Why Algorand Is Going To Explode In 2023

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Last Updated December 29th 2022
7 Min Read

Over the past few years, there has been noticeable hype around the potential of blockchain technology and cryptocurrencies to accurately disrupt the movement of money and other assets around the world. Sceptics of the same vision used to argue that blockchain technology is not sustainable enough for mass adoption. 

But, Algorand (ALGO) is one of the recognized public cryptocurrency blockchain platforms that emerged in 2019, aiming to solve these issues. With its unique, scalable, and secure architecture, the token has captured the attention of crypto investors of late and continues to do so. 

In 2021, Algorand gained huge traction in the crypto community with its prominent partnerships, adoptions, and use cases. 

Therefore, crypto enthusiasts predict that the coin will hit a record high by the end of the year. Let us see why Algorand is going to explode in 2023. 

Looking At 2023: Is Algorand Price Set For A Massive Year?

Algorand was created with an aim to solve the issues related to blockchain technology with its unique and scalable architecture, which does not completely negate traditional benefits of blockchain technology like decentralization and security. 

Therefore, the platform offers security, scalability, and decentralization along with transactional finality achieved within seconds. Several features back up the prediction that Algorand will likely explode in 2023. 

#1: Unstoppable Rally

Beginning 2021 at $0.42, the token surged over 335%. Currently, it's trading at $1.11.

Algorand is the brainchild of the renowned MIT cryptography expert Silvio Micali. It is also backed by a group of world-class academics, businesses, and marketers. 

Algorand accelerates the convergence between decentralized and traditional finance by allowing the creation of next-generation financial products, protocols, and exchange of value. Today the blockchain is significantly used in immobility, microfinance, and several other areas. 

#2: Significant Features Of Algorand 

The digital asset aims to build a borderless economy using decentralized, unregulated public blockchain technology. The core concept of the whole framework is accessibility, immediate process, direct usage, adoption, and efficiency. 

A significant feature of this open-sourced decentralized blockchain network is the two-tiered architecture and its unique Pure Proof-of-Stake consensus mechanism. It increases transaction speed tremendously. As soon as a block is added to the blockchain, users can make no further changes to it, delivering instant finality. 

The platform was built in response to the slow transaction times and scalability issues of cryptocurrencies like Bitcoin and other blockchains. The feature of the Algorand platform that makes it unique from other blockchain networks is, it has almost no probability of forking. It also has a built-in governance mechanism that offers token holders a chance to vote changes on the platform. 

#3: Algorand Standard Asset (ASA)

The Algorand Standard Asset is a unique protocol that provides a standardized Layer-1 mechanism to represent any type of asset on the blockchain. It can be fungible, non-fungible, restricted fungible, or even restricted non-fungible assets. 

It allows developers to create new tokens or even transfer existing ones to the Algorand ecosystem. For instance, stablecoins like USDT and USDC exist as ASAs on the Algorand blockchain. These coins enjoy a higher throughput and relatively lower transaction fees than on other platforms like Ethereum.

The ASA protocol has significantly boosted Algorand’s usability and adoption, allowing it to enter multiple partnerships. 

#4: Solving The Blockchain Trilemma

The prime benefit of the Algorand platform is that it offers a viable solution for the blockchain trilemma. It’s a basic theory that a blockchain can only focus on two out of three features like scalability, security, and decentralization. 

The blockchain trilemma is usually born out of the consensus mechanism Proof-of-Work and Proof-of-Stake that most blockchains use. This is where Algorand’s unique Pure-Proof-of-Stake (PPoS) consensus mechanism comes in handy. 

Submitting blocks and voting is possible for all users with a coin and is never limited to a few, ensuring complete decentralization. The innovative cryptographic self-selection technique provides seamless validation of each block, negating the need for direct communication with each member. The transactions are much faster and achieve finality in a few seconds, making it highly scalable.

Finally, it ensures tight security with almost zero forking and uncertainties. Rigging the consensus system is nearly impossible as validators are chosen secretly from the network. 

#5: The Best Blockchain To Build CBCD

Algorand has become a viable option for central banks to host their central digital currencies with its unique technology. It was first chosen by the government of the Marshall Islands to host its CBDC. The country was the first to power World's First National Digital Currency with Algorand. 

This strategic move was to help the citizens by avoiding high transaction fees, simplifying compliance with international partners, and protecting against inflation. This adoption has significantly boosted Algorand’s popularity worldwide as one of the most accessible blockchain networks in the crypto space. 

Check Out: 5 Of The Cheapest Cryptocurrencies To Own  

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Algorand - The Perfect DeFi Platform

Decentralized finance is one of the emerging popular concepts in the crypto space today. The reason why experts predict that Algorand will most likely explode in 2023 is the thriving DeFi ecosystem that puts it ahead of its peers. 

With its brilliant consensus protocol that solves the blockchain trilemma, Algorand offers a strong alternative to other platforms in the DeFi space, such as EOS or Ethereum. By offering the necessary functionalities for DeFi applications, it provides a highly scalable and secure network for users. 

It has also partnered with organizations like ISDA, Coinbase, and The Realio platform, marking it the best for DeFi transactions. Further, Algorand is currently capable of hosting decentralized application (Dapps) development by offering scalability. 

The Sustainable Green Coin  

Apart from all these, Algorand is the world’s first Pure Proof-of-Stake blockchain that offers security, scalability, and decentralization in an eco-friendly and sustainable way. Given Elon Musk’s recent comments on this topic, Algorand appears to be on the right side of the fence, attracting numerous eyeballs. 

According to the team, Algorand was built as a green cryptocurrency with an environmental impact focus from its very beginning. The founder’s major focus back in 2018 itself was to build a sustainable token for our planet with next-generation technology. 

Its PPoS protocol has a relatively low staking mechanism for participating in and securing the network, making it far more energy-efficient than other tokens. Needless to say, the token has gained quite a lot of traction lately, skyrocketing the price to explode by the end of this year. 

The Exodus - Algorand Partnership

2021 was, without a doubt, a great year for Algorand, with increasing institutional interest and new partnerships. One such coalition was with Exodus, a company focused on making cryptocurrency accessible and seamless for a wider audience. 

The company recently announced that its digital Common Stock Tokens, each representing one share of its Class A common stock, the EXIT tokens, will use the Algorand as their native blockchain. 

Algorand was chosen by Exodus for its ability to offer a secure and user-friendly platform required for EXIT tokens. 

JP Richardson, Co-founder and CEO of Exodus, said that “Exodus is ecstatic to partner with the Algorand team since its tech provides a rich Layer-1 with many exciting use-cases to power next-generation decentralized applications for our customers. Even better, the team built a modern marvel in Layer-1 scalability."

Why Is Algorand Going To Explode In 2023? 

Thanks to its scalable, sustainable, and efficient blockchain network, Algorand is entering into numerous partnerships and is adopted by several institutions around the world. With its architecture offering speed, security, and decentralization, several high-profile projects are opting for Algorand to create their protocols.

Further, with its highly sustainable and environmental approach, the team is offsetting its small carbon footprints in partnership with ClimateTrade. 

For those looking for an efficient future-ready blockchain, this is certainly an option to keep an eye on, as ALGO’s price might hit record heights this year. 

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The Bottomline 

The Algorand platform is significantly developing, not just in smart contracts but also as an efficient network for decentralized finance. From creating carbon credit marketplaces and expediting real estate transactions to creating a new legal tender, Algorand is all set to initiate a massive rally this year. 

Therefore, considering all these factors and expert predictions, we could probably say that Algorand is likely to explode in 2023.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.