty transaction settlement. Together with its powerful infrastructure, it only makes sense that numerous projects in the blockchain industry are switching to Algorand. In fact, the Algorand team has recently spoken about its plans to further increase the daily transaction throughput. So far, the chain can easily process about 500K transactions per second, and it currently does so thanks to its 500 partner projects. In 2021, Algorand will operate a series of technical modifications to boost the throughput from 1,000 TPS to a whopping 46,000 TPS. Furthermore, Algorand has also announced plans to Algorand, thereby enhancing its community engagement. With these aspects in mind, price analysis for Algorand’s native token ALGO is long overdue. This article will focus on highlighting recent price trends while attempting to make a few fact-based future predictions, without offering actual investment advice. Brief Overview of Current Crypto Price TrendsBitcoin’s 2020 price rally has amazed everyone. The bull run is still on-going after the world’s largest crypto by volume has managed to break the $20K resistance, reaching values as large as $23,000. As usual, most other cryptocurrencies are following suit, as investors worldwide rush to pour capital into their favorite digital currencies. Indeed, the growth trends experienced by many other coins are far from bitcoin’s massive gains, but they’re certainly worth considering. Such an example is ALGO, the token associated with the Aglorand blockchain protocol. It holds inherent value thanks to its chain’s innovation in the blockchain sphere. While it was designed as a utility token meant to power on-chain transactions and smart contracts, there’s no reason why ALGO wouldn’t be suitable for trading, storing value, or making payments. The next section of the article will focus on carrying out a price analysis for the ALGO token.Algorand Price AnalysisBefore discussing ALGO’s recent price trends, we ought to start off with an overview of the token. At press time, ALGO holds a market cap worth over $400 million, alongside a daily volume of approximately $135 million. Thanks to this data, it becomes apparent that ALGO is actively being purchased and traded by thousands of project believers. In terms of its emission type, ALGO is a fixed supply token backed by pre-minted rewards. The maximum supply is capped at 10 billion tokens, with almost 2 billion ALGOs in circulation at this time. Historical Price OverviewALGO’s spot price has seen its fair share of volatility since it was first distributed in June 2019. ALGO kicked off with a trading price of $3.07, but it quickly fell to an average price of $0.25, which was held for quite a while. As ALGO also follows the inherent dynamics of crypto price trends, bullish runs lead to a spot price increase, whereas bearish sentiment causes price falls. However, when looking at the bigger picture, we cannot help but notice how ALGO’s price has remained relatively stable throughout the year, without facing wild ups and downs. It did, however, reach $0.74 as its trading price for a bit, before settling down to its initial average volume.