Algorand Registers Significant Gains Amid Crypto Winter￼
The crypto market is presently going through another round of downward movement except for a few coins like Algorand. Prices of cryptocurrencies are drastically dropping as macroeconomic factors set the pace. With the bearish trend, the primary crypto asset has crashed from its crucial support levels.
Following the meeting of the FOMC on Wednesday, September 21, the US Federal Reserve settled its approach to controlling the rising inflation. Its decision led to the hike of the interest rates by 75 basis points.
With the increase in the rates, the prices of crypto assets in the crypto market are depleting. As a result, the bears gradually take over as the price crash expands. However, the native token of Algorand has distinguished itself from the prevailing trend as it beats the price crash.
Algorand Defiles the Bearish Sentiment
While other assets are under selling pressure due to the bearish sentiment, ALGO displayed more positive strength. The price of ALGO is trading at $0.3816 at the time of writing. This shows about a significant gain.
Surprisingly, ALGO had increased by more than 20% over the past seven days. This remarkable feat from Algorand came through the blockchain’s performance which recorded up to 6,000 TPS. The value exceeds that of MasterCard, which boasts 5,000 TPS.
Other tokens in the market are far behind Algorand’s outstanding performance. BTC also tanked but managed to sustain. Ethereum dropped by over but is now trending sideways. Its post-merge performance is far below expectation. ETH dipped by more than 20% after it transitioned to PoS. At the press time, Ether is trading around $1,323.
Comparing Algorand’s price increase and Ethereum pot-merge performance gives a sharp contrast. While ALGO gained by 20%, ETH dipped by 20% after the Merge.
Reasons For ALGO High Performance
Algorand is developed as a blockchain protocol with a proof-of-stake consensus mechanism. The project team boasts of the protocol void of trilemma issues, making Algorand achieve decentralization, scalability, and security with ease. Moreover, it parades its major strength as environmental sustainability.
Speed has been a more selling point for Algorand. It claimed that the network could perform up to 6,000 TPS. This record surpasses the functionality of MasterCard, which handles about 5,000 TPS. With its speed, the Algorand blockchain takes just 3.7 seconds to hit finality and block production.
The protocol just added another technical success to its stance in the crypto space. The Algorand blockchain included State Proofs on its platform. This addition will enable Algorand to digitally sign messages in a more decentralized approach.
Reacting to the new move, Algorand’s co-founder, Silvio Micali, stated the importance of having state proofs. He noted that it would enhance the safety of the blockchain against quantum attacks. Also, Micali acknowledged that the guarantees provide decentralized bridges with other chains.