- ALGO crypto did not rise as high as Solana last year, but it was still profitable
- In 2022 so far, the price is down, but this is the case with almost every cryptocurrency
- Tinyman, a DeFi on Algorand network, suffered an attack earlier this year
The cryptocurrency investment world is under pressure. All major cryptos are widening their losses on fears of upcoming rate hikes by the Fed and murmurs around their unjustifiably high valuations.
In this light, how might the promising blockchain networks including Ethereum, Solana and Algorand behave in the near-to-medium term? Is there a chance for reversal of fortune?
Let’s see whether Algorand’s ALGO token can rebound.
Algorand price in 2021
The so-called Ethereum-killer cryptocurrency, ALGO did not have a great year in 2021. Another Ether rival Solana rose more than 10,000 per cent in the same year.
Though ALGO wasn’t the best performing crypto, it still managed to go from nearly US$0.4 on January 1, 2021 to nearly US$1.6 by the end of the year. What could have supported this rally is the promise that Algorand can make blockchain transactions speedier and more efficient.
But the same promises are also the biggest USPs of other networks like Cardano and Solana.
Algorand price in 2022
In 2022 so far, there are two ways to look at ALGO price. From US$1.6, the price is down to US$0.9 as of now, but over the past 24 hours, Algorand trading volume is up by almost 25 per cent.
Algorand price prediction
There have been two recent developments.
First, a decentralized finance (DeFi) platform, Tinyman, which uses Algorand’s network, reported that it suffered an attack where hackers exploited its liquidity pool. Second, there are reports that Algorand may offer increased incentives to ALGO holders in the first quarter of 2022.
Price therefore would depend on a range of factors. One, if the wider cryptocurrency world can emerge from the ongoing correction, Algorand may also gain. Two, Algorand’s blockchain network would have to demonstrate capability to become the preferred proof-of-stake network.
If things go well on these two counts, ALGO may reach US$2 by the end of first quarter.
Data provided by CoinMarketCap.com
Predicting prices of cryptos is difficult considering the underlying hyper-volatility. ALGO may rise if it can prove its superiority over others and if Bitcoin and other major cryptos can pull off a comeback.0