In the past few months, cryptocurrencies have become a frequent topic of discussion among mainstream media and traditional investors in part because of Bitcoin’s preaching to well-known influencers like Elon Musk, Mark Cuban, and Michael Saylor.
One platform that has benefited from the growing interest in the cryptocurrency sector is Algorand (ALGO), a scalable, secure, and decentralized digital currency platform.
Since the start of 2021, the price of ALGO has grown steadily from $ 0.33 on January 1 to $ 1.84 on February 12, the highest level since July 2019. Its trading volume also increased from $ 70 million to $ 1.1 billion during the same period.
VORTECS ™ data from Cointelegraph Markets Pro began spotting bullish forecasts for ALGO in late February 9 (ET) that preceded a short fall and was followed by a sharp price spike.
As shown in the ALGO / USDT chart above, the ALGO price fell again to retest the $ 0.84 support after the heavy volume rally pushed the price from $ 0.77 to $ 0.95. Once a retest of key support was confirmed, ALGO resumed its uptrend and rose to a new 2021 high of $ 1.84 on February 12th.
At 10 pm on February 10, the VORTECS ™ score reached a peak of 74, coinciding with the ALGO price hike from $ 1.08 to its 2021 high of $ 1.84.
The VORTECS ™ score, exclusive to Cointelegraph, is a mathematical comparison of historical and current market conditions drawn from a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.
Three reasons for the increased interest in Algorand are its ability as a stablecoin platform as it is increasingly integrated into traditional financial channels, its expansion into DeFi through partnerships and the creation of a DApp, and the ability to earn revenue by simply holding tokens in the network’s pocketbook.
The use of stablecoins increases
Stable currencies have become a widely discussed topic among regulators and conventional finance after Facebook unveiled its Libra project in 2019.
In early January 2020, the US Treasury Department’s Office of the Comptroller of the Currency announced that national banks would be allowed to operate independent contract for distributed ledger networks and to conduct transactions with the various stable currencies operating on these networks.
Algorand was previously chosen by Circle as one of the platforms to host the USDC stable, and the Marshall Islands chose the network for its national digital currency.
The protocol’s pure proof-of-stake consensus mechanism allows all wallets to participate in block verification, helping to increase network security and transaction-per-second capabilities.
Recently, higher gas fees on Ethereum have left stable coin issuers and DeFi traders looking for viable alternatives and Algorand is quickly emerging as a prime candidate. Likewise, central banks from around the world have begun analyzing the blockchain network they are integrating their digital currency (CBDC) with, and Algorand has made it shortlisted for viable competitors.
Algorand enters DeFi
Decentralized finance is fast becoming one of the main driving forces behind the continued growth of the cryptocurrency sector, and Algorand stands ready to take full advantage of its development.
Several recent high-profile partnerships point to Algorand’s growing aspirations within the DeFi and fintech space.
Instimatch Global, a digital platform for institutional trading in the short-term money market, Partnership with Algorand In early January, now a large portion of the millions of dollars of transactions you make every quarter will pass through the Algorand network.
Other notable partners include border, String Neutral DeFi Aggregation Layer that received a grant from Algorand to develop the Algo DeFi ecosystem, and luxurious, “The first-ever decentralized financing offering (DeFi) backed by music as an asset class.”
Crypto Asset Security platform Curv has also joined Algorand and will integrate the network into the asset-neutral technology infrastructure, while Algorand will benefit from Curv’s custody solutions.
ALGO staking creates buying pressure
Another reason for Algorand’s continued growth is the simplicity of staying online. ALGO holders can easily share their tokens on the network and earn 7.19% by simply keeping tokens in Algorand Wallet.
Only 1 ALGO is needed to start earning, and currently 2.33 billion ALGO, or 59.5% of the circulating supply, is mortgaged on the network.
As blockchain technology and cryptocurrencies continue to gain widespread acceptance and adoption, networks capable of handling the increased transaction loads will be needed in order to efficiently bring new users into the crypto ecosystem.
Algorand’s rapidly expanding DeFi infrastructure, and a growing list of partnerships and potential choice to support CBDCs, show that the project has strong fundamentals.
Moreover, the ability to easily earn a 7% return while also helping to keep the network secure can attract new investors and increase buying pressure on ALGO.
The opinions and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risks, you must do your research when making a decision.