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Algorand Market Cap And TVL Skyrocket As ALGO Faces Critical Support Test

Blockchain platform Algorand achieved notable gains in key metrics during the year’s first quarter (Q1), aligning with the overall upward trend observed in the crypto market ecosystem. 

However, despite this growth, its native token ALGO experienced a 22% price decrease since the beginning of Q2, putting a critical support line to the test and raising questions about the cryptocurrency’s prospects.

Algorand Revenue Skyrockets

According to a report by Messari, Algorand’s revenue witnessed a substantial 1,747% quarter-on-quarter (QoQ) surge, primarily driven by a 288% increase in transactions and a 50% rise in the average price throughout the quarter. The Orange memecoin project also contributed to this growth. 

In Q1 2024, ALGO’s commitment to governance on the Algorand platform declined by 60% year-on-year (YoY) and 3% Quarter-on-Quarter, reaching its lowest level in a year at 1.7 billion ALGO staked. 

Algorand

Per the report, this downturn can be attributed, at least in part, to the diminishing governance rewards allocated per governance period. For example, governance participants received 68.2 million ALGO in Q1 2023, but this figure dropped significantly to only 21.9 million ALGO in Q1 2024.

The market cap for stablecoins on the Algorand platform declined 6% QoQ to $73 million. Circle’s USDC market cap on Algorand decreased by approximately 9% QoQ to $50 million. 

In contrast, Tether’s USDT stablecoin market cap remained stable during the same period with no QoQ change, although it recovered 2% of the stablecoin market share. 

Consequently, USDC’s market share decreased by 3% to 68% QoQ, while USDT’s market share increased by 2% to encompass 30% of Algorand’s total stablecoin market cap.

Algorand’s DeFi TVL And Market Cap Lead The Pack

Algorand’s total decentralized finance (DeFi) total value locked (TVL) witnessed growth for the second consecutive quarter, rising by 9% QoQ to $130 million. 

Although TVL experienced a decline in Q3’23 due to Algofi’s deprecation, the entire DeFi market on Algorand rebounded and surpassed Q2’23 levels, nearly reaching the levels seen in Q1’23. 

Folks Finance retained its position as the top DeFi protocol by TVL on Algorand. Even though its TVL fell by 5% QoQ in Q1, it maintained just over 50% market share. 

Algorand

Pact and Tinyman also demonstrated noteworthy gains, capturing approximately 15% and 18% of the DeFi TVL market share in Q1. AlgoRai Finance experienced the most substantial growth, with a remarkable 53% increase in its TVL QoQ.

Lastly, during Q1, Algorand’s market cap expanded by 18% QoQ, reaching $2.1 billion. The global crypto market cap also witnessed significant growth during the same period, nearing all-time highs of around $3 trillion, denoting a 50% increase from the previous quarter. 

Although Algorand capitalized on this upward trend with an 18% increase in its market cap, it experienced a more substantial surge of 123% in the preceding quarter.

Testing Key Support Levels

ALGO’s performance in the early stages of the second quarter has been predominantly bearish. Currently, the token is trading at $0.1935, with a possibility of further testing the support line at $0.1904. A breach of this level could lead to a continuation of the decline towards the next support at $0.1789.

On the upside, the $0.1988 zone presents a significant resistance level for ALGO. Notably, the token has attempted to surpass this threshold three times in the past 10 days without success. 

Algorand

Featured image from Shutterstock, chart from TradingView.com 

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Algorand CEO’s X Account Hacked, Is Justin Sun Involved?

On Thursday night, Algorand CEO Staci Warden’s X Account (formerly known as Twitter) was compromised. Since then, the crypto community and the hacker have been having a back-and-forth conversation.

Justin Sun Will Boost Algorand To “New Heights”

Algorand Foundation’s X account was the first to inform about the hack and advised users to be careful when interacting with the compromised account or any link promoted by it. The hacker then took Staci Warden’s compromised account to start a series of controversial posts and replies.

The hacker called Algorand’s community “poor” in the initial post, later suggesting it would be better for the community if they “sold ALGO and instead bought Ether.” Both posts have amassed a combined total of 150,000 views and, as it’s worth noting, contain racial slurs.

Additionally, the hacker offered a fake airdrop giveaway, claiming they would send “1 $ETH for every % $ALGO drops this week.” While following some users’ petitions, the hacker shared music and changed the account’s bio, claiming that Warden had exited Algorand Foundation and had become a “semi-professional pole dancer.”

Most notably, a fake story was shared in the account narrating a call with Tron founder Justin Sun, referred to as “his excellency” by the hacker. In the fake story, Sun promised to take Algorand to “new heights” under the condition that Algorand’s CEO gave total control over the network and allowed Sun to mint any token to back TRUE USD (TUSD).

A sarcastic comment insinuating that Sun’s projects will be the reason behind “the next major financial collapse in crypto” closed the story.

Algorand CEO Criticized By The Community

The original announcement about the hack and the different posts shared on the compromised account ignited comments from the crypto community. Most users took the incident with humor, while others have taken the opportunity to express their discontent with the CEO.

One user claimed that Algorand CEO “qualifies to be an intern” at the Securities and Exchange Commission (SEC), clearly referencing the recent hack to the SEC’s X account suffered and resulted in a false report about the approval of spot Bitcoin ETFs.

Similarly, known crypto sleuth ZachXBT shared his thoughts about the hack, “Unpopular opinion: Staci hacker would make a better CEO for Algorand Foundation.” To which the hacker jokingly replied, “Hey bro, I just send you $10,000. Keep up the good work for this industry, buy your mom some flowers, and take your father out for a nice dinner,” referencing a previous X post informing the crypto detective of a donation made about a week ago.

No further posts have been shared in the last hours, but the account appears to still be under the hacker’s control, as none of the posts have been taken down, and there’s no official statement about the account’s recovery.

As reported by NewsBTC, ALGO outperformed the general crypto market growth in Q4 2023, experiencing an increase in market capitalization, transaction volume, revenue, and user adoption. ALGO’s prince trades at $0.1652, a 3.18% surge in the last 24 hours.

ALGO, Algorand, ALGOUSDT

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ALGO Blows Up To 42-Week High, Delighting Algorand Fans

Known for being a blockchain technology pioneer, Algorand (ALGO) has seen ups and downs in the cryptocurrency market. Over the past week, there has been a notable 20% surge in the value of the Algorand token, which also translates to a 42-week peak.

According to data from Coingecko, ALGO was trading at $0.232 at the time of writing, with a significant 24-hour trading volume of $370 million.

Algorand’s Rise: Blockchain Advancements And Market Surge

The Algorand network, also referred to as “blockchain3.0,” prioritizes security and decentralization while addressing significant scaling problems that have beset earlier blockchain systems like Bitcoin.

Algorand’s cutting-edge blockchain technology, which is well-known for its quick transactions and function in smart contracts, is what is driving ALGO’s growth. Its price increase over the weekend represented a 90% rise in the last month.

Algorand’s digital network and protocol give it a significant technological advantage that makes it a vital role in improving the financial system’s efficiency.

Algorand is a significant player in the market, presently ranked 43rd, with a current market value of more over $1.85 billion. There are already 8 billion tokens in circulation on the network, which is a sizeable fraction of the 10 billion token maximum supply.

This position takes into account the platform’s usage of a significant percentage of its token allocation as well as its presence in the cutthroat cryptocurrency market.

“We’re just getting started,” cryptocurrency enthusiast “Aj” said, expressing excitement about ALGO’s recent resurgence. According to Aj’s technical analysis, the $0.28 mark is crucial for turning resistance into support and launching the token on a long-term upswing.

A number of important underlying developments support a long-term Algorand comeback.

By collaborating with the UNDP to establish the Algorand Blockchain Academy, the Algorand Foundation has demonstrated its dedication to blockchain education and transparency, which could enhance ALGO’s position in the market.

Algorand’s Tech Triumphs Amid Market Variability

Updates that are significant and solidify Algorand’s position as a top blockchain are supporting its comeback. Algorand released AlgoKit 1.8.2 last week, a significant update that supports Python template support in dev tools to speed up application development.

Another addition to the update is a debug adapter that enables in-depth analysis of transaction execution.

In terms of smart contract throughput, Algorand has outpaced other leading Layer 1 (L1) blockchains, such as Solana, BNB Smart Chain, Avalanche, Polygon, Celo, and Ethereum, as seen in the figure below.

Algorand has remarkable technology, but its performance in the market is inconsistent. The blockchain platform exhibits creativity and state-of-the-art solutions, but the market’s reaction has been a mixed bag of positive and negative developments.

The potential of Algorand draws investors who have to traverse a volatile cryptocurrency market, which complicates their decision-making process. Investors must navigate this complex relationship between market dynamics and technological superiority with caution.

Featured image from Shutterstock

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Algorand (ALGO) NFT Rewards Skyrocket: Transactions Surge 320% In Q3

Algorand (ALGO), a smart contract platform employing the Proof-of-Stake (PoS) consensus mechanism, has showcased notable progress in the third quarter (Q3) of the year, as reported by Messari. 

Despite facing some challenges, the platform has seen remarkable growth in its ecosystem and significant developments in various aspects of its platform.

Algorand Witnesses Surge In Transaction Volume In Q3

Per the report, the non-fungible token (NFT) Rewards program implemented by Algorand garnered notable success, leading to a significant increase of 321% in NFT-related transactions compared to the previous quarter. 

This program, initiated through a governance vote in Q2, allocated 500,000 ALGO in rewards to NFT marketplace users to stimulate activity.

Furthermore, during Q3, Algorand experienced a surge in user adoption, adding 1.1 million new addresses and witnessing a 2% increase in total daily average transactions compared to the previous quarter. 

However, Algorand’s total stablecoin market cap faced a decline of 58% in Q3, largely attributed to the decreasing market caps of stablecoins on the platform. Despite this, USDC (USD Coin) surpassed USDT (Tether), accounting for 76% of the stablecoin market cap.

Algorand

In the decentralized finance (DeFi) space, Algofi, Algorand’s largest DeFi protocol by Total Value Locked (TVL), began winding down operations in July. 

As a result, Folks Finance emerged as the dominant DeFi protocol on Algorand, capturing 55% of the DeFi TVL in Q3. Algorand’s quarterly revenue, including fees collected by the protocol, grew by 25% in ALGO terms; however, it declined by 23% in USD terms due to the daily average ALGO price.

Algorand’s governance participation experienced a decline of 8% in Q3, accounting for 30% of the circulating supply. The platform’s network upgrade in Q3 allowed for increased throughput, lower blocktime, and support for quantum-secure interoperability via State Proofs.

Looking ahead, Algorand has announced plans to launch AlgoKit 2.0, a developer-focused tooling that aims to simplify the developer experience. It also intends to shift its network topology to a peer-to-peer design and transition to an incentivized consensus economic model in 2024.

ALGO Struggles To Break Key Resistance

Regarding price action, ALGO, currently ranked 53rd among the largest cryptocurrencies in the market, has faced challenges amid the recent bullish surge in most cryptocurrencies. 

The token is currently trading at $0.1217, experiencing a decline of over 7% in the past 24 hours. Despite this retracement, ALGO has shown impressive gains across other time frames.

Over 7 and 14 days, ALGO has recorded significant gains of 10% and 21%, respectively. The best performance was seen in the 30 days, with a surge of 28%. 

Algorand

However, ALGO has faced a year-to-date decline of over 62%, in contrast to most of the crypto market, where major cryptocurrencies have nearly doubled in value since the end of the crypto winter.

Moreover, ALGO has struggled to surpass its 200-day moving average (MA), a significant resistance level. This has resulted in the recent pullback, preventing the token from reaching levels not seen since July, where it reached $0.1364.

The future trajectory of ALGO remains uncertain. It will depend on continued developments and growth in its ecosystem to propel the token towards its yearly high of $0.2898, reached in February. Alternatively, ALGO may consolidate below its moving averages.

Featured image from Shutterstock, chart from TradingView.com 

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Algorand (ALGO) Loses Its Gains As Majority Of Coins Plummet

Despite bagging substantial gains earlier in the trading day, Algorand (ALGO) is down over 27% as of writing. The token’s price drop follows a bearish market sentiment that sees major coins plummet on the day. 

The past seven days had seen the token climb steadily. It even tried reaching its 6-month high of $0.488 yesterday. However, its rally was cut short and only registered an intraday high of $0.409.

Algorand’s price dump comes as news of FTX acquisition by Binance surfaces. This single news has dragged the entire market into the red zone, with alpha crypto Bitcoin falling below $18k again.

ALGO Consolidating And Accumulating Between $0.28 And $0.42

ALGO’s price has been on a significant slump throughout 2022 up to May. Since reaching an all-time high of $2.41 in September 2021, the token has only known downward trends. However, the token has formed a pattern these past months, starting from June. 

Specifically, ALGO has been fluctuating around  $0.28 and $0.42, with the midrange being $0.35. This pointed to the possibility that the coin was through a period of accumulation. The A/D indicator also showed an upward trend, indicating sustained buyer interest. Since June, the indicator has been making higher lows. 

Conversely, the CMF has followed the bear-bull battles by swinging back and forth between negative and positive values. At press time, the CMF was below zero, indicating that no substantial funds were entering the market. Instead, more funds were leaving.

ALGOUSD

ALGO’s price is currently hovering around $$0.2961. | Source: ALGOUSD price chart from TradingView.com

Can ALGO Break Past This Range?

It’s highly unlikely. The overall market sentiment fueled by FTX/Binance news has already pulled ALGO from its upward trend. The RSI is already in the overbought zone and has started a downward movement. As of writing, the token is trading at around $0.2961, a 27% loss on the day.

A bearish order block formed above the range highs in May, indicating the market’s extreme volatility during that month. The range was from $0.41 to $0.49, implying strong resistance for ALGO up to the round $0.5 level.

What Pulled ALGO and Other Tokens’ Prices Under?

Earlier in the day yesterday, tokens across the crypto market pumped substantially after FTX’s acquisition by Binance was revealed. The news came after several days of rumors about FTX and Alameda’s liquidity issue. However, the news couldn’t sustain much bullish pressure, causing the market to sink. All profits gained on the day were wiped out by more than 15% across the board.

As of this writing, FTT had lost over 76% of its value, falling below the $4 threshold. The price of Solana came under pressure, retracing 39% to around $16. ALGO also suffered a 27% loss. 

BNB was poised to be the day’s big winner after the Binance FTX announcement. However, the recent market sell-off has hit the exchange token hard. It is now trading at $288, down 20.54% from its early morning high.

Featured image from Pixabay and chart from TradingView.com

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Algorand (ALGO) Continues To Shine With 21% Gains In 7 Days

Algorand, the pure proof-of-stake protocol continues to keep gains from seven days prior. The blockchain’s native token ALGO has retained over 21% of profits, joining top performers like Doge and BNB. In the past several weeks, the price of Algorand has been making a positive recovery. This coincides with a general resurgence in the value of cryptocurrencies.

Algorand’s price increased by 2.65% in the last day, reaching $0.411. This is consistent with its recent upward trend of over 21%, which began a week ago. At that time, it was trading at $0.411 and has carried it all the way up to its present price. Despite its impressive gains, Algorand is still far from its all-time high of $3.28.

World Cup Causes ALGO To Surge

The price of Algorand has a major driver that might send it soaring in November. Some time ago, Algorand signed a massive contract with FIFA. The agreement made Algorand the official blockchain partner for the international soccer governing body. This led to the development of FIFA’s NFT marketplace, FIFA+Collect. The marketplace allows fans to buy, sell, and trade NFT collections commemorating iconic moments in the history of soccer.

In addition, Algorand will be a major sponsor during this month’s World Cup. This will result in the introduction of Algorand to billions of individuals worldwide. Given that the World Cup is a massively popular event throughout the world, this is crucial for the blockchain’s adoption. Therefore, it is likely that the price of ALGO will increase before and during the World Cup.

This event comes a month after Algorand revealed a huge improvement that significantly increased its speed. With the latest Algorand 3.9 update, the block size may now be as large as 5 MiB. Also, typical round times have dropped to under 4 seconds. This means Algorand can process 6,000 tps or more than 26,000 transactions per block. Recent months have also seen a rise in Algorand’s DeFi TVL.

ALGOUSD

ALGO’s price is currently hovering around $0.4031. | Source: ALGOUSD price chart from TradingView.com

Where Can ALGO Go From Here

On the four-hour time frame, there’s been a clear positive trend in the ALGO price over the past few days. On October 21st, it had a low of $0.30. However, it has risen from there and established a local high of $0.396. This shows that it is possible to drive prices up further. The currency’s price is now higher than the 25-day and 50-day simple moving averages. It has also broken above the key pivot point. In addition, the Relative Strength Index (RSI) has fallen below the overbought threshold.

Also, a reverse head-and-shoulders pattern may be seen developing in Algorand. The daily data for ALGO shows the price holding steady between $0.4 and $0.27. ALGO has broken past the $0.357 level, a strong resistance. $0.40 is the next major level of resistance for Algorand, so keep an eye on it. If prices fall below $0.3330, the positive outlook will be meaningless.

Featured image from Pixabay and chart from TradingView.com

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Algorand (ALGO) Undermines Crypto Bloodbath, Adds Over 27% In A Week

This week has been eventful in the crypto market. Many cryptocurrencies have recorded massive losses since Monday, September 19.

The Merge on September 15 kickstarted another downtrend for crypto prices. Afterward, CPI data made the feds hike the interest rate by 75 basis points, sending assets price downwards. 

Related Reading: Bitcoin aSOPR Profit-Loss Junction Continues To Act As Resistance

But as these macroeconomic factors push many digital assets down, others resist the pressure and move forward instead. 

Algorand ALGO is one of these assets, recording price gains in its 24 hours movements. But BTC and ETH haven’t fared well. For instance, on September 20 and 21, Bitcoin lost its grip on $19K, falling to $18K. 

On September 22, BTC climbed again to $19K, an intraday high, and did not hold on to that level till press time. Currently, the BTC price is again bounced to $18,914, representing a 1.91% loss in 24 hours. 

Algorand’s ALGO Not Affected By Macros

While many cryptocurrencies bleed, ALGO is recording positive price movements. Currently, the ALGO price is $0.3761 on TradingView, and CoinMarketCap shows a 2.48% growth in 24 hours while 27.98% in the last week.

So far, ALGO price movements are all green, as seen in the chart above. The coin started an upward climb since the close of the market on September 17. It jumped from $0.2973 to $0.3109 the same day. 

On September 18, ALGO lost some of its gains to close the market at $0.2925. But a few hours later, the coin jumped again and closed the market at $0.3172 on September 19. Since then, to press time, ALGO has continued its upward movement. 

It climbed to $0.698 on September 22 and is today trading at $0.3767. So far, the ALGO price movement shows a continuous price gain for three consecutive days. 

Analysts have also pointed out that ALGO’s moving average convergence divergence is positive. Also, the coin’s RSI (Relative Strength Index) is at 58.18, showing that ALGO is closing to the overbought region. 

ALGO is currently trading at $0.3782. | Source: ALGOUSD price chart from TradingView.com
Why Is ALGO Surging 

Even though the crypto market is negative, a lot is happening in the ALGO ecosystem. Currently, the total volume locked on the ecosystem has grown considerably. The DeFi blockchain is recording massive interest, evidenced by the $244 million worth of TVL. 

This figure was its data as of September 22 after adding 4.09% growth in its TVL. Data also reveals that $100 million out of this liquidity came from AlgoFi. 

Apart from growing TVL, Algorand has made partnerships. The prominent one recently is the FIFA& Algorand partnership enabling the crypto network to FIFA+ Collect. This platform is where users will buy NFT items of many types. 

Related Reading: Compound Prepares For A Major Rally To $80, Here Is Why

According to the details of FIFA+ Connect, the platform will operate like NBA Top Shot. Its users can purchase artwork, highlights, images, etc., from prestigious soccer competitions. The platform will launch before the World Cup, slated for November. 

Featured image from Pixabay and chart from TradingView.com