Algorand (ALGO) price prediction is not looking good for the near term. The price is currently trading at its historic lows due to the recent lawsuits of SEC against crypto exchanges Binance and Coinbase. In these lawsuits, SEC has accused the exchanges of trading unregistered securities while also mentioning altcoins like Cardano (ADA), Polygon (MATIC), Solana (SOL), and Algorand (ALGO).
Every year, an estimated $5 trillion is wasted on transaction fees alone. Add the fact that over 2 billion people lack access to the modern financial system. This is because these systems do not see the worth of having them on their books. They simply cannot be commercialized. This is where Algorand crypto comes in, with its state-of-the-art blockchain technology that alleviates some of the scourge caused by traditional financial systems.
Algorand blockchain was founded by Turing award winner and MIT professor Silvio Micali in 2017. It is an open-source payment-focused blockchain network that is primarily focused on solving one of the biggest cryptocurrency challenges: scalability.
To achieve this, Algorand crypto employs a more scalable form of “proof-of-stake” in their network. In cryptocurrency, a proof-of-stake secures transactions by ensuring that no new tokens are created out of thin air. It also ensures holders of the tokens in the network have earned them.
Algorand’s native cryptocurrency ALGO was launched in 2019. During the launch, 10 billion tokens of ALGO tokens were created, with a majority of these coins locked up, and only released to meet demand.
Of the 10 billion ALGO tokens that were created, 2 billion (20 per cent) went to Algorand Inc. 500 million tokens were also allocated to Algorand Foundation.
The remaining ALGO tokens will be distributed to platform users over time. This includes an estimated 2.5 billion that will be auctioned by the Algorand Foundation. Furthermore, 1.9 billion will go towards rewarding Algorand network participants. Finally, users running relay nodes will get roughly 3.1 billion tokens.
Algorand is a very volatile digital asset. In the bull run of 2021, ALGO price hit $2.38, which was far less than its 2019 all-time high of $3.56. Since its 2021 peak, Algorand price has been in a tailspin. After a brief bounce at the start of 2023, the price has dropped to its lowest level in history.
This negative price action can be attributed to the SEC’s crackdown against cryptocurrencies and the ongoing crypto bear market.
Algorand has found usage in a number of applications and has been integrated to run on various blockchain technology platforms.
Its adoption can be classified into various categories, such as integration partners and platforms that run on the Algorand ecosystem. Examples of integration partners include KoiBanx, Cartan, Reply, and Euranet.
Some of the platforms that are currently running on the Algorand ecosystem include Six Clover, Eros now, RHOVIT, Hex Trust, Instimatch global, and Razor.
For instance, Marshall Island selected Algorand to power the first national digital currency known as the SOV. The currency will circulate on the Island alongside the US dollar. Authorities on the Island indicated they took the step to help them efficiently operate in the global economy.
According to the TVL tracking site, DeFi Llama, there has been a massive decrease in the Total Locked Value (TVL) on Algorand blockchain in the past few months. Since the start of 2023, the TVL has plummeted from $183 million on June 16 to only $84 million now.
The latest analysis of the ALGO crypto chart reveals that the price is currently retesting its 2020 lows. These lows lie just below the major psychological level of $0.10. If the price gains acceptance below $0.10 then any hypothetical downside target could be on the cards.
In order for Algorand price prediction 2023 to avoid this bearish outlook, the price must break above its $0.28 resistance which is more than 180% above its current price.
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Looking at Algorand today, you may be mistaken to assume that the current long-term bearish trend will continue forever.
However, the entire crypto market industry is on a downtrend. For instance, Bitcoin is down by almost 50% from its all-time high. This is important to note because my Algorand price prediction 2025 is very bullish, and I expect the markets to resume their bearish move.
Looking at the weekly Algorand chart, I expect the price of Algorand to be trading at around $5 at the start of 2025. My analysis is based on the technical analysis of the historical performances of Algorand. Also, I have taken into account the previous price highs, volatility, and yearly range the crypto has traded since its launch.
For starters, the rate at which the crypto drops in price is higher than it corrects the prices. This year, for instance, has seen the prices drop by 47%, and they are yet to recover.
Therefore, based on these facts, I expect the crypto to trade within a very wide range, and by 2025, the prices to be around $5, a 450% increase from the current prices. Algorand will trade within the brick red region as shown below during 2023 to 2025 bullish run.
Based on my previous Algorand price prediction for 2022 and 2025, I expect it to grow at the same rate between 2025 and 2030. I also expect the crypto to be trading above $10 by 2030. This will be a 1,300% increase in the next 8 years from the current prices of 0.9.
My Algorand price prediction 2030 is also not far off from the crypto’s past performance. For instance, Algorand prices were able to come from an all-time low of $0.1 and trade at $2.8, a 2,800% increase in less than two years. Although I do not expect such volatility going into the future since the prices have stabilized, a 1,300% increase in eight years is a conservative value based on past performances.
The yellow region on the monthly chart below represents the area where I expect the prices of Algorand to be confined between 2025 and 2030.
Algorand is pushing for Ethereum compatibility by offering $20 million to app developers who can make the network Ethereum Virtual Machine (EVM) compatible.
The push by Algorand to have their platform compatible with EVM will see the platform attracting large projects. It will also mean projects built on Ethereum or Ethereum compatible will also be compatible with Algorand, giving the platform a big edge to its competitors.
My Algorand price prediction shows that the prices will increase by 250 per cent by the end of 2022. The analysis also shows that the prices will be 450 per cent up from the current prices in 2025 and 1,300 per cent up in 2030. This means that the crypto will have an average annual return of 37 per cent between now and 2030.
Compared to other institutions such as stock market returns which as an annual growth rate of 10 per cent, and hedge fund institutions that average 10 to 20 per cent return on investment per year. This means that Algorand investment will have a higher return on investment, hence a perfect investment for long term traders.
This post was last modified on Aug 23, 2023, 08:38 BST 08:38