Coin Bureau Lays Out A Potential Path To ATH For Algorand (ALGO)
Coin Bureau looks into factors that could potentially push Ethereum challenger Algorand (ALGO) to a new all-time high.
In a recent video update, Coin Bureau host known as Guy, shared with the channe’s 2.04 million subscribers that smart contract platform Algorand is right not looking at several fundamental challenges including the exponential growth of ALGO’s supply in the market.
“The first one is Algorand’s apparent lack of user adoption. Almost every smart contract cryptocurrency I’ve covered recently has seen exponential growth in its user base over the last few months alone, but this exponential growth isn’t as apparent on Algorand. I reckon that this can be chalked up to the fact that the Algorand wallets used to interact with its DApps [decentralized applications] aren’t nearly as familiar or as user-friendly as other browser extension wallets like Metamask.
It also doesn’t help that ALGO’s price has consistently underperformed and that ties into the second challenge.
Algorand’s tokenomics still aren’t all that terrific, and it seems that the end of accelerated vesting for ALGO’s early investors hasn’t helped with ALGO’s price action at all. To make things worse, supply continues to hit the market. In fact, in a January presentation, the Algorand Foundation’s former CEO, Sean Lee, actually celebrated the fact that ALGO’s supply had increased from 1.4 billion to over 6.3 billion in 2021 alone.”
According to Guy, the problems are cumbersome, because there is not enough demand for ALGO.
“The main reason why there isn’t much demand for ALGO is because Algorand has focused its attention on catering to institutions and institutional investors instead of retail users and investors. As far as I can tell, Algorand has been trying to increase its institutional catering to Michelin-star levels with its overtly aggressive push to be green.”
Regardless of the challenges, the analyst expects Algorand to be geared for new all-time highs if its institutional investors strategy works out as planned.
“Algorand has quite a few things to work on, but if its focus on institutional adoption proves to be fruitful, it could create the demand ALGO needs to definitively surpass its previous all-time highs.”
