Why Algorand Will Skyrocket
The cryptocurrency market has been gaining massive traction over the past few years. The current market capitalization amounts to almost $2 trillion, which is undoubtedly a whopping number that cannot be ignored by financial investors and institutions worldwide.
Following the path of Ethereum, there has been intense competition in the crypto space for blockchains that support smart contracts with complete security and high scalability. Algorand (ALGO) is one such cryptocurrency gaining immense popularity and attention in the crypto space in 2021.
It is a decentralized digital currency and smart contract platform that ensures high security and is relatively scalable. ALGO aims to revolutionize the traditional financial industry by offering a viable solution for the blockchain trilemma.
So will Algorand skyrocket in 2021? Let us explore some of the significant features and prominent partnerships that drive the token’s value.
Why Choose Algorand?
Algorand is a publicly accepted blockchain that aims to provide users with decentralization and security. Significant features of this digital asset are that it is a permissionless, open-source, public, scalable and secure network. Furthermore, accessibility, immediate process, direct usage, easy adoption, and efficiency are some of the core concepts of its framework.
Algorand’s trading volume competes with some of the well-known financial and payment systems in the market today. Founded by the renowned Italian computer scientist and professor Silvio Micali, the platform can handle almost 1 million transactions per day. Moreover, it processes a relatively faster transaction at fewer costs.
Since it is based on a permissionless pure proof-of-stake blockchain protocol, it is highly energy-intensive and an environmentally friendly token, unlike Bitcoin.
Is Algorand Going To Skyrocket In 2021?
The unique blockchain project focuses on creating a transparent system where anyone can access and succeed through decentralized projects and applications. Algorand solves the blockchain trilemma by negating the major technical barriers to blockchain adoption: scalability, decentralization, and security.
Scalability is indeed a unique and innovative feature of Algorand. The blockchain ensures that transactions are processed and completed instantly and accurately without branching. It has resolved uncertainty and lack of transactional integrity, unlike its competitors, and positioned itself as a highly scalable network in the crypto space.
Furthermore, Algorand was also opted as the first token by the government of the Marshall Islands to host its CBDC. Using Algorand’s secure, scalable, and speed platform, the Marshall Islands launched their digital currency SOV. Thanks to its highly compatible and user-friendly features, the process of integrating the currency into the world economy was relatively seamless.
This incredible expansion attracted numerous investors from around the world, skyrocketing ALGO to new heights. The whopping rate was one reason why the coin was listed on major exchanges like Binance, Coinbase Pro, Huobi Global, OK Ex, and many more.
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Factors Driving Algorand To Skyrocket
Apart from the continuous price rise, there are several other reasons why Algorand will skyrocket in the coming decades.
#1 The Partnership with Società Italiana degli Autori ed Editori (SIAE)
A significant reason for ALGO’s price to skyrocket in 2021 is its strong partnership with SIAE in March. Both the networks, with their unique coalition, created a project that supports the author’s rights.
SIAE will be using NFT technology to provide complete security to its author’s rights by deploying the Algorand blockchain. As a part of this, Algorand will be launching 4 million NFTs using its blockchain technology, which represents over 95,000 SIAE member’s rights. This would be a milestone to be remembered by both communities.
#2 The $100M Algorand Ecosystem Fund Launched By Arrington Capital
Arrington Capital, a prominent digital asset management firm in blockchain-based capital markets, has announced the launch of a $100 million fund for bets on projects building on the Algorand blockchain. The fund will be helping in the payment of investments ranging from non-fungible tokens to a partnership with Maimi to utilize Algorand in municipal projects.
All these efforts ultimately are to boost the development of Algorand’s ecosystem. This funding will further help the project enhance its network functions, eventually accelerating its adoption rate and skyrocketing its price.
#3 Yieldly - The World's First DeFi Products On Algorand
Even though the Algorand network is highly scalable and solves the blockchain trilemma, it lacks an established DeFi ecosystem. With its enthusiastic efforts to gain a significant edge in the lucrative decentralized finance (DeFi) sector, Algorand launched its first native DeFi application, Yieldy.
Following its debut recently in June, Yieldy has launched a no-loss lottery for ALGO holders as its initial use case and has amassed over $11 million in total value locked (TVL). Further, On June 18th, it launched Yieldly Bridges, a mechanism that ties the Algorand ecosystem to major platforms, like Ethereum, Polkadot, and Binance Smart Chain, accelerating its adoption rates. Specifically, the bridge consists of three significant features.
- It is the first to connect Algorand Standard Asset to ERC-20
- The bridge opens Algorand to over 600,000 active Ethereum users
- It facilitates cross-chain staking for ASA, ERC-20, BEP-2, and BEP-20.
#4 The Blockstack And Algorand Joint Venture - Clarity Smart Contract Language
Blockstack, which is considered as an alternative to Google with Brave Browser and Algorand, has jointly announced an independent open-source project recently. The joint venture aims to release a first-of-its-kind smart contract language that is more safe, secure, usable, and predictable.
Since it is specifically built to cater to the needs of developers, who work on high stake transactions, it should be more reliable and predictable. It will also be the first time two leading cryptocurrency projects have released a Clarity Smart Contract Language together.
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Why Algorand Will Skyrocket: Expert Predictions
Accurately predicting a digital asset’s price is a difficult task since they are highly volatile. But several crypto experts have high hopes for the ALGO token for the coming years. Experts from DigitalCoinPrice say that ALGO will end 2021 with a price tag of $1.92.
According to Wallet Investor, ALGO is a solid long-term bet and has quite a high bullish prediction of $2.302 by the end of 2021. Further, they expect the price to hit almost $6.4 by the end of 2025.
Should You Invest $1000 in Algorand Right Now?
Algorand is one of the most active digital assets today in the market, with a market cap of almost $2 billion as of writing. With its unique consensus protocol that solves the blockchain trilemma, Algorand has positioned itself as a strong alternative to other platforms in the DeFi space, such as EOS or Ethereum.
For this reason, it is the technology of choice for more than 500 global organizations today and the reason why Coinbase has started moving its USDC over to ALGO. With the amount of support the project has from global organizations along with its dedicated development team, the ALGO token could be an ideal investment option to consider since it is trading at $0.7965 as of writing.
Algorand is created with an environmental impact focus from the beginning, making it a sustainable, future-ready blockchain project. Thanks to its Pure Proof-of-Stake blockchain, it has a relatively low staking mechanism and is more energy-efficient than other tokens. It is also offsetting its small carbon footprints in partnership with ClimateTrade.
Decentralized finance is one of the fastest-growing sectors within the global blockchain ecosystem. It is still in its nascent stage and has numerous untapped potentials. Algorand, with its unique blockchain technology, offers users a thriving DeFi ecosystem. Therefore, it has the potential to grab the attention of more investors as well as institutions. If Algorand continues to focus on new developments, it could likely skyrocket its value and price soon.
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