Algorand’s price surged by 4.8 per cent in yesterday’s trading session, following news of its latest upgrade that has made its performance five times faster. However, in the early hours of today’s trading session, Algorand looks to have resumed a bearish trend, dropping by a percentage point at press time.
According to reports, Algorand, known for its pure proof-of-stake, carbon negative layer 1 blockchain network, rolled out an upgrade that is quantum-secure and capable of hitting speeds of up to 6,000 transactions per second(TPS) on its protocol from an initial 1,200 TPS.
The upgrade will see Algorand continue to become one of the most competitive blockchain networks in the markets. The improvement of its transaction speeds, which was already among the fastest, will see Algorand continuing to cement its place in comparison with its competitors, such as Bitcoin, which processes 5 TPS and Ethereum, with only about 10 TPS.
The upgrade will also see Algorand starting to use State Proofs on its network. This additional function will enable Algorand users to make trustless cross-chain communication on the network by ensuring the secure connection of multiple blockchains without the need of a third party. To put it simply, the State Proof functionality will help secure Algorand’s network by eliminating the need for using bridges, which in the past few years, have become synonymous with cyberattacks.
Yesterday’s strong showing in the markets by Algorand price was in response to the upgrade, which is now live on the mainnet. However, the bump in price looks to have lost momentum coming into today’s trading session, which is already down by a percentage point.
Looking at the chart below, we can see Algorand’s price has struggled in the markets since August 20, and has traded in a horizontal trend for most of the time. Even with yesterday’s surge in price, Algorand still looked to be struggling. With today’s price resuming a bearish trend that was interrupted by news of a new network upgrade, my Algorand price prediction expects it to continue trading sideways.
There is a high likelihood that we may not see any significant movement in the markets for the next few trading session. I expect Algorand to continue trading within the narrow price range of $0.27 and $0.31 for the foreseeable future. My analysis will only be invalidated if prices trade below or above these levels.
This post was last modified on Sep 08, 2022, 12:05 BST 12:05