Algorand cryptocurrency is a modern blockchain of the new generation. The technology is already called “blockchain 3.0.” It solves the most pressing problems of bitcoin scalability while maintaining security and decentralization. It is expected to improve the efficiency of the usual system of financing, and the protocol it uses will facilitate the smooth circulation of cryptocurrencies.
Algorand’s blockchain is completely decentralized. There is no powerful central authority or single point of control. Every user can participate in the consensus and make a contribution to the network’s development.
ALGO is the currency of the Algorand network, which acts as a medium of exchange and an element of storing value. Based on the Algorand blockchain, the Marshall Islands plans to create a state digital currency SOV, which will be circulating along with the U.S. dollar. This is a great event that stimulates traders to look for Algorand price prediction to understand whether it is worth investing in or not.
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Factors That Influence Algorand Price
The economic factors that affect ALGO coin price include:
- The activity of using ALGO coins in real financial transactions.
- The volume of cryptocurrency issuance.
- Average transactions per day.
The price on cryptocurrency exchanges is formed by a simple rule: the ratio of supply and demand. The more demand, i.e. buy orders, the higher the price will be. The price goes up until all buy orders are closed, that is, the demand is satisfied.
ALGO’s Price History
The coin hit the market on June 22, 2019, at $2.16 and in 10 days decreased by more than 2 times. The price continued to go down till August 1, then spiked for several weeks, and dropped again. All of this happened in less than a month.
The Algorand price continued to fall over the next year before another spike in August 2020, reaching $0.66. From then on, it began to fall and continued to fluctuate just above $0.30. A great rise in February 2021 seemed promising, but it was short-lived and the price collapsed below $1. But on September 12, 2021, Algorand reached its new ATH — $2.3795.
As of today, Algorand`s daily trading volume is $400 million on average. Experts are sure it is quite a good result for this altcoin. The market capitalization is over $10 billion, making the coin the 22nd on the list.
Algorand Price Prediction 2021
Of course, the main factor that determines the value of ALGO today is demand. But there are also other factors:
- Regulators’ attempts to find tools to establish oversight of the cryptocurrency market (cloud services are located on servers in different countries, and the anonymity of digital money complicates the process. A number of countries (Iceland, China) are trying to ban crypto).
- Conducting forks and technological events that lead to both ups and downs.
- Problems of cryptocurrency exchanges related to regulation or security (hacks) and lack of reputable liquidity providers.
- Strong correlation of bitcoin and the major altcoins (ETH, BNB, SOL) to other altcoins.
- Trader interest.
ALGO has a huge number of daily transactions, meaning that it is interesting to cryptocurrency enthusiasts. Despite price declines, the last year shows steady growth in the coin’s value. Many experts believe in ALGO’s long-term growth potential.
Future Price of Algorand (ALGO) in 2022-2025
The price of ALGO will rise this year from today`s price of $1.93. It is expected to be $2.1 by the end of 2021 (according to TrandingBeasts). The service also believes that ALGO will cost approximately $1.9 in 2022-2025. It looks like the asset will be pretty stable, without significant returns to investors.
WalletInvestor thinks that the price will range from $1.6 to $3 in one year. In 2025, ALGO can potentially reach $7, which is a great growth trajectory.
Will Algorand Go Up?
The value of the cryptocurrency Algorand currently stands at $1.6. Over the past 24 hours, the price has fallen by 5%. It ranks 22nd by market cap, which is a significant achievement for such a young coin. Analysts consider it promising for long-term investments, as it is expected to bring more than 300% returns by 2025.
