With thousands of projects in the market today, you are probably wondering, why should you invest in Algorand (ALGO) today? While there are many out there, very few have the fundamentals of Algorand.
Algorand (ALGO) is a platform blockchain that solves three key problems that most blockchains have found impossible to crack. These are decentralization, scalability, and security. This trilemma is so difficult that even Ethereum has been struggling with it.
Solving these three problems is so important to the growth of any blockchain. In the case of Algorand, it means that the project can handle limitless transactions, fast, and without compromising on network security, or decentralization. Essentially, any Dapp built on Algorand can compete at par with centralized systems. This alone is good enough to invest in Algorand.
However, it is not the only one. There are multiple reasons why it makes sense to buy Algorand. To simplify your decision-making process, here are 10 reasons why you should invest in Algorand today.
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10 Reasons Why You Should Invest In Algorand
There are all kinds of reasons why you might want to buy Algorand — probably some you’ve never considered. Here are top 10 that we found. And If you are a long-term investor, Algorand could be a very good investment for you.
1. Algorand has a strong developer team
One of the key determinants to the long-term success of a crypto project is the quality, and commitment of the developer team. The more active the developer team, the higher the chances of a project’s long-term success. Similarly, a team that is made up of developers, and cryptography experts is a much better pointer to success than one made up primarily of marketers and other non-tech people.
On both of these fronts, Algorand scores highly. The project has one of the most tech savvy team in crypto. For starters, the project founder, Silvio Micali is faculty at the Electrical and Computer Science department at MIT. He is well versed in cryptography, and zero-knowledge proof, among other technologies.
For context on how good he is at cryptography, Micali is one of the people that developed probabilistic encryption. He is also among the inventors of zero-knowledge proof, and other technologies that anchor cryptocurrencies. There are many other tech-savvy individuals on the team, including Chris Peikert, who is the head of cryptography at Algorand.
In terms of developer team activity, Algorand is one of the best in the market. This is evident in the project’s Github commits. The project’s latest update on Github was on 7th July 2021. It was about the implementation of Algorand in the Go programming language.
Such team quality and commitment is a safeguard that Algorand will always run as designed. It is a huge incentive towards the usage of Algorand for DeFi, and by extension, a key source of value in the long run.
It is also an incentive for speculators to bet on this project long-term. That’s because there is an assurance that it has people in place working to ensure that the protocol meets its core objectives. Essentially, Algorand’s team quality is a reason to buy and hold.
2. Algorand is an interoperable blockchain
Another reason why you should invest in Algorand (ALGO) is its interoperability. This simply means that anything built on Algorand can easily connect with other blockchains.
Interoperability is a big deal because it is at the heart of blockchain growth and mass adoption. That’s because it is only by blockchains seamlessly connecting with each other that businesses can have an incentive to invest in the tech.
For context on how important interoperability is, one needs to look at the internet. The core reason why the internet grew to where it is today is that it has in-built interoperability. It is for this reason that one can send an email through, and to email services, offered by different companies.
Similarly, if blockchain has to grow, decentralized applications built on Ethereum have to be in a position to connect easily with those built on Cardano, Solana, and so on.
Algorand factors this into its development, and it is a big deal. That’s because it incentivizes financiers to fund projects looking to build on Algorand. So far, Algorand’s interoperability has played in its favour, as the number of projects building on it has grown exponentially since its launch.
An example of a high-potential project that is built on top of the Algorand protocol is Monerium. This is a Dapp that allows one to instantly send Euros without having to go through a bank.
There are many other interesting projects on Algorand, and from an investor perspective, this is a big deal. That’s because, as these projects grow in value, and in number, so does the value of Algorand.
Read Also: Why Algorand Will Skyrocket
3. Algorand has a growing ecosystem
Algorand has a fast-growing ecosystem of projects building on top of it. Per the project metrics, the number of non-fungible tokens running on top of Algorand stands at 4,559,339. On the other hand, the total fungible tokens on Algorand stand at 4,100.
The number of Fungible tokens has particularly grown exponentially. In the last three months, the number has grown from 708 to 4100.
Such growth is important for a number of reasons. Firstly, it means that Algorand is a blockchain that people actually use. It’s a guarantee that the project value can never go to zero. This safety net is a key driver to attracting long-term holders to the project, a factor that is important to long-term growth.
Even from a speculative perspective, this is a big reason to invest in Algorand. That’s because, one is sure that there is an underlying demand for the project, and that the tokens actually have value.
For context on how important usage is, Ethereum is where it is today because it is heavily adopted for Dapps development. Its heavy usage has seen both retail and institutional money take a strong interest in the project.
Secondly, growth in usage helps in driving positive messaging about the project, thereby creating a positive multiplier effect on adoption. That’s because as complex applications are built on top of Algorand, many others will be incentivized to build on it. This in turn adds to the long-term prospects of this project.
The growing adoption makes Algorand a project worth investing in with the long-term in mind.
4. Algorand is available on multiple exchanges
One of the key indicators of a cryptocurrency that has good fundamentals is the type of exchanges where it is listed. Major crypto exchanges have stringent listed procedures to protect their clients from scams.
For instance, Binance, one of the world’s largest crypto exchanges, regularly delists cryptos that do not meet its listing criteria. It also out rightly denies listing for certain cryptos. The same goes for Coinbase and other tier-one exchanges.
Using this criterion, Algorand comes across as a pretty good crypto. It is listed on pretty much all major exchanges. Most of its daily trading volumes come from top exchanges such as Binance, Coinbase, Kraken, Huobi, Bitfinex, and Bittrex.
Besides the credibility that comes with such listings, being available on multiple large exchanges means that Algorand is pretty liquid. This means there is little chance of price manipulation through pump and dump schemes. As such you have a guarantee that the price you are getting is the correct one.
These aspects to listing have a number of advantages for Algorand. The most important one is that it gives this project credibility in the eyes of investors. In a market that is saturated with all kinds of projects, being able to attract new investors is critical.
It is most important now that institutional money is getting into crypto. With interest in crypto on the rise, this could play into the demand dynamics of this crypto. It makes it one of the best to buy today with the expectations of better prices in the foreseeable future.
5. It consensus algorithm guarantees decentralization efficiently
The consensus algorithm used to secure a crypto network matters a lot. Ideally, crypto can either use Proof-of-Work or the many variations of Proof-of-Stake.
Bitcoin uses a Proof-of-Work consensus algorithm, and while effective, it is terrible for the environment. This has seen many institutional players raise questions about it. One of them is Elon Musk, whose sentiments were interpreted as FUD by the Bitcoin community.
It is for this reason that many cryptocurrencies are turning to Proof-of-Stake. However, some variations of PoS have a weakness, in that they can easily lead to centralization. For context, unlike large networks such as Ethereum, small network whales can easily control the majority of the nodes without much of a pinch to their finances. This then defeats the whole essence of blockchain technology.
Algorand is one of the few projects that have got it right when it comes to Proof-of-Stake. It uses a Pure Proof-of-Stake algorithm that solves the three main problems facing most blockchains. The three problems are decentralization, scalability, and security.
To solve the problem of centralization, Algorand’s Pure Proof-of-Stake consensus takes an egalitarian approach to consensus. Using this approach, those running nodes at any given time are chosen randomly, regardless of how much Algorand they hold. This ensures that all investors have an equal say in the project governance, regardless of how many tokens they own.
To solve the problem of scalability, Algorand blocks are completed in a matter of seconds. This means that the network can comfortably handle millions of transactions without lags in the system.
As for the issue of security, Algorand’s consensus algorithm chooses blocks proposers cryptographically. This goal is to ensure that only honest participants take part in voting in a new block.
By solving the governance problem that plagues most blockchains, Algorand is among an elite group of cryptos that are primed for adoption. This by default, makes it one of the high potential cryptos to invest in today.
Check Out: Could Algorand Be a Millionaire Maker Coin?
6. Algorand is easy to use
A blockchain is as valuable as the number of people using it. For payment cryptos, the value comes from the people using them for payments. It is for this reason that Bitcoin is so valuable. Besides its low supply, Bitcoin has grown in adoption since its inception.
For platform blockchains, value comes from the number of developers using, or likely to use them in the future. It’s the reason why Ethereum has gained so much value over the years.
Using this metric, Algorand has pretty good prospects going into the future. One of the key advantages of Algorand is that it uses the Python programming language. Python is one of the most popular and easy-to-learn programming languages out there. This means that most developers would not have a hard time building on Algorand.
Besides using a popular programming language, Algorand offers developers tips on how to build on the platform. For instance, Jason Weathersby, a developer at Algorand has written a lot on everything from the basics of the Algorand Virtual Machine to writing smart contracts on Algorand.
A combination of the two above has led to an upsurge in the number of developments taking place on the Algorand blockchain. So far, there are dozens of high-value projects building on Algorand. The number of people issuing NFTs on Algorand is on an exponential growth path as well.
All this points to a blockchain whose intrinsic value is on the rise. From an investor perspective, this is good news. That’s because, one is assured that as crypto adoption grows, so will the value of this blockchain. There is also the security that despite the high volatility that characterizes the crypto market, this project will never go to zero.
7. It has a functional wallet
Having a functional wallet is one of the factors that can draw in, or put off, long-term investors from a crypto project.
A functional wallet speaks volumes about the seriousness of a crypto developer team. It is an indicator that they are serious about the project, and that is attractive to investors.
A functional wallet also negates most of the security risks that come with holding crypto. Without a functional wallet, investors are forced to leave their holdings in exchanges, or in wallets that they may not be so sure about it.
On this front, Algorand stands out as a pretty good crypto to hold. It has a functional and highly secure wallet that is also pretty easy to use. All one has to do is download it on their phone, and they are good to go.
However, it is the wallet features that make it quite attractive to investors. One of its most interesting aspects is the ability to earn through it. So long as one holds Algos in an Algorand wallet, they are assured to earn rewards.
This is a very important feature because it acts as a long-term safeguard against price fluctuations. That’s because despite the price fluctuations, the total number of Algo that one has increases over time.
Another interesting feature to this crypto that makes it very attractive is that one can assign names to addresses they are sending or receiving Algorand. For instance, rather than just having a string of letters and numbers, one can assign an address a name like John, Anne, or whichever other they choose. This significantly reduces the chances of sending Algo to the wrong address.
Essentially, every aspect to this wallet incentivizes an investment in Algorand, and makes it a good crypto to buy now in anticipation of growth going into the future.
8. Algorand is a perfect bridge between CeFi and DeFi
There is a lot of hype around DeFi at the moment. This is evident in the growth in DeFi project valuations, and in the amount of dollars locked in such platforms. However, in reality, DeFi is nowhere close to matching the value of centralized finance. Very few people globally, even those invested in it, understand how DeFi works.
For this reason, the future belongs to projects that can bridge the two. Since the transition from centralized to decentralized finance will be gradual, such projects hold promise, and Algorand is one of them.
One of the ways that Algorand is acting as a bridge between the two is through partnerships with strategic centralized finance players. Some of the institutions it has partnered with include SWIFT, HSBC, Facebook, and OMFIF.
Besides introducing such institutional players to DeFi, Algorand also offers a comprehensive guide on the development of smart contracts. The platform understands that smart contracts are an integral part of the future of finance, and as such, should be easily understandable to those in centralized financial institutions.
The Algorand team has also made the platform very attractive to stable coins such as USDT, and USDC. This is a big deal because as the legacy financial system comes into contact with DeFi, stable coins are proving to be a very important tool.
Put in context, Algorand has laid down the infrastructure to bring in the trillion-dollar legacy financial system into the future of finance. The amount of money involved is so huge, that as a bridge, Algorand is well-positioned to grow exponentially in value, going into the future. It is a pretty solid reason to invest in Algorand, now.
Read Also: Pros and Cons of Investing in Algorand
9. Algorand is in the fast-growing NFTs market
The number of NFTs launched on the Algorand blockchain has shot up over the last couple of months. Per the project’s metrics, over 4.5 million NFTs have been launched through the Algorand blockchain.
This is a big deal because NFTs are the next big thing in crypto after DeFi. To understand this, one only needs to look at the level of investment that is going into DeFi.
Recently, top organizations such as Disney, Fox Corporation, Marvel, DC Comics, and Instagram, have all hinted at investments into NFTs. The demand for NFTs is pretty high too if recent sales are anything to by. One of the most expensive NFTs to ever go on sale is Beeple’s, and it sold for $69 million.
As this space grows, blockchains that make it possible to issue NFTs are likely to experience value growth. Algorand is not just a player in this market but has also made it so easy for those looking to issue NFTs.
The project has a detailed webinar designed to help anyone who might be interested in turning anything they want into an NFT. It’s a good reason to bet on this project long-term.
10. The entire crypto market is in a buy zone
The best time to invest in any asset is when the price is low. The crypto market has proven this multiple times in the past. Back in 2018, the market crashed, and most altcoins lost over 70% of their value. In the 2021 rally, most of them recovered all these losses, and went on to test new highs.
The current correction presents a similar opportunity for all major cryptocurrencies. Bitcoin has shed about 50% of its value, while most altcoins are down by 70% to 90%. Given the growing institutional interest in this market and the technical developments ongoing in crypto, chances of another bull run are pretty high.
Algorand is particularly well-positioned for gains because it is right in the middle of two fast-growing markets: DeFi and NFTs. As these two aspects of the crypto market get adopted, the value of Algorand will grow. That’s because the project has in place the incentives to attract developers and investors for the same.
In essence, it is one project that could retest and surpass its all-time highs in the next bull-run. It makes sense to buy it now and hold it for the future.
Going by its core fundamentals and overall market dynamics, Algorand is a project worth buying. The project has a talented and highly active developer team. The project is also quite strategic in its approach to DeFi and NFTs, two of the fastest-growing markets in crypto.
The broader crypto market is on a growth path too. The number of institutional players getting into crypto is on the rise. Data shows that by 2026, most hedge funds will have about 7% of their portfolio in crypto. Since all cryptos tend to rise and fall in value simultaneously, good prospects for the whole market are good prospects for Algorand.
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