Algorand surged over 30% amid the brief market crash. The coin recovered from the crypto slump to reach its highest price in more than two years since June 2019, when it was launched. Let’s get to the bottom of this.
How did Algorand defy the market?
This week, the major crypto markets experienced a slight crash. The most popular coins recorded double-digit losses, but later recovered.
The world’s largest cryptocurrency Bitcoin fell by over 17%. Its rival Ethereum saw a 12% drop. Dogecoin fell 17%. Coinbase slid 4.02%, Riot Blockchain fell 7.38%, and Marathon Digital Holdings dropped 7.76%.
Despite these large declines, Algorand held up well, reaching an all-time high of $1.81. It was also the only token to post positive returns among the top 15 smart contract platforms. The digital coin has continued to improve over the past 24 hours and is trading at $2.03, according to CoinDesk.
Some crypto enthusiasts are now comparing Algorand to Solana, which has been in the news recently for a price spike.
Algorand is part of the Layer One blockchain project and is considered a close competitor to Ethereum.
What led to this price spike?
Algorand has signed several commercial partnerships in various countries in Latin America in recent months. For example, in June, Spain’s first neobank Bnext partnered with Algorand to offer international remittance services in Spain and throughout Latin America.
Just this year, the crypto company partnered with the government of El Salvador.
The Algorand Foundation recently announced how ALGO’s circulating offering will be reported. In addition, it shared a new reporting metric with. It includes all ALGO tokens, not just those held by the foundation.
What does the future look like?
The ALGO token has continued to perform well. On the other hand, the tokens of other popular Layer 1 blockchains such as Ethereum, Solana, Cardano, and Polkadot have suffered sharp declines. It will be interesting to see if the price can hold up in the coming months. And how the company will expand as more investors develop an interest in Layer 1 blockchains for smart contracts.