Several altcoins are entering the market, intending to offer unique features. Algorand was launched to enable speedy transactions with enhanced security and relatively lower fees.
Algorand introduced the world’s first proof of stake foundational blockchain. Their advanced technology provides a set of efficient layer one blockchains that offer scalability, security, and built-in privacy. It’s a smart contract platform, and its digital asset is called ALGO.
Algorand is focused on the DeFi industry but has been used in other industries too. Incentivizing users with native tokens through value accrual or yield generating mechanisms has increased the adoption of DeFi products while generating more usage of the new products.
Recently, the Algorand Foundation has announced a $300 million fund earmarked for the creation and adoption of DeFi products built on the Algorand platform. At the current value of $0.668, Algorand is worth over $4.4 billion, ranking as the 31st most valuable cryptocurrency. Although the network has experienced considerable growth and adoption in 2021, it needs to repeat the feat in 2022 to pose a challenge to the dominance of ETH in the DeFi space.
Algorand Price Analysis
According to our ALGO price prediction, the price of Algorand already began with a positive rally before stepping into 2022. The altcoin was trading at one point and was trading at $2.6 at its peak. By the end of 2021, Algorand has gained over 350%. Since hitting the all-time high valuation, ALGO has undergone significant profit booking over the last six months resulting in a decline of 71% of its market value.
Algorand has developed a strong resistance at $1, while there seems to be some support at $0.6 levels since it has supported ALGO prices over the last year’s ups and downs. Since the coin is trading below the 200 DMA curve, it is negative for the time being.
However, considering all the viewpoints around ALGO, it can retrace to a higher value and trade around $2 by the end of 2022, Algo’s projections for the next five years. Algorand’s price forecast over the years shows that the token is set to do better than it has done so far; despite the recent weakness, 2021 has been a success story for ALGO and needs to continue its expansion in 2022 for sustainable growth.