The Algorand price made a bullish breakout on Friday as investors cheered the strength of the blockchain platform. ALGO soared to a multi-week high of $2.30, bringing its month-to-date performance to more than 30%. This means that the token has a total market capitalization of more than $13.2 billion.
Algorand ecosystem growth
Algorand is an Ethereum-killer that prides itself for speed and its green credentials. In April this year, the developers pledged to make Algorand the greenest blockchain platform in the world. It has also become carbon neutral already.
Algorand uses a consensus known as Pixel, which is basically a modified version of proof-of-stake. Pixel is a more scalable version of proof-of-stake, which is made up of a pared-based forward-secure multi-signature scheme. This helps to reduce the overall bandwidth, storage requirements, and storage requirements.
This model helps Algorand have a relatively fast transaction time, lower cost, and more efficient platform. Today, the platform is widely used in the blockchain ecosystem. For example, it is used by IDEX, a world-leading smart contract exchange that supports fast trading and high throughput. It is also used by companies like Circle, Republic, and tinyman.
And this week, the company announced that it will partner with Waitr, which is launching an ESG-oriented blockchain for commodities. Waitr Foundation, a newly formed non-profit, launched the Waitr Protocol that will seek to digitize supply chains and improve transparency. More companies are expected to launch their projects on Algorand.
Still, Algorand faces a major challenge ahead. The biggest one is that its industry is highly competitive. For now, the industry is dominated by Ethereum, a leading platform that powers more than 95% of all DeFi platforms. There are also other Ethereum-killers like Solana and Avalanche that Algorand will need to contend with.
Algorand price prediction
The four-hour chart shows that the Algorand price has been in a tight range recently. Most importantly, the coin has struggled to move above the key resistance at $2.08 several times since October. Therefore, it was an important achievement when the coin managed to move above this level today. It was the upper side of the rising triangle pattern.
Algorand has also moved above the 50-day and 100-day moving averages. Therefore, after this bullish breakout, I suspect that the coin will keep rising as bulls target its September high of $2.55, which is about 20% above the current level.
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