Algorand is a Layer-1, permissionless and payments-focused network with near-instant transaction times. One of the most prominent mathematicians and computer scientists of the last century, Silvio Micali, founded the Algorand protocol in 2019. Micali has engineered a permissionless, pure proof-of-stake (PoS) protocol to help bring forth his vision of a borderless economy.
The Società Italiana degli Autori ed Editori (SIAE), Italy’s largest copyright collecting agency, has chosen Algorand to facilitate their author’s copyrights transition to digital assets. The SIAE will mint 4 million non-fungible tokens (NFTs) to represent the rights of authors digitally. The SIAE launching digital copyrights on a decentralized blockchain will protect the author’s rights and the industry’s future.
What is Algorand?
Algorand (ALGO) is an open-source, decentralized network to overcome legacy blockchains’ speed, security and decentralization issues. The Algorand protocol can process over 1,000 transactions per second (TPS) and achieve transaction finality in less than 5 seconds. The capacity to handle a high volume of transactions with community incentives allows Algorand to manage widespread global usage demands and requirements.
The Algorand protocol leverages a bespoke variation of the PoS consensus mechanism to increase transaction speeds and achieve finality. Algorand’s capacity to finalize a high rate of transactions at almost zero latency has captured the interest of major corporations and governments. The rise of broader utilization of the Algorand network may be the catalyst behind its native token ALGO outperforming the market as of late.
Algorand uses its pure PoS consensus mechanism and distributes validator rewards to all holders. Essentially, pure PoS ensures that no funds can be held up on the network and money is always where it’s supposed to be. The pure PoS mechanism makes unethical activities by a minority impossible and cheating by a majority stupid.
The Algorand protocol handles vast sums of money and is designed to ensure that said money is secure and in honest hands.
Algorand can host decentralized applications (dApps) and provide scalability as a public smart contract network. Many dApp developers and decentralized finance (DeFi) traders are looking to Algorand as an alternative to Ethereum’s exorbitant gas fees.
Algorand Market Position
The market cap of Algorand as of October 2022 is around $2.2 billion, ranking around #30 in the marketplace.
To calculate the market cap, you multiply the token’s circulating supply by its price. Market cap, not price, is critical when determining a project’s token supply’s actual market value. The market cap also shows you how risky an investment is and its capacity for growth. Investors tend to see a higher market cap project as less risky because more liquidity allows them to remove their funds quickly. Therefore, when deciding whether to purchase a digital asset, the token’s price should be among the least important metrics.
Algorand and the firm behind the stablecoin USDC (USD Coin), Circle, recently shared that they have partnered to bring the stablecoin to the Algorand protocol. The productivity and scalability potential of Algorand makes it an ideal blockchain for USDC and other stablecoins. Algorand is set to transform the way payments and banking services are handled by enabling stablecoins to be used for micropayments. On- and off-ramps between the network and the legacy finance world is another significant use case for stablecoins.
Algorand’s approximate $2.20 billion market cap in October of 2022 shows its enormous growth potential compared to its top competitors Ethereum at $150 billion or Cardano’s $12 billion market cap. The Algorand ecosystem is forecasted to grow exponentially via both DeFi and NFT projects. This should also lead to a price increase of the ALGO token.
Ryan Matta’s Bull Case for Algorand
Ryan Matta is an experienced crypto trader and technical analyst. He makes the bullish case for Algorand by analyzing various metrics. He points out that before Bitcoin’s most recent correction, Algorand’s popularity ranking had reached No. 1 according to Lunar Crush. The Lunar Crush platform provides real-time insights on various cryptos.
Also, one of the largest automated market makers (AMM), Balancer, will soon be available on Algorand. He believes that these factors, coupled with Algorand’s phenomenal team and excellent marketing, could generate enough interest to push the token price to about $6 by late 2023.
Plane-Law’s Bear Case for Algorand
Plane-Law is a crypto investor who provides fundamental analysis on several crypto projects. He thinks that the biggest concern for the Algorand network is that the young network has never been stress tested with a high degree of traffic and could become congested. Another bearish case is that ALGO could get left behind by its competition like Cardano (ADA) or Polkadot (DOT) because they both already have a more extensive user base.
Finally, the inflation rate of the ALGO token is projected to be about 30%. Suppose there are going to be 30% more ALGO tokens on the market. If the token doesn’t see more adoption, the price will decrease, proving problematic for investors. He didn’t give a particular price prediction but believes the ALGO price will see a sharp decline if any of these bearish scenarios play out.
Where to Buy Algorand
You can buy the ALGO token at several exchanges, including eToro, Crypto.com, Coinbase and SoFi. Coinbase is one of the easiest to navigate platforms and is an excellent choice for beginners, and Crypto.com allows you to spend your crypto with a prepaid visa card. You can also put your cash into an interest-earning account and in some countries, even get a crypto loan.
SoFi is another great option, as they're currently giving away free bitcoin for investors who open an online account with the platform. Plus, SoFi lets investors buy and sell other assets, such as IPOs and ETFs. If you're looking for a 1 stop shop for all your investments, SoFi is the way to go.
- securely through eToro's websiteBest For:Demo Accounts
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections and not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
How Long Will it Take for Algorand to Reach $10?
Algorand has recently been on an uptrend as the number of projects onboarding to the network continues to rise. The number of governments choosing to launch projects on Algorand could act as a catalyst for further adoption and upward price action for the ALGO token. The network is also planning to upgrade to a more decentralized model in October. The upgrade will include a DeFi ecosystem with the advantage of being a non-forkable, low-fee and a layer 1 ecosystem. A robust suite of DeFi apps should cause an increase in the price of ALGO, but for Algorand to reach $10, the overall crypto markets must remain bullish. This is not financial advice and only speculation because price predictions are merely conjecture.
Where to Store Algorand Safely
Some exchanges allow you to stake your ALGO tokens directly on their trading platform. However, leaving your crypto assets on an exchange is not the best practice. The best thing you can do is store your crypto offline in a hardware wallet or online in a software wallet. Some wallets allow you to stake ALGO securely, directly inside your wallet.
Best hardware wallet: Ledger
The Ledger Wallet is probably the most famous hardware wallet, and according to many, the most secure. Ledger also offers you the option of staking your ALGO’s directly in your wallet. In addition, the Ledger Nano S pairs with the web-based MyALGO wallet, and the Nano X is compatible with the Algorand Core mobile wallet.
Best software wallet: Coinbase
The Coinbase Wallet has an easy-to-navigate interface and allows you to store and trade your crypto. The wallet also works as a mobile app. It has multilevel authentication making it one of the most secure software wallets.
Algorand announced that the Colombian government had chosen Vitalpass, a COVID-19 vaccination passport, as its official method for documenting who has received the vaccine. This could increase demand for the ALGO token.
Current Crypto Prices
As of October 2022, the crypto market cap is a fraction of what it once was. The Bitcoin price is recovering after suffering a harsh correction after the depegging of Terra, along with the downfall of the rest of the market.
For the most up-to-date crypto prices, check out the table below.
So, Is Algorand a Good Investment?
Algorand is on a mission to drive the future of finance by blending the traditional and decentralized models into a secure and unified system. As Algorand’s innovative blockchain network continues to attract more projects to build, demand for the token will increase.
The Marshall Islands have announced that they’re making their national currency on the Algorand blockchain. If this proves to be a success, other countries might follow — and this could cause a price increase in the ALGO token.
Frequently Asked Questions
Is Algorand a safe investment?
Technically, no investment is safe, but some cryptocurrencies, like Algorand, have more room for growth.
Do you need a crypto wallet?
All crypto investors should use a secure wallet to protect their investments from hackers.
- Exclusive Crypto Airdrops
- Altcoin of the Week
- Insider Interviews
- News & Show Highlights
- Completely FREE