The price loss caused an 11.22% drop in Algorand’s market cap down to $1,644,658,166 and now it sits at number 59 of the market cap ranking. However, as the prices downed, the 24-hour trading volume of Algorand soared by 38.41% to $299,714,086, placing it at 34th place according to the total trading volume. The ratio of volume to market cap for the last 24 hours is 18.97% indicating a fairly high level of trading activity.
With the circulating supply of 8,138,099,046 ALGO being 81.38% of the total supply and the maximum supply of 10,000,000,000 ALGO, Algorand’s fully diluted market capitalization is currently at $2,020,718,792.
Sarah Johnson, a blockchain analyst at CryptoAnalytics, in an interview, revealed her opinion on the situation. “It is not entirely unexpected that the value of Algorand might decline considering the prevailing market conditions,” she said. The wider crypto market has been experiencing difficulties related to uncertainties of the regulation, macroeconomic variables, and some projects that are considered to be not viable.
Johnson added, “Algorand, a relatively newer player in the space, is not immune to these market forces. However, its strong fundamentals, which include its innovative Pure Proof-of-Stake consensus mechanism and its focus on sustainability and scalability could help it overcome the current storm in the long run.”
However, John Smith, a retail investor and crypto lover, was worried due to the price decrease. “I’ve been having Algorand for a while now, and this downturn is indeed distinctively concerning”, he said. I have faith in the project’s potential; however, the market is destabilizing me.
Algorand project is a heritage encompassing the period of its establishment in 2017. Created by Silvio Micali, a famous cryptographer and Turing Award winner, Algorand’s goal was to solve the problems of scalability, security, and decentralization present in other blockchain platforms.
Ever since the mainnet was introduced in 2019, Algorand has gained ground in different sectors such as finance, supply chain management, and even gaming. Nevertheless, the current market correction did not skip Algorand either with the price of its token dropping by an astonishing 93.85% from its all-time high of $3.28 which it reached in June 2019.
Although the recent price fall, Algorand’s team is still bullish about the project. The recent statement by the Algorand Foundation was aimed at emphasizing the commitment to building innovation and bringing adoption to all industries.
With the crypto market still navigating through rough patches, investors and industry experts will be keen to see how projects such as Algorand prove themselves. The question of whether Algorand can recover and recoup its momentum still remains open; however, its underlying technology and strong community support may become a key factor in its long-term success.
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