CRYPTOCIES

This Ethereum Competitor Is Growing Massively During Bear Trend


During a time when crypto is struggling, sleeper layer-1 Algorand is quietly putting together incredibly impressive growth numbers. Why? 

Covered:

  • Algorand’s Impressive Growth Numbers
  • Where Is This Growth Coming From
  • Future Growth And AlgoFi

Algorand’s Impressive Growth Numbers

In case you haven’t noticed, the crypto market has had a rough go of it of late. That was sarcasm obviously. But, earnestly speaking, I think Algorand has no idea how bad it’s been for everyone else

The layer-1 Ethereum competitor, which boasts impressive transaction speeds and negative (in a good way) environmental impact, has shown all around growth in price, DeFi, and NFTs.

The ALGO token is up a decent 6% in the last month, trading in the $0.34 cents USD range. That’s solid price action, but overall ALGO is trading inline with the rest of the market. Where the growth has been most impressive is in the DeFi space.

Algorand DeFi

Algorand DeFi, like everyone else in the space, fell hard in May thanks to the Terra UST contagion. However, as the contagion spread to Celsius, Voyager, and Three Arrows Capital, Algorand didn’t just come out unscathed, it actually grew stronger than ever.

On June 30th, Algorand TVL was in the 97 million range. By July 11th, TVL had doubled to $211 million. Today it stands a shade over $200 million.

Compare that to Ethereum’s DeFi TVL. The difference is quite obvious.

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Same with the SBF-supported Solana Chain. Its growth has been non-existent while Algo’s is exploding.

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It’s not just DeFi. Algorand is also popping off in the NFT world.

Algorand NFTs
Cryptoslam numbers from July 19th, 2022. Credit: https://www.reddit.com/user/boredguyonline/

Their overall market share in NFTs is still a pittance compared to Ethereum, but nevertheless, these are the kind of inroads a growing smart contract protocol needs.

Why is Algorand growing so rapidly?

Algorand’s Rapid Growth

One of the prevailing criticisms of Algorand has been its comparatively tepid long-term growth compared to many of its competitors. The ALGO tokens all-time high of $3.50 was back in 2019 when it first started trading. Since then its briefly hit the $2 dollar mark, but has largely languished well below its all-time high.

Comparatively, its closest competitors like Ethereum, Solana, Cardano (and Terra LOL, but that’s not as impressive looking back now) all-hit new highs during the 2020/2021 bull trend.

Moreover, Algorand recently had a bit of a dustup thanks to the revelation that it had done some business with Three Arrows Capital (3AC). Algorand Foundation entered into a token deal with 3AC back in the fall of 2021. The terms of the deal have apparently not been met resulting in a claim by the foundation.

Details are hazy. Typically token deals are done by protocols in order to prop up their ecosystems. However, the terms are always different. Vesting schedules, payment timetables, etc. all vary. Did 3AC sell too soon because of their bankruptcy? Did they not make good on financial considerations. That’s unclear.

What’s clear, though, is it’s not that big of a deal. Even if things went awry it’s ultimately a drop in the bucket. Not to mention, the recent rapid growth shows it can’t be hurting that much if at all.

In sum, the Algorand Foundation’s work appears to be very much working.

Future Growth And AlgoFi

The biggest DeFi platform on Algorand by TVL (45% dominance), AlgoFi, just announced a major partnership with Coinbase Pay. The partnership will see the payment part of Coinbase integrate with AlgoFi.

The move will significantly increase ease of use and onboarding of retail for the already rapidly growing protocol. Coinbase users now will have the option to buy Algorand with it automatically depositing into their Algorand accounts on the protocol. For your convenience, AlgoFi tweeted out a how to on the process. 

Interestingly, Algorand’s ALGO token is one of the few on offer in Coinbase’s yield product. Coinbase has opted for a much smaller cadre of cryptos and reasonable APY compared to its competitors.

ALGO is up 2% in the last hour on the news. It’s trading in the $0.35 cents range as of press time.

Recommended: This Is How Coinbase Is Going To Save Crypto Lending

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