Algorand was created to solve the issue of slow transactions provided by the early giant blockchains Bitcoin and Ethereum and those that followed in their footsteps as well.
Its native token ALGO runs on the pure proof-of-stake consensus algorithm and is completely environment-friendly, unlike Bitcoin, Litecoin and multiple other coins that were created to operate on the proof-of-work mechanism.
ALGO is the holder of the 58th position on CoinMarketCap with a market capitalization totalling $1,863,766,477. It is one of the most promising cryptocurrencies that traders keep a watchful eye on.
Algorand (ALGO) as major Ethereum rival
The decentralized network of Algorand was designed to solve three main problems faced by the early generation of cryptos – reaching a high transaction speed, security and adding decentralization to that to make these three crucial elements work smoothly together.
Algorand was founded in 2019 by Silvio Micali. He is a professor of computer science at MIT and the creator of the Algorand Foundation. In his earlier years, Micali received the Turing Award (2012) to celebrate his grand contributions in the sphere of secure two-party computation, e-cash, as well as blockchain protocols and cryptocurrencies. Thus Algorand is lucky to have one of the most sophisticated cryptocurrency experts for a founder.
The Initial Coin Offering (ICO) took place in June 2019 when ALGO was sold at Algorand price prediction of $0.24. $122,400,000 was raised during that distribution.
The ALGO price prediction supply was fixed by its creators at 10 billion coins. 3 billion coins are planned to be sent into circulation within five years after launch, including the 25 million ALGO that were sold during the ICO. Around 1.25 billion coins are distributed gradually as rewards for Participation Nodes.
2.5 billion ALGO is being gradually distributed to Relay Nodes. 2.5 billion ALGO has been put away in reserve for the needs of the Algorand Foundation and Algorand Inc. Finally, 0.25 billion has been set aside for end user grants.
Algorand was founded as a network with the main focus on cryptocurrency payments, which can handle more than 1,000 transactions per second and gets every transfer verified within less than five seconds.
As you can see, it is quite capable of meeting the high throughput needs for transactions in the contemporary busy and competitive digital environment. Besides, it easily handles the hosting of numerous decentralized applications (dapps) to allow developers to build them on top of Algorand and it provides the necessary degree of scalability for this. This has come in handy since traders in the sphere of decentralized finance (DeFi) are constantly looking for worthy alternatives to Ethereum and many have turned to Algorand as a chain to build their dapps and DeFi applications on.
Algorand Standard Asset (ASA) system
The Algorand chain operates in such a manner that it allows third party developers to launch new tokens atop it or, alternatively, to run existing tokens on the Algorand blockchain. Creating new assets on Algorand is done via ASA – Algorand Standard Asset. A good example here would be USD-backed stablecoins USDT and USDC that run on it as ASAs. They have much more to offer their users on this network, such as a bigger throughput and smaller gas fees compared to those charged on Ethereum.
Besides, as more and more central banks start to launch their own centralized digital currencies (CBDCs), one of them has already picked Algorand as a basis for this – the central bank of the Marshall Islands.
ASA represents the base layer of Algorand’s two-tiered structure. This is similar to how the ERC-20 standard is used on Ethereum as the basis for new coins. Smart contracts can also run on Algorand – they are executed on the Layer-1 Algorand Smart Contracts (ASC1s) system and these contracts are as secured as the protocol itself.
Layer-2 on Algorand is used for building and running more complicated smart contracts, as well as for developing dapps. Besides, the bifurcation of the network is the very factor that makes Algorand so efficient when it comes to processing transactions – since more complicated smart contracts are executed off-chain, regular transactions on layer 1 are processed more seamlessly with no congestion that Ethereum and now also Solana chains are well famous for.
Algorand price prediction
ALGO reached its all-time high back in the year of its launch – 2019, on July 21, skyrocketing to the $3.28 level unbeaten ever since. The coin is currently sitting at $0.2261, which is more than 93% below the ATH.
During the bull run in September 2021, ALGO managed to reach a peak of $2.3811. Multiple analysts and altcoin experts believe that this year Algorand is capable of reaching an average ALGO price prediction of $0.32 and the maximum Algorand price prediction of $0.5.
In 2025, according to multiple forecasts, ALGO has high odds of spiking to $0.65. 2026 may see the coin soaring to $0.734 and finally in 2027 ALGO might be targeting the $1 ALGO price mark and even venturing above it.
