Algorand (ALGO) Stuns In Q4: Market Cap Soars, TVL Doubles, And User Base Skyrockets
January 19 2024 - 10:00PM
NEWSBTC
According to a recent report by Messari, smart contract platform
Algorand (ALGO), showcased notable growth and outperformed the
general crypto market during the fourth quarter of 2023. Algorand
Outperforms Crypto Market Growth Per the report, Algorand
experienced a surge in market capitalization during Q4 2023, with a
significant growth rate of 123%. This substantial increase can be
attributed to the overall positive momentum of the crypto market,
which witnessed a 53% growth in market capitalization during the
same period. Transactions on the Algorand network also saw a
significant uptick, increasing by 58% quarter-on-quarter (QoQ).
Consequently, fee revenue rose by 60%, reaching its highest level
in a year when measured in ALGO terms, while revenue in USD terms
surged by an impressive 143%. Related Reading: More Pain To Come:
Crypto Analyst Predicts Massive XRP Crash To $0.34 According to
Messari, Algorand’s success can be attributed to its “thriving”
ecosystem, which saw the launch of multiple innovative applications
in Q4 2023. These applications covered diverse areas such as
regulated and programmable euro, tokenized farmland, and a
developer marketplace for selling code snippets. The
introduction of these applications further solidified Algorand’s
position as a “dynamic and versatile” platform, attracting users
from various domains, according to the report. Moreover,
Algorand witnessed a substantial increase in user adoption during
Q4 2023, with the addition of 1.9 million new addresses,
representing a 72% QoQ growth. The platform also experienced
a surge in transaction volume, with transactions surpassing 5.5
million towards the end of the quarter, marking the highest number
recorded in the past year. Notably, ALGO transactions increased by
43% QoQ. Messari further suggests that the rise in
transactions can be attributed to the popularity of sticky
applications like Lofty.ai, which boasted over 7,000 monthly active
users, and TravelX, which issued over 2 million NFT plane tickets,
with over 1 million issued in Q4 alone. Decrease In Staked ALGO
Despite growth in key metrics, the report highlighted a decline in
the amount of staked ALGO during Q4, with a 49% year-on-year (YoY)
decrease. Messari attributed this decline to the reduction in
rewards per governance period. The diminishing rewards
indicate a preference among users to utilize the native asset for
transactions rather than committing it to governance. This is
further supported by the notable 58% QoQ increase in transactions
on the Algorand network. Similarly, Algorand’s stablecoin market
cap experienced a steady decline throughout the year, with a QoQ
decrease of 43% and a YoY decrease of 74%. Notably, Tether’s
USDT stablecoin experienced a more severe fall on Algorand, with
over $100 million withdrawn in Q3. However, Quantoz launched EURD
on Algorand, issuing over 1 million euro-backed tokens in Q4,
contributing to 1.4% of the stablecoin market cap on the platform.
Related Reading: Ripple CTO Breaks Down XRP Distribution And Who
Controlled 99% Of Supply At Genesis Despite previous declines,
Algorand’s decentralized finance (DeFi) total value locked (TVL)
witnessed a significant growth of 109% in Q4 2023. The
platform’s DeFi ecosystem rebounded from a recent downturn,
reaching its second-highest level in the past year, with a 12% YoY
increase. Notably, Folks Finance experienced substantial growth,
doubling its market share value from 55% to 58%, while Pact and
Tinyman accounted for approximately 14% of each of the DeFi TVL
market share in Q4. As of the latest update, the ALGO token is
currently trading at $0.1753. It has experienced significant
declines across various time frames, with notable decreases of
8.7%, 12.4%, and 18.5% in the past fourteen days, thirty days, and
one year, respectively. Featured image from Shutterstock,
chart from TradingView.com
Algorand (COIN:ALGOUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Algorand (COIN:ALGOUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024