2020 has seen a lot of development from Algorand. The platform is focusing on improving its protocol to ensure better services and long-term growth and sustainability. The cryptocurrency and smart contract platform expands on the use cases of cryptocurrencies.
Algorand has seen stellar growth over the past year and sees 500,000 daily transactions. Over 500 companies are developing their applications and protocols on Algorand. Companies are flocking to the platform thanks to the advantages that the platform’s layer-1 smart contracts provide and other functionalities on the platform. The platform also offers smart contracts and atomic transfers.
Algorand uses a unique consensus mechanism called pure proof-of-stake (PPoS), which helps transactions achieve finality in seconds. Pure proof-of-stake allows Algorand to achieve scalability, security, and decentralization. The Algorand platform aims to see the same levels of growth and innovation in 2021. The developers hope to improve the performances and the functionalities of the platform while also focusing on keeping decentralization intact.
The platform plans to improve the following metric in 2021.
- Block proposal time – Algorand aims to keep its block proposal time at current levels, which is 0.5 seconds. However, the block size will grow from 5000 to 25000 transactions.
- Block finalization time – The platform aims to reduce block finalization time from the current 4.5 seconds to 2.5 seconds.
- Transactions per second – ALGO plans to grow its transactions per second from the current 1000 TPS to a whopping 46000 TPS.
With these improvements, Algorand hopes to achieve a permissionless decentralized network, overcoming the drawbacks of first-generation blockchains.
If you want to buy Algorand, you can do so through Binance.
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A look at the overall price trends of cryptocurrencies
Cryptocurrencies have been on a bull run, which at the time of writing is still ongoing. It is an unprecedented run that has amazed everyone, from experts to the common man. The run is led by the largest and most popular cryptocurrency globally, Bitcoin, and has seen it break the $20000 mark and has reached highs of $23000.
Bitcoin is leading the charge, but other cryptocurrencies are rallying as well. Investors are pumping money into cryptocurrencies. ALGO, Algorand’s native cryptocurrency, has also seen a considerable amount of growth. ALGO, by association with Algorand, has inherent value, its primary function being to power actions on the Algorand blockchain and smart contracts. ALGO is a viable option as a store of value, for trading and for making payments.
ALGO price overview
Algorand’s market capitalization is over $400 million, and it sees a daily volume of around $135 million. The token is traded and bought by investors, cryptocurrency enthusiasts, and traders. ALGO tokens have been capped at 10 billion tokens since it is a fixed supply token. Presently there are 2 billion ALGOs in circulation.
Historical price overview
The ALGO token was distributed in June 2019. The tokens price has seen its share of volatility with frequent highs and lows. The ALGO token started trading with a price of $3.07, but the token was unable to maintain this price for long. It saw a fall in price until it stabilized at a price of $0.25. The price of ALGO also depends on other cryptocurrencies and their volatility. It sees a rally or a fall in price depending on the performance of other cryptocurrencies.
However, when looking at long-term trends, we see that ALGO has had a relatively stable price without any drastic price variations.
Looking at Algorand’s market cap, we see more volatility than what we see when it comes to its price. Algorand’s peak market capitalization came in August 2020 when it hit $577 million. The peak was attributed to high levels of trading due to Algorand’s ongoing projects.
Algorand Price Analysis – Massive bullish run ahead
ALGO jumped up from $0.233 to $0.36 between November 20 and November 24. However, this is where the price encountered heavy resistance and entered an inverted head-and-shoulders pattern. The head reached a low of $0.288 December 11. As of now, ALGO is on course to dip till the 50-day SMA and bounce up to the $0.36 resistance barrier.
Image: ALGO/USD daily chart
The weekly chart shows us that if the price manages to break above the $0.36 level, the next viable barrier, as per price history, is at $0.465. The moving average convergence/divergence (MACD) in the weekly chart also shows that the market momentum is on the verge of turning from bearish to bullish.
Image: ALGO/USD weekly chart
Short-Term trends for Algorand
At the time of writing, Algorand is trading at $0.356. For the short-term, ALGO is predicted to continue on its bull-run. This can be attributed to the current trading volume due to the bull run and larger capital in-flows. It is difficult to accurately predict the price of ALGO or any cryptocurrency for that matter because the price depends on current market trends, which are continually changing. Experts do believe that ALGO’s value will remain over $0.30 for the foreseeable future.
Long-Term price trends for Algorand
The founders and developers at Algorand have stated that their goal is to ensure the protocol’s long-term stability and sustainability. ALGO’s price is directly linked to the Algorand blockchain. The team behind ALGO is continuously improving Algorand. The blockchain already has a thriving DeFi ecosystem that puts it ahead of its peers. It solves the blockchain trilemma and offers scalability, security, and decentralization. Its unique pure proof-of-stake consensus mechanism enables it to provide transactional finality in seconds.
Several next-generation projects have chosen Algorand as their platform. It can safely be said that they will continue to do so because Algorand offers a strong alternative in the DeFi space and the platform’s stated aim is to power the DeFi space through innovation.
It has partnered with organizations like ISDA, The Realio platform, and Coinbase. The Algorand platform is pushing the next generation of financial products, micropayment facilities, wallet support, and instant transactional confirmation. It is no surprise that several high profile projects are picking Algorand to create their protocols.
If we take all of the above factors into account, it is safe to say that ALGO’s value will see an increase. Algorand is at the front of pioneering blockchain technology by improving on the drawbacks of other blockchains.
Disclaimer:
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