Algorand Is Growing Silently And Why ALGO Might Pump Next?

Recently, when the market is still engrossed in emerging ecosystems like Aptos, Sui or NFTs, airdrops, we have almost forgotten last year's Layer 1 coins. This is understandable since most of them have poor performance and the price drops continuously. However, among them is still a coin that is quietly growing named Algorand.

Overview

Algrorand is a blockchain that has been launched since 2019 and is a familiar name to the community. Although the ecosystem is not very developed, Algorand is special due to the PPOS - Pure Proof of Stake mechanism. This mechanism randomly selects validators weighted with their staked ALGO. As a result, anyone who stakes ALGO has the ability to randomly and securely become a validator of Algorand.

➡ Algorand is strongly decentralized but not limited in scalability. Solving the difficult problem of layer 1 blockchains, making Algorand one of the top coins.

Growing in silience

Although Algorand does not have a strong attraction like the current hot names, Sui, Aptos, Arbitrum ... But actually this ecosystem is still quietly growing, and has many interesting expectations. It is possible that these factors will create a short pump in the near term.

Strong inflow of money

Total value locked – Algorand's TVL has been steadily increasing and reached an ATH of $325M today. Even though it's still downtrend and TVL is continuously decreasing among other layers 1, we have seen Algorand's TVL increase by more than 50% in just the past few weeks.

The daily transaction count doubled to over 2 million today. The number of active wallets on Algorand also increased sharply from 170k to more than 1 million.

Community's attention

According to data from LunarCrush, Algorand's social engagement index, which shows interest from the community, has increased sharply recently. Specifically, it reached nearly 13 million interactions, 12 times more than the 7-day frame. Obviously when the community begins to take a strong interest in altcoins, it is often the time to herald a strong price swing. In this case it is positive.

Collaborate with FIFA to make NFT

Algorand is the official partner and blockchain of FIFA. Not only have copyright and marketing effects, but Algorand also exclusively publishes the NFT FIFA Plus Collect set. This is the NFT collection that captures the most valuable moments in football history, similar to the NBA Top Shot set of basketball, once the king of the NFT field.

Especially, when Worldcup 2022, the biggest tournament on the planet is about to kick off in the next few weeks, this will be a very positive factor for $ALGO.

Lots of good news recenly

Just recently, the investment fund Hivemind Capital announced that it will invest and inject $80 million ALGO directly into the Algorand network to develop these projects and the whole ecosystem. At the same time, the FTX exchange suddenly announced that it would support Algorand's USDCa after a long time of being unnoticed.

And recently, in the community, rumors began to circulate that Binance will also support this USDCa in the near future. Stablecoins have always been a prerequisite for easily injecting money into an ecosystem, so this rumor got the community excited.

Summary

Algorand is a special layer 1 blockchain, although the ecosystem is not as robust as other chains. However, recently Algorand has quietly grown strongly. With that comes many positive stories surrounding the $ALGO token. So there is a basis to expect a pump for $ALGO in the near future.