ALGO Crypto Could Become An Alternative to Ethereum With More Apps
Algorand (CCC:ALGO-USD) is an $11 billion market cap crypto that some are looking to dethrone Ethereum (CCC:ETH-USD) as the king of Dapps (decentralized apps) and Defi (decentralized finance). A lot of people are looking to push higher as an alternative to Ethereum.
ALGO crypto is the 20th largest blockchain digital asset in the crypto universe, according to Coinmarketcap. In the last month, it has risen 5.3% to $1.78. But in the last 2 months from Sept. 7, Algorand has risen 47.5% from $1.2071 to $1.78 as of Oct. 20.
Recent Developments With Algorand
El Salvador recently recognized Bitcoin (CCC:BTC-USD) as a valid legal tender. As part of that announcement, Algorand was selected as the official blockchain platform for the project. In addition, the ALGO crypto was selected as the blockchain to assist El Salvador to develop its own blockchain infrastructure according to the Cointelegraph magazine.
In fact, it was actually a Latin American firm, Koibanx, which signed a “cooperation agreement” with El Salvador on Aug. 31. One of the activities in the project will be a national blockchain Covid certification program. Other activities in the project are a point-of-sale credit issuance system and various smart contract financing platforms. Here is why the agreement shows Algorand was worthwhile.
According to the release, Algo crypto has “the performance, scalability, security and functionality required to implement large scale projects around the world.”
In addition, the release said that Algorand’s “public, open source blockchain infrastructure provides interoperability and capacity to handle the volume of transactions needed for defi, financial institutions and governments to smoothly transition into FutureFi.”
Another recent development with Algorand crypto was news of a launch of the Algorand Virtual Machine or AVM. This is a layer-1 protocol upgrade that will help developers and third parties to scale decentralized apps in the Algorand blockchain.
In fact, as I wrote about last month, the Algorand Foundation recently announced that it will put 150 million Algo crypto (about $267 million at today’s rate) in a fund. It will be used toward developing “critical Defi infrastructure” for the Algo blockchain.
In addition, on Sept. 10, the Foundation announced two separate $5 million “Supagrants.” One is for the development of “oracle” networks with associated price feeds using Algorand. The other is for proposals to build bi-directional bridges from Ethereum and other chains.
This is exactly the kind of thing that you want a development organization like the Algorand Foundation. It will eventually feed through to a higher price for the Algo crypto token.
What to Do With Algo Crypto
Algo crypto has been on a run lately but it could still move plenty higher. Therefore, this might be a good time for those investors who have a speculative bent to take a look at Algo crypto.
Algo crypto has been rising for the past two months. But as more Dapps start to develop using the Algorand blockchain, the Algo crypto will become more popular. That is what could propel it higher.
Just keep in mind that this is highly volatile as a cryptocurrency investment. Only those who can withstand the vicissitudes of a highly speculative investment such as this crypto should make the plunge. Nevertheless, despite the risks, it still looks like over the long run Algo crypto will be a good investment.
On the date of publication, Mark R. Hake owns a long position Ethereum but did not own any other security mentioned in the article, directly or indirectly. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.