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.
ALGO has put on a stellar performance this year. While Bitcoin (BTC) has been in a steep correction during mid-September, ALGO reached its 52-week high of around $2.50.
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 September 2021 is around $11 billion, ranking it the 18th biggest cryptocurrency according to CoinMarketCap ($11,204,422,537). The current price of a single ALGO token is about $2. There is much room for the project to grow compared to its biggest competitor, Ethereum’s, which has a $400 billion market cap at the time of writing.
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 $11 billion market cap shows its enormous growth potential compared to its top competitors Ethereum at $400 billion or Cardano’s $80 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 $5 by the end of 2021. If Bitcoin has a parabolic blow-off top, he sees Algorand reaching as high as $6 by early 2022.
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 and Coinbase. 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.
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.
- Traders who want access to a secure, low-cost cryptocurrency exchange
- Passive investors who want to earn interest on their balance without frequent trading
- Mobile investors who prefer to handle all their crypto needs via their phone or tablet
- Low fees
- High security
- One-stop shop for all your crypto needs (wallet, trading, spending, and more)
- Lots of ways to earn interest, rewards, and rebates
- Low privacy
- Customer service response time could be improved
eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features
- U.S. based cryptocurrency traders
- Social and copy traders
- Simple user interface
- Community engagement and following other traders
- 25 cryptocurrencies
- Expansive network of social trading features
- Large client base for new traders to imitate
- U.S. traders can only buy cryptocurrency
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 September 2021, the overall crypto market cap continues to hold above $2 trillion. The Bitcoin price is recovering after suffering a harsh correction and is again looking to break above $50,000. Ethereum has also recaptured some of its upward momentum and is looking toward $3,600. Hedera Hashgraph (HBAR) and Elrond (EGLD) are two of the best performing altcoins this week.
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.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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