The cryptocurrency world can be as confusing as it is exciting. New currencies, projects, protocols, and networks appear daily, with dramatic price swings to match.
Algorand and its associated cryptocurrency, ALGO, are one of the most recent projects to attract the interest of crypto enthusiasts.
Algorand (ALGO) Fundamental Analysis
Algorand (ALGO) is a blockchain platform as well as a digital currency. The Algorand platform, similar to a major payment processor like Mastercard or Visa, is designed to process a large number of transactions quickly.
Algorand is a direct competitor to Ethereum because it can host other cryptocurrencies and blockchain-based projects. The Algorand blockchain is secured by ALGO, the platform’s native currency, which is also used to pay transaction fees. Algorand is an open-source blockchain, meaning anybody can view the code and contribute to it. Pure Proof-of-Stake (PPoS) is the operational mechanism used by Algorand, which recruits network operators from the whole pool of ALGO coin holders.
Silvio Micali, a cryptographer and professor at the Massachusetts Institute of Technology, founded the Algorand platform and coin in 2017. ALGO’s total quantity is limited to 10 billion coins, with around 6 billion now in circulation.
How Does Algorand (ALGO) Work?
The usage of “Pure Proof-of-Stake” is one of Algorand’s distinguishing features. This is distinct from Proof-of-Work, in which the blockchain is maintained by computers solving complex math problems to produce new blocks and confirm transactions. This is how Bitcoin mining works in general.
According to environmentalists and proponents of alternative setups, while cryptographically extremely safe, this approach demands a lot of processing power and energy to perform effectively. Transactions and the creation of new blocks can happen faster and more efficiently using Pure Proof-of-Stake. ALGO holders are chosen randomly and then “verify and approve” each following block in the chain. Every time a new block is added, this group of users is randomly chosen.
According to the network’s developers, this technique allows the Algorand blockchain to be global, decentralized, and secure. The more ALGO a person has, the more likely they will be picked to check and validate new blocks and transactions. Algorand can authorize and process transactions in seconds, rather than minutes, because of this process.
Transaction flow in Algorand (Source: ResearchGate)
Algorand VS. Ethereum
The blockchain platforms Ethereum and Algorand might be seen as competitors. Both platforms employ smart contracts and provide infrastructure to allow the creation of new blockchain-based projects.
One of the main differences between Algorand and Ethereum is the consensus method used. Ethereum uses the Proof-of-Work (PoW) method to ‘mine’ new currency and execute transactions, which require a lot of computer power and energy. Ethereum is shifting to the most popular method, Proof-of-Stake (PoS), which requires blockchain network users to join in as validators.
Every 12-14 seconds, the Ethereum platform can process a new block of transactions. The Algorand network, on the other hand, allows transactions to be processed in less than four seconds.
Tokenomics
Only 10 billion units of the ALGO cryptocurrency will ever be generated, according to the Algorand Foundation, a non-profit organization that oversees and funds the protocol’s development.
Algorand has a block explorer that keeps track of the number of coins in circulation. The following is a distribution timeline that the foundation expects to be completed within five years of the protocol’s launch:
3.0 Billion tokens
- Over the first five years, estimated ALGOs are to be introduced into circulation.
1.75 Billion tokens
- Estimated participation rewards.
2.5 Billion tokens
- Relay node runners.
2.5 Billion tokens
- Algorand Inc. and the Algorand Foundation
0.25 Billion tokens
- Grant to end-users
Features of Algorand
Verifiable Random Functions (VRF)
A consensus mechanism developed by Algorand takes a secret key and a value and generates a pseudorandom output, offering proof that anybody can use it to validate results. Compared to other blockchains, this results in quicker transaction speeds and reduced fees.
Efficient Transactions
The ALGO crypto can be used for all network transactions, allowing purchases to be made fast, conveniently, and affordably.
Scalable Blockchains
Algorand’s blockchain architecture allows it to handle thousands of transactions per second while maintaining low latency and cost. This makes it simple for businesses and individuals to adopt.
Reliable Security
Cryptographic techniques enable the network to achieve high levels of security while maintaining data privacy. These technologies allow users to remain anonymous while preventing manipulation or modification of blockchain transactions.
Turing Complete
The Algorand blockchain is Turing Complete, which can run any program. This makes it simple to create smart contracts and decentralized apps with little effort.
Staking
While everyone with ALGO coins can vote on new block creation, individuals with a larger stake – or more ALGO tokens – often have a greater influence in transaction validation.
Algorand (ALGO) Price Analysis
ALGO went live in 2019. According to CoinMarketCap, around that time, the token was trading at $1.44. The same year, ALGO reached its all-time high of $3.28.
Even though the price was bullish for a certain amount of time, this was not for long. The price declined significantly throughout the whole year of 2019. Additionally, ALGO reached a price of $0.24. As of 2020, the same situation went on with the price of ALGO, not exceeding $0.34. 2021 started on a good note, and the coin not only reached its previous price of $1.44 but exceeded it, reaching a high of $2.37. The market fall in 2022 also impacted the price fall of ALGO. Algorand is currently trading at $0.30, which means it had an 91% fall compared to its all-time high.
Moreover, ALGO has a market cap of $2 billion, a circulating supply of 6 billion, and ranks #28 in crypto market rankings.
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Currency Prediction Algorand (ALGO) Price Prediction
Based on Algorand’s fundamentals and price trends, we have given our predictions for the next five years.
Currency Prediction Algorand (ALGO) Price Prediction 2022
Working with the El Salvadoran government to create the country’s blockchain infrastructure in 2022 can expose Algorand to a much larger audience. Until now, the price of ALGO has only experienced declines and is currently trading at $0.30. However, by the end of the year, we are optimistic that the coin might increase. We at Currency Prediction, predict that ALGO might end the year at $2.11. The lowest price this year might be $0.49 with an average of $2.05.
Currency Prediction Algorand (ALGO) Price Prediction 2023
Algorand plans to complete its bridge to Ethereum by 2023, allowing digital assets to move freely between the two. We expect that Algorand will start 2023 at $2.14 to an average of $2.55 by the end of the year. This year, ALGO’s highest and lowest prices might be $2.78 and $1.66, respectively.
Currency Prediction Algorand (ALGO) Price Prediction 2024
As of 2024, Algorand’s increasing DeFi ecosystem can put it in the spotlight. We predict that Algorand might reach a maximum price of $3.27 and a minimum of $2.15 by the end of the year. An average price is expected to be $2.80.
Currency Prediction Algorand (ALGO) Price Prediction 2025
Algorand might connect with numerous different blockchains by 2025, focusing on interoperability. We expect the price of ALGO to continue increasing, starting at $3.67 and peaking at $4.58. A new all-time high can hit this year with a price of around $5.44, a 65% gain over the coin’s previous all-time high.
Currency Prediction Algorand (ALGO) Price Prediction 2026
In 2026, the market might finally recognize Algorand’s quick and low-cost transactions. Building on previous gains, Algorand’s price can reach $8 early in the year, setting a new high of $8.13. According to our predictions, the minimum price might not go below $6.30, and the coin can end 2026 with an average price of $7.86.
Algorand (ALGO) Market Price Prediction
Price predictions for cryptocurrencies differ from each other. Below, we have mentioned some optimistic crypto prediction websites about the coin’s future.
Wallet Investor
Wallet Investor predicts that ALGO can increase in the future. This increase, however, will happen at a slower rate. By the end of 2023, ALGO might reach $0.69, which is a 58.9% difference from the current price. In 2026, the coin can be traded at $0.76. However, they expect a slight decrease in 2027, when the currency could reach $0.70.
PricePrediction.net
PricePrediction.net has a more optimistic approach to ALGO’s future price. For this year, 2022, they do not expect the coin to be more than $0.60. By 2025, Algorand might reach $1.90. A significant increase is expected to be seen during 2030, where according to the experts, ALGO can be traded at $12.12.
Digital Coin Price
The Digital Coin Price predicts the ALGO’s minimum price to be $0.56 and the maximum $0.68 by the end of 2022. By 2025, the coin might end the year with a price of $0.97. They suggest the coin might exceed $2 by reaching $2.20 in 2030, with a minimum price of $2.07 and an average of $2.14.
What Is So Special About Algorand?
Algorand is working hard to create additional initiatives that will broaden the scope of Algorand’s possible uses. The key driver of this innovation is increasing transaction speeds and making it easier to consider a transaction complete. While this is still new and not tested in the real world, it has the potential to compete with Visa and MasterCard.
Algorand has a lot going for it, which speaks well for its future pricing and chance of broader adoption. Algorand is an interoperable blockchain with a developing ecosystem, in addition to rapid transactions and minimal costs. It is listed on a number of great exchanges, allowing users to gain governance while also being an easy-to-use cryptocurrency. Algorand also offers a fast-expanding NFT market, which might attract many investors to invest in ALGO.
How To Buy Algorand (ALGO)?
Many exchanges offer ALGO as a coin. Purchasing ALGO is a straightforward process, and we will show you how to do it on Coinbase.
Step 1: Create an account
The first step you need to take is creating an account and following the sign-up process. After opening your account, you have to verify it. Coinbase asks you for a valid ID and some proof of address in order to be able to transact.
Step 2: Fund your account
The next step is funding your account. This is a simple process to follow, and Coinbase offers you three ways to fund your account. You can use a bank transfer, a credit card, or a wire transaction.
Step 3: Purchase ALGO
The third and final step after funding your account is purchasing ALGO. To buy ALGO, you need to put the number of coins you want to purchase and simply press BUY. After that, the coins will be transferred into your wallet.
Frequently Asked Questions (FAQs)
Is ALGO a Good Investment?
While the crypto market as a whole plays a significant role in most cryptocurrencies’ performance, ALGO has only had a 0.2 correlation with Bitcoin (a fragile one, compared to 0.91 for ETH-BTC). This suggests that Algorand might withstand a Bitcoin crash and could be a beneficial diversification tool in your portfolio.
What is ALGO Used For?
Algorand, like other cryptocurrencies, has attempted to create an ecosystem of apps for which the token can be used for. Of course, many investors are trading ALGO for profit, but it has other applications also. The creators of Algorand intend to host smart contracts that control the trade of digital property or digital representations of real-world items.
Does Algorand Have a Future?
Long-term investors who trust in Algorand’s technical potential can consider purchasing it. Things might go either way if you purchase with the expectation of short-term hype. However, ALGO might have a bright future because it has already seen multiple bull runs.
Takeaways
- Algorand is a cryptocurrency exchange and also has its native token, ALGO.
- The platform was launched in 2017, whereas the coin was in 2019.
- Algorand uses the Pure Proof-of-Stake method (PPoS).
- ALGO is a coin with the potential to increase in the future.
- Most crypto experts see the coin increasing slowly in the next five years.
- Algorand has the potential to compete with Visa and Mastercard because of its features.
- ALGO might be a good investment if you want a long-term investment.
