Million subscriber Youtube analyst explains the next developments that will bring an Ethereum-challenging altcoin project to ATH levels.
Coin Bureau analyst announced ATH catalysts for Algorand (ALGO)
In a new video, the host of popular YouTube crypto channel Coin Bureau has reached 2.04 million subscribers of smart contract platform Algorand. says it currently faces a number of key challenges, including the exponential growth of the ALGO supply on the market:
The first is Algorand’s blatant lack of user adoption. Almost every smart contract cryptocurrency I’ve dealt with recently has seen exponential growth in its user base in just the last few months, but this exponential growth isn’t all that noticeable in Algorand. I think this can be attributed to the fact that Algorand wallets whose DApps interact with [decentralized apps] are not as familiar or user friendly as other browser extension wallets like Metamask.
The analyst also says that ALGO price has consistently underperformed, which is linked to the second challenge. Analyst thinks Algorand’s tokeneconomy is inadequate:
Algorand’s tokenomics are still not that great, and for ALGO’s early investors, the end of expedited vesting hasn’t helped ALGO’s price action at all. To make matters worse, supply continues to hit the market. In fact, Sean Lee, former CEO of the Algorand Foundation, celebrated in a January presentation the fact that ALGO’s supply has grown from 1.4 billion to over 6.3 billion in 2021 alone.
Insufficient interest in altcoin project
Analyst also says problems are worsened as there is not enough demand for ALGO:
Too much demand for ALGO The main reason why Algorand is not is because Algorand has focused its attention on appealing to institutions and institutional investors rather than individual users and investors. As far as I can tell, Algorand is trying to elevate its corporate catering to Michelin star levels in its overly aggressive effort to be green.
Despite these issues, the crypto analyst says the smart contract platform could set new records if its strategy of focusing on institutional investors succeeds.
Algorand has a few things to work on, but if its focus on enterprise adoption is fruitful, it could create the demand ALGO needs to definitively surpass previous all-time highs.
