The crypto market witnessed a significant setback lately through the down thrown of Algorand (ALGO) which is a famous blockchain platform that is optimized for reliable and effective transactions. The last 2 weeks have seen a very steep price decline for ALGO, crashing 23.58%, and investors are all over the news, and all of the famous business analysts are trying to figure out the cause of this sudden plunge.
Algorand’s privilege was by no means a sign of tranquility as the technology partnerships with the giant financial institutions and the success of the network’s pure proof-of-stake consensus protocol were all novel milestones. However, fees are likely to grow more expensive in the near future and emerging regulations may well stifle the project’s progress.
To get inside about this disquieting trend we interviewed Silvio Micali, a supporter of the Algorand and an integral cryptographer. “Technology Algorand may cut the mold in secure as well as scalable blockchain solutions”, according to Micali. “The current low price of cryptocurrencies has attracted my attention, and I’m fairly sure it is a momentary hiccup in the long run caused by some broader concerns and the unclarity surrounding the cryptocurrencies’ regulation.”
Micali claimed that the response to such issues should start first by admitting their existence. “The Algorand team goes on abiding by innovation as well as extensive collaboration with regulators in an attempt to achieve compliance along with the intactness of the platform.”
On the one hand, Emily Thompson, an Algorand investor & crytpofan, was amazed at the price drop. Thompson, an Algorand observer, praised the latter network for “top-notch technological achievements” saying, “I have been closely following Algorand and really admire them for their amazing tech advancements”. “Besides the recent price weak point which is something to be worried about, I am still hopeful for the project’s long-term potential apropos to the superb partnership it posses and the blockchain solutions which are widespread in various industries.”
As mentioned by CoinGecko, a reliable cryptocurrency data aggregator, after a sudden drop, the market cap of Algorand is now at US $1 654 435 320. It is ranked at the 60th position of all cryptocurrencies in terms of market cap. The 24-hour volume of the day is at $189,515,210, indicating a growth of 69.31% as compared to the volume of previous day, which should have resulted in some changes in investors’ decisions.
Some of this price fall can be due to the recent information about the regulatory scrutiny of the crypto area and the worries connected to the state’s entire financial condition. Nevertheless, we must not exclude the point that Algorand’s fundamentals and partnerships are everlasting and potentially being reached if the team starts addressing these challenges decisively.
Going forward, cryptocurrency projects, including Algorand, have to stay alert and respond adequately or even anticipatory to the changes in the market and the regulatory environment. Investors are required to be careful in using their diligence before making any decision on the investment.
