Algorand’s ALGO token has reached its yearly high recently, witnessing a 177.57% surge in the past 30 days. With 19% soaring in the past 24 hours, the token continues to attract investors.
Along with ALGO, various coins with similar use cases also witnessed small-scale upward movements. The uptrend of altcoins with stronger foundational values than the silly meme coins ignites hope in the upcoming alt run.
This article will get into the reasons for ALGO’s surge and try to figure out whether to invest in it or not. Also, we will provide a buying guide for the coin. Let’s begin.
The Reasons For ALGO’s Uptrend
The major reason for this surge is the hype over Algorand’s launch of staking rewards. The high amount of reward, combined with the rare mechanism of staking, has attracted validators and investors to the platform. The node validators will earn 10 ALGO per block and 50% of the transaction fees as well. With Algorand’s block time of 2.8 seconds, the rewards can be transferred immediately.
Beyond the removal of waiting time, there will be no token lockups. Validators can get hodl of their tokens whenever they need. This ignited a discussion among the stakers, many suggesting that Algorand’s staking is affordable and accessible compared to Ethereum and Solana, leading to millions of investments.
What Is Algorand?
Algorand is a payment-based blockchain protocol that aims to create a decentralized atmosphere and borderless economy. It uses a proof-of-stake algorithm that supports quick transactions and smart contracts. It uses the native coin ALGO for all the functions inside the network.
When Algorand was launched in 2017, investors were instantly attracted to it mainly because of its foundational value and the strong team behind it. Later in 2021, the market cap touched almost 14 billion dollars. The project was founded by Silvio Micali, one of MIT’s renowned cryptographers and the co-inventor of Zero-knowledge Proof.
ALGO Token Details
The token is used for various purposes including transaction fees, staking, voting, and additional rewards. It was launched on the mainnet in 2019. Shortly after, it went into an ATH of $3.28 per coin on June 21, 2019. The inflationary tokenomics didn’t raise the value of the token, it touched the ATH in market capitalization in 2021. As of today, around 44817934 ALGO blocks have been created. Here are some additional info:
| Token Ticker | $ALGO |
| Total Supply | 10 Billion ALGO |
| Circulating Supply | 8.28 Billion ALGO |
| Market Cap | $2.78 Billion |
| 24-Hr Volume | 633.58 Million Dollars |
| Block Time | 2.889 sec |
| Transactions | 16.7 txns per sec |
Where To Purchase ALGO?
Algorand has been here for around 5 years, with listing in almost all mainstream exchanges. It is available on Binance, Bybit, Coinbase Exchange, OKX, Upbit, Kraken, and many more platforms. It can be traded in the DEX DeGate with the ALGO/USDC pair.
Final Thoughts: Is It Too Late To Invest In ALGO?
The staking program will go live in December. So, we can expect the surge to continue till then. Also, the entire market scenario supports the altcoin bull run, which will ignite the fund flow into multiple potential assets. The chart analysis and market sentiment show a strong buy ratio. However, the exact opposite scenario can also occur depending on the external circumstances.
ALGO’s market cap is very low compared to its 2021 surge. Apart from the staking-based fund flow, it needs more back-to-back narratives to continue the uptrend, like those viral meme coins. Despite these short-term uptrends and downtrends, ALGO will be a valuable asset for your portfolio in the long run. Lastly, don’t forget to do your own deep research before making any investment decisions.