Algorand (ALGO) investors are acting incomprehensibly… Because ALGO holders are investing in the cryptocurrency, even though investors of other altcoins have withdrawn and the altcoin project has suffered huge drops.
Will the price of Algorand (ALGO) rise?
Altcoin project was last at its current price level 16 months ago in February 2021. Algorand (ALGO) is somehow attracting more investors, according to on-chain data. In fact, the network registered more than 1.1 million new addresses in the last week alone. This is a huge rebound for Algorand as the network lost 10.6 million investors, even though they were all new investors. This represents 65 percent of all ALGO addresses. In the same time period, activity on the network also increased. For example, from May 2 to May 8, more than 350 thousand investors actively participated in the chain. That’s an increase of 1,160 percent from the average 28,000 that suddenly disappeared during the market crash.
During the great crash, ALGO collapsed along with the rest of the cryptocurrency market. Here this altcoin has lost almost 52 percent of its value. However, the wind seems to be turning. Investors also expect more progressive gains in the next few weeks. Currently, more than 60,000 addresses are active on the chain and there has been a similar increase since the end of May. Not only that, their owners are also actively accumulating as many ALGOs as possible. The asset’s buy order exceeded the sell order by a margin of 2 million ALGO (equivalent to $600,000).
Bitcoin’s possible price loss will also negatively affect altcoin projects
Investors are probably waiting for ALGO price to recover and make up for losses in May. It is even possible that many are waiting for the altcoin project to return to $0.74. This is only possible with ALGO pointing to a recovery of around 92 percent… However, its high correlation of 0.89 with Bitcoin may hinder this rally. As we have reported as Kriptokoin.com, because if BTC continues to drop, it will drag Algorand along with it, just like other altcoin projects. And if this negativity is experienced, the hopes of the investors will also be exhausted.
ALGO is the native Algorand altcoin project and is known as the lock of the network structure. As part of Algorand’s unique protocol design, the rewards paid to validators for producing blocks are split and distributed among all ALGO token holders rather than being awarded to block producers alone. This means that all ALGO token holders can earn approximately 7.5 percent annual percent yield (Annual Percentage Yield) by February 2021.
