Algorand Achieves New Record With 2 Billion Transactions, ALGO Price Jumps 14%
August 23 2024 - 5:00AM
NEWSBTC
In a recent report analyzing the second quarter (Q2) performance of
the Layer 1 (L1) blockchain Algorand (ALGO), data analytics firm
Messari highlighted several notable milestones achieved by the
network during the period, with a record in transactions being one
of the most notable ones. Rapid Network Growth One of the key
metrics that stood out was the surge in Algorand’s average daily
transactions, which skyrocketed by 104% to reach 4.7 million. The
total transactions recorded a more modest 6% quarter-over-quarter
(QoQ) increase, reaching 425 million. Despite this heightened
transaction volume, Algorand’s revenue took a hit, declining by 61%
to $152,000. The report attributed this to a 46% depreciation in
the value of ALGO against the US dollar compared to the previous
quarter. Even though the average transaction fee rose by 44%, the
overall dollar revenue still declined. Related Reading: Bitcoin
Could Target $63,000 But Must First Clear This Vital Resistance
Level The 61% decrease in quarterly revenue was also traced to a
correction following ALGO’s 1,747% surge in Q1, driven by a one-day
spike of 43 million transactions linked to the ORA memecoin
project. However, on a year-over-year (YoY) basis, Algorand’s
revenue saw a substantial 1,241% increase, climbing from $11,000 to
$152,000. On a positive note, Algorand reached a significant
milestone of 2 billion transactions during the quarter, showcasing
the network’s growth and adoption. Notably, the network took four
years to achieve its first billion transactions, while the second
billion was reached within just one year. Algorand Staking Drops To
Lowest Level In A Year In Q2 2024, the amount of ALGO staked on the
Algorand network declined 38% YoY and 6% QoQ, reaching its lowest
level at 1.6 billion ALGO staked in a year. Messari believes this
may be due to the decreasing rewards allocated per governance
period. The percentage of Algorand’s eligible supply that was
staked decreased by 4.7% QoQ and now stands at 20.2%. Meanwhile,
Algorand’s circulating supply increased by 1.2% to 8.2 billion
ALGO. Lastly, data shows that the market cap for stablecoins on
Algorand increased by 15% QoQ, rising from $73 million to $85
million, primarily driven by a 32% increase in Circle’s USDC
stablecoin market cap, which now accounts for 78% of the total
stablecoin market cap on Algorand. Conversely, Tether’s USDT
market cap dropped by 22%, making up 21% of Algorand’s stablecoin
market share. EURD’s market cap remained at a 1% share of
Algorand’s stablecoin market cap. ALGO Price Faces Make-Or-Break
Moment The ALGO token has seen significant price gains in recent
weeks after a challenging Q2 for the price and the broader market.
CoinGecko data shows that the token has seen a 14% price increase
in the last two weeks and 12% in the last seven days alone.
This has resulted in ALGO trading at $0.1357, just below its
200-day exponential moving average (EMA), marked by the yellow line
on the ALGO/USDT daily chart below, which currently acts as a wall
of resistance for the token. Related Reading: Solana Dump Far From
Over? Whales Continue To Dump SOL It will be essential to clear
this hurdle for a potential continuation of the price’s uptrend in
the coming days and to establish the same near-term support in the
event of a correction. Featured image from DALL-E, chart from
TradingView.com
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