The algorand (ALGO) cryptocurrency briefly moved above its June 2019 launch price in September, after trading at a loss over the past two years. The price continues to show signs of strength, trading up by more than 500% year-to-date.
What is ALGO and is the coin’s price set to take off? In this algorand overview, we look at the background of the project and the latest price predictions from cryptocurrency forecasters.
Algorand offers alternative smart contract DeFi platform
Algorand is a pure Proof-of-Stake (PoS) blockchain designed for fast decentralised finance (DeFi) transactions. According to the website:
“Beyond the elementary requirement of an open, public network, Algorand’s technology enables a set of high performing Layer-1 blockchains that provide security, scalability, complete transaction finality, built in privacy, Co-Chains, and advanced smart contracts that are essential in a FutureFi world.”
Algorand uses a Byzantine protocol with a pure PoS mechanism that enables a large group of people to achieve consensus on the next set of transactions – unlike delegated PoS, which selects a fixed number of elected block producers. ALGO tokens are not locked into the network when staked, unlike in bonded PoS systems, so users are not penalised for unstaking their crypto.
The Algorand Foundation is focused on developing interoperability, private and public models, performance and scale, and Layer-2 smart contracts.
Algorand was founded by Silvio Micali, a computer science professor at the Massachusetts Institute of Technology (MIT) in the US. He received the Turing Award in 2012 for his work on secure blockchain protocols, cryptocurrencies, two-party computation and electronic cash.
The algorand cryptocurrency was launched with an initial coin offering (ICO) in June 2019, with the price set at $2.40 a coin. The price quickly declined after the launch, falling below $0.20 in September 2019. It did spike in February 2020 and again in August 2020, but remained below $1 until the cryptocurrency markets began to rally earlier this year.
ALGO traded up to $1.82 in February, dropped back below $1 and then returned to $1.82 in April. But, as cryptocurrency markets retreated, ALGO dropped, bottoming out on 20 July at $0.6778, as the ALGO coin graph shows.
The price of ALGO coin climbed to a new all-time high at $2.54 on 13 September. It slipped to $1.55 on 20 September during a crypto selloff. In October, the coin traded between $1.60 and $2.09, looking to find support above the highs seen earlier in the year. At the time of writing (26 October), ALGO was trading at $2.01.
Partnerships accelerate Algorand blockchain adoption
The Algorand Foundation has announced several ecosystem partnerships and developments in recent weeks, with ALGO coin news providing support to the price.
On 31 August, the government of El Salvador, which is the first country in the world to adopt bitcoin (BTC) as an official currency, signed an agreement with Koibanx to develop its blockchain infrastructure on Algorand. On 10 September, the government of Colombia chose Vitalpass, a Covid-19 digital vaccination passport leveraging Algorand’s blockchain, as its official immunization certificate.
Algorand also announced agreements in September with Wyre to enable payment solutions, with e-Money to accelerate the circulation of European stablecoins, and with SkyBridge and NAX to build decentralised applications (dApps) on Algorand.
In October, Italy’s largest consortium of olive oil producers adopted the Algorand blockchain to increase the transparency and efficiency of its supply chain. Non-fungible token (NFT) developer Abris.io has launched an NFT marketplace on Algorand, and one-click social messaging wallet Alty has migrated to Algorand for instant and low-fee chat-based cryptocurrency transactions. And Sequoia Games has chosen Algorand to Power Flex NBA, its NBA-licensed, augmented reality board game.
Algorand is being positioned as an alternative to Ethereum as a smart contract platform, launching its Algorand Virtual Machine (AVM) in September. The upgrade to Algorand’s Layer-1 protocol is designed to provide the infrastructure for developers to build DApps and expand the use of the Algorand blockchain.
Back in June, Arrington Capital launched a $100m fund to invest in Algorand-based initiatives, bringing the total in funds created to support the ecosystem to more than $500m.
What’s the outlook for the ALGO crypto price as adoption of the blockchain grows?
ALGO coin price prediction: where will it trade in the future?
At the time of writing, ALGO coin analysis from several cryptocurrency forecasting sites indicated that the price could rise and surpass previous highs.
According to CoinCodex, short-term sentiment on Algorand was bullish, with 23 oscillator indicators giving bullish signals and three giving sell signals. Its algorand price prediction showed that the coin could reach $2.23 by 31 October.
The ALGO crypto price prediction from Wallet Investor projected that the coin could retreat to average $1.743 in November, then move up to $1.97 by the end of 2021. It predicted the price could rise to $2.955 by the end of 2022 and $5.886 by the end of 2025.
The ALGO token price prediction from DigitalCoin put the price at an average of $3.71 in 2022 and $6.06 in 2025, climbing to an average price of $8.86 in 2028 with a peak at $10.08.
The ALGO forecast from PricePrediction estimated that the coin could average $3.04 in 2022, rising to $9.97 in 2025. The service expected the coin to jump to an average price of $65.80 by 2030.
It is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict the price of a coin in a few hours, and even harder to give long-term estimates. As such, analysts and online forecasting sites can and do get their predictions wrong.
We recommend that you always do your own research and consider the latest market trends, news, expert opinion, and technical and fundamental analysis before making any investment decisions. And never invest more than you can afford to lose.
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