The Algorand (ALGO) project has already made a name for itself with institutions and governments because of its various features. It has recently reached a new ATH of almost $2.5. It seems that the project is enjoying exceptional momentum.
ALGO in great shape: why?
With few exceptions, real-world adoption is what matters most when it comes to a blockchain project. Algorand (ALGO) is a scalable, secure and decentralized transaction platform aiming to become a reference for the global financial system. Lately, the ALGO token has been in great shape, with its value literally increasing by almost 3 times in a few days.
Several factors seem to explain this staggering rise:
- The increase in the number of institutional investors;
- The new governance feature;
- A major partnership with the government of El Salvador.
Since the low of $0.67 on July 20, the price of ALGO has climbed 268% to a high of $2.47 on September 9, while its 24-hour trading volume reached a record $4.83 billion.
El Salvador pushes project…
Algorand’s sudden rise in price and exchange volume came after El Salvador announced that it had requested its help in developing its own blockchain infrastructure.
The Algorand network has slowly been attracting the attention of large institutions and governments due to its work on central bank digital currencies (CBDs). In addition, the project has been chosen to host stabecoins, such as the USDC and USDT.
El Salvador’s selection of Algorand is perhaps the most important vote of confidence the project has received to date, which may lead to widespread adoption as other governments and institutions watch (from afar) the project’s progress.
…in the company of NFT and DeFi
The Algorand Foundation’s Twitter announcement also contributed to the cryptocurrency’s rising price.
“Starting October 1, the Algorand ecosystem will move to a decentralized governance model. Join our CEO, SeanLee, our researcher Shai Halevi and our chief economist, Massimo Morini, for our upcoming ‘Community Governance is Here’ event.”
The project is in the process of launching governance features for token holders, which are expected to go live, on October 1, and would give users more say in decisions about the platform’s development.
The project’s developers are also working on new dApps for DeFi and NFTs, which could attract new users looking to capitalize on the NFT craze by avoiding exorbitant fees on the Ethereum network.
Algorand (ALGO) was born in 2019 and is slowly but surely making progress in the eyes of investors around the world. The beautiful recognition of El Salvador, which has made Bitcoin its legal tender, has paid off for the project, which plans to capitalize on it.
