Algorand's Native Cryptocurrency ALGO Skyrocketing, Aims to Challenge Ethereum in DApps, DeFi, and NFT Fields

Algorand's Native Cryptocurrency ALGO Skyrocketing, Aims to Challenge Ethereum in DApps, DeFi, and NFT Fields

Recently, more and more smart contract blockchains are targeting Ethereum's dominant position in decentralized applications (DApps), decentralized finance (DeFi), and NFT fields. One of these projects is Algorand, whose native cryptocurrency ALGO is skyrocketing, with a similar trend to Solana (SOL).

According to CoinGecko data, ALGO reached $2.44 on September 10, more than double the $1.2 seen on Wednesday (8th), currently trading slightly down to $2.3. As of writing, Algorand has surged 98% this week and 168% in the past 30 days.

Algorand aims to be a fast, scalable system capable of being used for DApp and DeFi protocols, allowing users to trade, borrow, and lend cryptocurrency assets without third-party intermediaries.

Some factors that may explain Algorand's recent surge include an agreement between financial services company Koibanx and the government of El Salvador to develop the country's blockchain infrastructure on Algorand, as well as Koibanx choosing Algorand as the underlying technology for its blockchain-based infrastructure and services.

Overall, Algorand is another interesting blockchain project to watch as it strives to challenge Ethereum's supremacy in the rapidly growing DApps, DeFi, and NFT fields.

Algorand: A Rising Competitor in Blockchain

Algorand is rapidly emerging as a competitor in the blockchain and cryptocurrency markets. As Ethereum continues to struggle with high transaction fees, Algorand offers a viable alternative with lower fees and potential for price growth.

Financial Services and COVID-19 Tracking

Algorand provides numerous facilities, including financial service platforms and systems to track the COVID-19 pandemic.

Competing Against Solana

Solana, another blockchain platform, has been a driving force behind the increasing value of cryptocurrencies. Solana’s cryptocurrency, SOL, skyrocketed last month from $37 to $213. Solana is considered a major competitor to Ethereum due to its low transaction fees and ability to handle larger transactions at any time.

Growing DeFi Usage

Algorand’s DeFi usage is also growing. According to data from DeFi Llama, Algorand currently has about $9 million worth of cryptocurrency assets locked in its DeFi smart contracts. The total amount of ALGO locked in these protocols has increased by 53% since last month.

NFT Collections on Solana

NFTs (non-fungible tokens) are becoming increasingly popular, and Solana is quickly emerging as a new hub for NFT collections. Popular collections like Degenerate Ape Academy and Aurory have recently emerged as NFT projects on the Solana platform, generating transactions worth tens of millions of dollars.

Future of NFTs on Algorand?

As trading NFTs on Ethereum continues to require high transaction fees, more NFTs are moving to competitor platforms like Solana. Algorand has yet to experience a similar situation, but Solana’s early success with NFT collections may provide future guidance for Algorand.

Conclusion

Stephen Duignan, the head of marketing for Algorand’s fund, has said that Algorand has made significant strides in NFT and decentralized finance this year. With growing DeFi usage, a focus on COVID-19 tracking, and potential for NFT growth, Algorand is quickly becoming a formidable competitor in the world of blockchain and cryptocurrency.

Algorand Ecosystem Attracts Over $500 Million in Just Half a Year

In just the first half of the year, over $500 million has entered the Algorand ecosystem. Apart from the rise of ALGO, other smaller currencies have also been surging.

For instance, the decentralized search protocol Presearch has seen a 61.3% surge in the past 24 hours. This reflects investors' optimism in its recent addition as a search engine option on Android phones.

Another example is Frontier, which has seen a 55% price surge in the past 24 hours. This is a DeFi aggregator that supports many blockchains, including Ethereum, Binance Smart Contracts, and Harmony.

Investors are evidently betting big on the future of blockchain-based technologies, as evidenced by the significant investments being made in these emerging platforms.