Algorand investors may need to lower expectations despite ALGO’s 4x surge
It’s raining new users for the Algorand [ALGO] chain following its partnership with FIFA. Recall that the world governing body and the DeFi blockchain had agreed to collaborate on the idea centered around digital collectibles.
Now, Algorand has made its promise true. As of 22 September, Algorand announced that it was launching the “FIFA Plus Connect” NFT collection. According to the ALGO team, the collection would allow fans to possess exciting football moments as NFTs.
NOW LIVE: @FIFAcom makes digital history with the launch of @FIFAPlusCollect powered by #Algorand! Fans around the world will now have the opportunity to affordably own the greatest moments in football ? https://t.co/2Pk9NdBGB5 pic.twitter.com/uN5k2hfBeu
— Algorand (@Algorand) September 22, 2022
Double + Double equals?
With the development, ALGO considered it a time to pursue new milestones. According to IntoTheBlock, ALGO’s active addresses had significantly improved. However, the notable part was that most new addresses had quadrupled their daily transactions in about three months.
The active address transactions were not the only ones affected by the update. The price, too, adopted a positive effect. At press time, ALGO was trading at $0.3855 in the last 24 hours, according to CoinMarketCap. This was the second day in a row that ALGO had maintained a green outlook, especially after activating the “State Proofs” stage.
Despite the landmark, ALGO had not done much in development activity. On-chain platform, Santiment reported that the development activity on the chain was at its lowest for a while.
In contrast, the NFT launch had spiked a massive interest in ALGO. Santiment data showed that social dominance was at its highest since May. Coincidentally, it was around the same time that the partnership was announced that represented the last highest point.
Gold, but not all glitters?
As ALGO has continued to be the “cheerful giver” of late, traders seemed to have taken advantage. According to Coinglass, the futures open interest rate in the coin had been rising in the last 24 hours across the top crypto exchanges.
Similarly, the perpetual-futures market recorded over 50% activity across the same exchanges. Despite that, it wasn’t all sweet nor sour as liquidations ravaged a sizable number of ALGO traders.
Based on Coinglass data, over $2 million has been liquidated in the last 24 hours. As expected, short-traders were the ones who paid the price. While long liquidations accounted for $193,620; short were liquidated about $826,560. Compared to previous months, these short liquidations were incredibly more than normal.
Despite the market producing profits, ALGO investors may need to slow down on expectations. While anything could happen, there was no clear sign that the green would continue till the end of the third day.