Algorand recorded a surge of over 30% amid the brief market crash. The coin recovered from the crypto plunge, hitting its highest price in more than two years since June 2019, when it was launched. Let’s explore the reasons for this in detail.
How did Algorand defy the market?
This week, major crypto markets experienced a slight tumble, seeing the most popular digital assets register double-digit losses and a mini recovery later.
World’s largest cryptocurrency, Bitcoin, sunk over 17%, with its rival Ethereum recording a 12% drop. Dogecoin was down 17%. Coinbase slid 4.02%, Riot Blockchain dropped 7.38%, and Marathon Digital Holdings slipped 7.76%.
Despite these major declines, Algorand held up and hit an all-time high of $1.81. It was also the only token that recorded positive returns among the top 15 smart-contract platforms. The digital coin has continued to improve over the past 24 hours, trading at $2.03, according to CoinDesk data.
Just this year, the crypto company secured a partnership with the El Salvador government.
The Algorand Foundation recently announced how the circulating supply of ALGO is reported. In addition, it shared a new reporting metric that will now include unrestricted ALGO not held directly by the Foundation.
What does the future look like?
The ALGO token has continued to perform well. On the other hand, tokens of other popular layer 1 blockchains like 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 smart-contract-enabled layer 1 blockchains.
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