Is Algorand a Good Investment? 5 Reasons We Think It Is

Is Algorand a Good Investment? 5 Reasons We Think It Is

Algorand is the leading blockchain project aiming to be the greenest platform in the world. It is a smart contract chain using the Algorand Virtual Machine (AVM), which offers multiple possibilities for scaling and accelerating projects. According to its website, Algorand can process over 1,000 transactions per second (tps).

Algorand Price Performance

Algorand is one of the largest smart contract platforms in the world. According to CoinGecko, it has a total market capitalization of more than $4.7 billion. Like most digital coins, ALGO had a bad year as its price plummeted by over 60%. It is also down more than 77% from its all-time high and is trading near its lowest level since February 2021.

There are many reasons why the price of Algorand has plummeted over the past few months. First, there are significant risks that the Fed will adopt a more hawkish tone. In fact, the bank has already done so by raising rates twice.


The most recent rate hike was in May, up as much as 0.50%. The bank also decided to continue raising interest rates and implementing quantitative tightening policies. Historically, cryptocurrencies like Algorand have tended to underperform during periods of high interest rates.

Second, Algorand has been struggling as competition has grown and its ecosystem is a bit smaller than its peers. Some of Algorand’s biggest competitors are Ethereum, Cronos, Solana, and Cardano. While the total value locked (TVL) of these networks is in the billions, Algorand’s locked value is relatively small.

With that in mind, let’s look at some of the main reasons why Algorand is a good investment.

Algorand’s World Cup Exposure

The World Cup is one of the biggest sporting events in the world, with billions of spectators worldwide. Recent figures show that the final between France and Croatia had more than 1.1 billion viewers. Considering the world’s population is over 8 billion, this is a large number. Also, more people watch the World Cup than Formula 1 and the Super Bowl.

In May 2022, Algorand announced that it had signed an agreement with FIFA to become the main sponsor of the World Cup. As such, its logo will be seen by millions of people from all over the world. Meanwhile, FIFA will use Algorand’s technology to create its blockchain initiatives, such as non-fungible tokens (NFTs).

Therefore, we believe that the Algorand price will steadily recover during and after the World Cup. This will happen as more and more people decide to buy coins during the game.

However, while this is a good catalyst, it is worth noting that the cryptocurrencies that appear in most events are only a temporary boost. For example, Cronos, formerly known as the Coin, saw only mode gains when the company sponsored the Super Bowl.

its growing ecosystem

Algorand is a good investment because its ecosystem is well-rounded. Like Solana and Avalanche, Algorand has been adopted by all types of developers. These creators are building applications across all industries, including automated market makers (AMMs), analytics, decentralized autonomous organizations (DAOs), DEXs, governance, oracles, NFTs, and more.

The catalog of all applications created in Algorand has grown rapidly over the past few months. Some of the most popular blockchain platforms created with Algorand include AlgoFund, AlgoLaunch, Choice Coin, Algofi, Flex NBA, Drag Racing League, and Folks Finance, among others. While most of these projects are in their infancy, they have the potential to continue to grow in the years to come.

This is a proof-of-stake platform

Another reason Algorand price will continue to perform well is that it is built using a pure proof-of-stake (PPoS) consensus. This is a protocol to mint new coins by using validators. It differs from proof-of-work methods, which allow coins to be created by solving complex mathematical solutions.

Proof of stake is said to be a better approach, which explains why Ethereum migrated from its PoW platform to PoS.

Algorand has several benefits as a PoS platform. First, it allows investors to earn returns by simply holding the token. This process, called staking, allows people to earn up to 12% APY. Second, it makes Algoran significantly faster. It can process more than 1,000 transactions per second, while Ethereum can only handle less than 20.

Additionally, Algorand’s PoS system helps ensure it is climate friendly. In fact, the platform uses climate trading to offset its carbon footprint. Climate trade is widely used by companies seeking to reduce their footprint.

Algorand is widely available

Also, Algorand is widely available from most brokers and exchanges. It is available on leading centralized exchanges like Coinbase, and Binance. These are some of the most popular exchanges in the world. Meanwhile, Algorand can be bought and traded on leading decentralized exchanges such as Uniswap and PancakeSwap.

Learn more about how to trade cryptocurrencies.

Algorand has a strong community

Finally, Algorand has one of the largest communities in the blockchain industry. Its main Twitter account has more than 250,000 followers, which is higher than most cryptocurrencies. Furthermore, a closer look at its network shows that it has millions of wallets. Meanwhile, Algorand launched a $250 million grant program to incentivize developers.

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