Connect with us
Active Currencies 13823
Market Cap $2,756,029,462,490.27
Bitcoin Share 50.57%
24h Market Cap Change $-0.83

Will Algorand’s decentralization stimulant drive ALGO to achieve new highs

2min Read

Share this article

Algorand [ALGO], as of 22 September, was able to outperform most of the cryptocurrencies thanks to the recent “State Proofs” activation. At press time, ALGO was 12.74% up as it rallied to $0.3578 per CoinMarketCap data.

Interestingly, the price was not the only area that was affected. The price tracking platform showed that ALGO had also witnessed a surge in volume, recording a 45.26% uptick in the last 24 hours. Beyond the price, how exactly did this development affect the ALGO ecosystem?

No interference, only decentralization

While making the announcement, ALGO’s founder noted that the State Proofs would enable ALGO link with bridges without any intermediaries.

The founder also stated that State Proofs were extremely helpful. He added that the new integration would assist in preventing Algorand from quantum attacks in the Medium post attached.

These attacks are strikes aimed at disrupting public-key cryptosystems. Overall, the proof would allow the ALGO community to own digital signatures that are publicly verifiable.

In light of the news, certain on-chain metrics of the ALGO chain began to react. While the development activity dropped further, the NFTs metrics preferred the other route. According to Santiment, ALGO’s NFT trade volume increased from $186,000 on 21 September to $606,000 at press time.

Source: Santiment

Additionally, as for the whale supply percentage, there were no positives to pick up from it. However, further indications proved that the ALGO community may have taken its NFT parts seriously.

NFTs that were worth more than $100,000 had no activity between 19 and 20 September. But as of the period of the State Proofs addition, transactions increased to $346,000. 

Source: Santiment

Will the fire keep burning?

Now that the creator economy token stood in the greens, will it remain so over the next few days? Well, the Relative Strength Index (RSI) showed that ALGO’s momentum was still on the rise.

At the time of this writing, it was heading towards the overbought level at 69.48. If it increases further, there could be a reversal, which in turn could affect the price.

While assessing the Exponential Moving Average (EMA), it was observed that the price increase could last longer. Based on the four-hour chart, the 20 EMA (blue) was maintaining a solid stance over the 50 EMA (yellow). With the position, it is possible that investors may have the chance to take more profits.

Source: TradingView

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.