2021 was a great year for cryptocurrency enthusiastic investors. Many made lots of money within short periods. Many long-term investors saw their crypto assets become a lot more valuable during the bullish market. Others are still investing heavily with the hope that their investments will make them richer in the future.
The beauty of the cryptocurrency universe is that there are so many investment options open to any interested person. Sometimes, the most popular assets are not the best ones, which is why looking deeper can be highly rewarding. This is why we are going to focus on one of the less-known cryptocurrencies – Algorand.
It is important to point out that Algorand is not an unknown cryptocurrency by any means. However, it is not as popular as Bitcoin or Monero.
But is Algorand a good digital asset for long-term investment? Can it make you rich in ten years?
To answer the questions above, we have to dig deeper to know Algorand and determine what the future holds for the coin. To ascertain how useful and valuable the coin will be in ten years, we have to discuss the ecosystem and thoroughly consider the price history and recent performance of the coin.
At Trading Education, we believe that providing accurate information is one of the best ways to help readers make the right investment decisions. We won’t make the decision for you – but by carefully reading through what we have here, you should be able to make the right decision in the end.
Contents:
- What Is Algorand?
- What Is The Main Goal Of The Algorand?
- Is Algorand A Good Investment
- Price History of Algorand
- Algorand Price Predictions
- Where Will Algorand Be In the Next Ten Years?
- Why You May Want to Invest In Algorand
- Reasons to Think Twice About Investing In Algorand
- Should You Play The Long-Term Game With Algorand?
- Interested In Algorand? Invest the Smart Way
What Is Algorand?
Algorand is a proof-of-stake blockchain that supports smart contracts. It is one of the latest altcoins that are changing the way people think about cryptocurrencies in particular and the global financial system in general.
As a cryptocurrency platform, Algorand's major goal is to build a borderless economy using a decentralized and unregulated public blockchain. It seeks to facilitate digital transactions without borders, leveraging blockchain technology to reach everyone on the planet.
Accessibility is one of the prime concepts behind the founding of Algorand. In addition to making it easy for everyone to access a global platform for financial transactions, Algorand seeks to achieve immediate processing, direct use, full-scale adoption, and improved efficiency in every transaction.
Algorand is a relatively new cryptocurrency platform, but it is doing so much to achieve most of its lofty goals. Its major challenge, at the moment, is to create a rapid and flexible network without sacrificing decentralization, which is the very essence of the cryptocurrency movement.
Algorand protocol uses pure Proof of Stake (PoS), which entails users being selected randomly and secretly to propose blocks and vote on the proposals. This is how updates and changes are achieved on the network. The major benefit of this format is that it makes every user of the platform a true stakeholder that can influence decisions. The influence of each user is always proportional to his/her stake in the network.
It is important to state at this juncture that Algorand has a native currency like other crypto platforms. This currency is simply called ALGO and is traded like other crypto coins. When we discuss investing in Algorand, the focus is always on the ALGO coin. It is a digital currency you can buy and hold as an asset, with the hope that the value will appreciate and you can sell in the future to make a profit.
Read Also: Could Algorand Be a Millionaire Maker Coin?
What Is The Main Goal Of The Algorand?
Before we delve right into the potentials of investing in ALGO, let’s quickly shed more light on the major goal of Algorand as a cryptocurrency platform.
The network's primary concern is to make it possible for everyone within the blockchain ecosystem to conduct seamless transactions. To make this possible, it utilizes permissionless and decentralized public blockchain technology.
Algorand doesn’t want to be “just another cryptocurrency.” The team is interested in solving the blockchain trilemma, which means they want the platform to have all the three important features of a blockchain platform, namely decentralization, security, and speed (scalability). It is important to note that most cryptocurrency platforms normally choose two from the three. Bitcoin, for instance, has decentralization and security. Ripple, on the other hand, has speed (scalability) and security.
Another important goal of the Algorand network is a reduction in computational transaction costs. It is aiming to make transaction costs as low as possible without sacrificing decentralization, speed, and security. This is a tall order, but the platform is doing great already, especially when you consider the fact that it is relatively new.
More About the Algorand Token (ALGO)
We’ve already introduced ALGO as the native currency of the Algorand network. It is the digital coin you will buy to invest in Algorand. It is the important thing to focus on if you are hoping that investing in Algorand will make you rich in ten years.
The first important thing to know about ALGO is that it has a high supply. At the moment, about 6.53B ALGO is in circulation, and this is just 31% of the expected total supply of 10 billion ALGO. The team plans to distribute about 800 million tokens every year until 2030, and that is a lot by all standards.
One of the things high coin supply does is keeping the price of the coin low. As a lot of new coins come into circulation, ALGO will most likely experience a high inflation rate. This will drive down the price, but it doesn't necessarily spell doom for investors. If the platform manages to keep attracting businesses and developers, the value of the token will keep improving.
Is Algorand A Good Investment
The Algorand platform is incredibly exciting. The team is working very hard to deliver on their promises, and this will likely attract many businesses and investors in the future. But does that translate to lots of profits for investors? It doesn’t always work that way.
To be a good investment, ALGO must be able to gain value so that investors can record profits. How can you tell whether it can gain value or not? You will need to look at the past, the presence, and the future of the coin. In other words, you need to consider the price history of ALGO, its recent performance and current position in the market, as well as reliable predictions. We will do all of that right away.
Check Out: Why Algorand Will Skyrocket
Price History Of Algorand
The ALGO token was launched through an initial coin offering (ICO) in June 2019. The team managed to sell 25,000 tokens at $2.40 to earn $60,000,000 to develop the project. We’ll be correct to say that the coin started its trade journey at $2.4 on June 20th, 2019. The following day, it reached an all-time high of $3.28.
After the ICO, the value of ALGO dropped meaningfully over the next few weeks. By the end of July, it was selling at $1.43 per token. Their bearish market that affected most altcoins in 2019 had a devastating effect on the new coin, and by the end of September, the price had dramatically gown down to $0.18. The price fluctuated considerably between October and December, and the coin was only able to close the year at $0.23.
ALGO started 2020 on a bearish trend, averaging $0.21 in the first week. The coin started to recover slowly, and by the end of February, it traded at $0.45. Just when it seemed like ALGO could recover from its slump, another bearish trend hit the token. It was so bad that the price dropped to an abysmal $0.12 by mid-March. In fact, the coin reached an all-time low of $0.1024 on March 13th, 2020.
From April 2020, ALGO started to recover slowly. It was able to reach $0.65 and declared a degree of resistance in mid-August. It experienced some downswing again and was only able to finish 2020 at $0.33.
Recent Performance And Current Position Of Algorand
2021 was relatively good for ALGO. The coin started the year at $0.3981. By January 8th, it was trading at $0.4548. By January 19th, it reached $0.5235. It closed the month at $0.6638.
February saw ALGO rise dramatically. It traded at $0.845 on February 7th, and within seven days, it reached $1.4721 on Valentine's Day 2021. It experienced a sharp drop afterwards to reach $1.0986 on February 27th. The coin fluctuated in March, but by April 17th, it has reached a new high of $1.6979. It fluctuated in May again, trading for $1.5126 on May 9th before dropping significantly to finish the month at $0.9376. ALGO managed to recover in the following months and finished 2021 trading at a price $1.66.
At the time of writing this piece, ALGO was selling at $1.11, according to reliable data from Coin Market Cap. In the previous 24-hours, it has recorded a low of $1.07 and a high of $1.32.
The market capitalization of ALGO is $7 billion. This makes it the 25th ranked cryptocurrency based on market capitalization. However, the fully diluted market capitalization stood at $11 billion at the moment. You should know that the figures fluctuate constantly.
As mentioned somewhere in the beginning, the circulatory supply of ALGO at this time is 6.53B ALGO, which represents just 65% of the expected 10 billion maximum supply. However, the total supply so far is 6,970,950,991 ALGO.
Algorand Price Predictions
To have an idea of what Algo will be worth in the future, let’s look at the predictions from authority websites.
Wallet Investor is always positive about cryptocurrencies, and it has expressed high hopes for ALGO. According to its latest predictions, the Algorand coin price will rise to about $2.85 in the next 12 months. It also believes that the coin will reach $9.98 in the next five years (2027).
Digital Coin Price is conservative about the future of Algorand. It predicts that the ALGO coin can rise again to reach $1.56 by the end of this year, 2022. It forecasts a slow but steady growth for the coin in the coming years, stating that it will be worth $1.7, $2.07, $2.28, and $2.25 in 2023, 2024, 2025, and 2026, respectively. The prediction also shows that the Algorand coin will be worth around $2.81 in the next five years (2027) and rise to about $4.45 in 2029.
Long Forecast is equally positive about the future of ALGO when it comes to price performance. Its latest prediction shows the Algorand coin will close the year 2022 at $1.11. Going into 2023, they predict that the coin will gain and finish the year at $2.14. By December 2024, they predict that ALGO will be worth between $2.77 and $2.59, closing the year at $3.08.
Trading Beast makes a similar prediction about the future of ALGO – their recent forecast shows the coin finishing 2022 at an average price of $1.63. They also predict that ALGO's maximum price will be $2.12 for December 2023, $2.14 for December 2024, and $2.21 by December 2025.
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Where Will Algorand Be In The Next Ten Years?
Algorand is barely two years, so it is a little too difficult to state what will become of the network and its token in the next ten years. There is a possibility that it will become a highly valuable coin in the future, but it has not shown enough signs so far.
Judging from the performance of ALGO and what the team plans for its supply, we don't see the coin becoming very valuable. The coin will likely record-high inflation figures in the coming years, and that will keep the price down.
It is important to reiterate that the cryptocurrency universe is a bit unpredictable. A lot can happen in ten years. Algorand may be able to attract several businesses and investors, and the price of the ALGO coin can appreciate significantly. However, we need to project according to what we have at hand. And with that, there is no harm in stating that the future of ALGO doesn’t look too bright.
Why You May Want To Invest In Algorand
Regardless of what we have stated, you can decide to invest in Algorand. The platform is great, and there are still some chances that the token will become valuable and profitable for investors. Here are some of the reasons you may want to invest in Algorand (ALGO):
1. Algorand Is an Ambitious Platform
The Algorand network is very ambitious, and we all know that ambitions can push a determined entity to greater heights. The protocol seeks to achieve all the features of a great cryptocurrency platform. Achieving that can mean a lot for Algorand and its native coin, ALGO.
2. Algorand Has an Experienced and Powerful Team behind It
Algorand was launched by an experienced team, and that team has grown even stronger in just two years. The experience and resilience of the team can mean a lot for the long-term future of the coin.
3. Algorand Has the Capacity to Attract Investors and Businesses
Algorand is a decent platform that can become excellent with time. By achieving high scalability and enhanced security without sacrificing decentralization, the platform will attract more users. The high coin supply and low price will also be a good incentive for traders and investors to choose it. All these possibilities can mean a lot for the future of ALGO as a digital asset.
4. Algorand Has a Vibrant Community
The wonderful team at Algorand is supported by a vibrant community for synergy. The company behind the platform ensures that investors and followers get updates about the major milestones the team and the platforms are reaching.
Reasons To Think Twice About Investing In Algorand
If you are still sitting on the fence about investing in Algorand, it is important that you weigh your options carefully. There are a few tangible reasons to reconsider investing in Algorand, including the following:
1. Algorand Doesn’t Offer Any Special Thing to the Cryptocurrency Universe
Unlike platforms like Compound and Uniswap that offer something different from what other platforms offer, Algorand is just trying to bring efficiency to regular transactions in the cryptocurrency universe.
2. It Is a Relatively New Cryptocurrency
Algorand is a very young platform. It will likely see many more rainy days, and we are not too sure of how it can weather a serious storm.
3. ALGO Is Set For Inflation
ALGO's circulatory supply is way too high for a new cryptocurrency, and the team plans to roll out several hundreds of millions of new coins every year. This strategy will definitely bring about inflation, which will likely drive down the price of the coin.
Should You Play The Long-Term Game With Algorand?
ALGO is not a very strong cryptocurrency, though it is backed by a strong team. The coin has also shown signs of extreme volatility in its few years of featuring in crypto exchanges. Again, high supply of the coin will likely cause inflation, which will drive down the price further.
ALGO may be a decent investment option for day-traders, but it is definitely not the best option for long-term investors.