- No ALGO holder was in profit at the token’s press time price.
- The whales’ actions seemed like ALGO’S decline offered an accumulation opportunity.
Every single Algorand [ALGO] holder was at a loss, according to data shared by IntoTheBlock. For a project that has been pursuing partnerships and expanding its ecosystem, the condition of its native cryptocurrency calls for concern.
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Is there any solution to the catastrophe?
This unfortunate circumstance implies that all of its current holders acquired ALGO at a price higher than its current value. So, it is no surprise that the token faced declining interest as only 2% of holders bought it in the last 30 days.
Source: IntoTheBlock
The token, which was 70.35% down in the last 365 days, and 96.53% from its All-Time High (ATH) was subject to challenges in recent times. In April, the U.S. Securities and Exchange Commission (SEC) labeled ALGO unregistered security as it has done with other cryptocurrencies lately.
And despite a video of Chairman Gary Gesler surfacing where he called the project a ‘great technology”, the SEC’s stance did not change.
While it was true that the price of Algorand experienced a decline, some 0ther metrics were worse off.
For instance, the number of transactions on a Year-To-Date (YTD) basis decreased by 58.73%. And it has been discouraging that over 92% of the transactions were smaller than $1.
Committed developers, watching whales, and the risk of…
While it might be important to look beyond the surface and consider various factors affecting the market, ALGO’s volume has been increasing since 5 June. At press time, Santiment showed the volume reached 45.14 million.
Typically, the volume shows the amount of aggregate token transactions on a network within an interval. But in ALGO’s case, the hike could be linked to increased sell-offs considering the token performance in the last few days.
Source: Santiment
However, Algorand, which describes itself as the convergence between traditional and decentralized finance, had a few positives. Based on on-chain data, the project’s development activity was higher than it was when the year began.
These efforts could be linked to the dedication of developers to ensure continuous polishing of the Algorand network.
Read Algorand’s [ALGO] Price Prediction 2023-2024
Although the project has not excelled in attracting new participants, whales have significantly increased their holdings since January. As of this writing, the stablecoin total supply held by whales reached 53.84.
Source: Santiment
Perhaps further accumulation by these deep-pocket investors could take ALGO out of its misery. At the same, the impact on the price action does not depend on whale involvement alone.
