Algorand Just Surged To All-Time Highs, What’s Behind The Rally?
Algorand (ALGO) rallied into new all-time highs earlier today. Institutional investment, new governance features and a groundbreaking project with the government of El Salvador are just a few of the factors behind ALGO’s rally.
There is one thing that matters most when it comes to being a successful blockchain project – real-world adoption. Algorand is definitely one project that has benefited from a recent uptick in adoption. Algorand is a pure proof-of-stake protocol aiming to become the go-to base layer for the global financial industry.
According to CoinMarketCap data, since bottoming out at $0.67 on July 20, the price of ALGO has rocketed 268% higher to a daily high at $2.47 on September 9 as its 24-hour trading volume surged to a record-high $4.83 billion.
El Salvador news effect on Algorand
The sudden surge in price and trading volume for Algorand happened following El Salvador’s Bitcoin Law adoption announcement, and that the country has also selected Algorand’s blockchain to help develop its blockchain infrastructure.
The Algorand network has slowly gained increased attention from larger institutions and governments as a result of its work on central bank digital currencies (CBDC) and the project has already been chosen to host popular stablecoins like USD Coin (USDC) and Tether (USDT).
Its selection by El Salvador is perhaps the most significant vote of confidence the project has ever received, and it has could easily lead to further large-scale adoption as other governments and institutions are closely watchng how the project progresses.
NFTs, DeFi and governance new user attraction?
Another factor that helps driving up the price of ALGO are recent moves made by the Algorand Foundation to get the community more involved with the project and being active on the network.
The project is in the process of launching governance features for token holders, which are planned to go live on October 1 and will give users more of a say in the future development of the platform.
The project developers are also working on new decentralized finance (DeFi) and non-fungible token (NFT) applications that could attract more new users who want to get in on the NFT action but haven’t because of the high fees on the Ethereum network.
