Can Algorand be used as a suitable investment platform in the long run? Is it possible to invest in Algorand in the digital currency market? These are all questions you may have in mind, but we want to explore the answers to all of these questions in this article.
According to published reports on advances in blockchain technology, Algorand has a very bright future, in addition to the fact that this cryptocurrency can appear beyond our imagination or even our predictions.
In 2021, Algorand became one of the top 50 digital currencies in the world in terms of trading volume with explosive growth. If you had bought this digital currency at the beginning of 2021, you would have been able to sell it with 881% growth only a few weeks later. This digital currency does not seem to decline in 2021 or later.
Many analysts and experts believe that Algorand has the potential for explosive growth in the coming years, so it is one of the best cryptocurrencies to invest in.
Last year, Errington’s $ 100 million investment in Algorand showed just how valuable this cryptocurrency could be for future investment and return.
There are many questions about Algorand. When is the right time to invest in this cryptocurrency? When does the price reach $ 10? Is Algorand suitable for long-term investment?
What is Algorand?
Algorand is one of the open-source blockchain network technologies. The network is based on a decentralized peer-to-peer system to ensure all three elements of cryptocurrencies: speed, decentralization, and security.
The Algorand network was developed by Silvio Micali in 2017 but did not enter the market until 2019 as an initial launch.
In 2021, the Algorand digital currency, known as ALGO, became one of the world’s 50 most traded digital currencies.
One of Algorand’s most common applications is decentralized applications. This network uses digital assets, insurance systems, identification, security, supply chain, infrastructure, stable coin, financial institutions, Defi, gaming, and other things in the world. ALGO plays a vital role in providing all the things that Algorand can implement
So with such massive growth and the importance of this network and its digital currency, Algorand will become the third most widely used blockchain in the world in the next five years.
Is Algorand (ALGO) A Good Investment?
As one of the most popular blockchain platforms, many experts believe that Algorand can be a good option for long-term investment. Although the price of ALGO currency fluctuates a lot, its growth and stability trend will begin almost from the beginning of 2022.
According to CoinPedia, if Algorand gets a proper upgrade, it could be around $ 15 by the end of 2021. Algorand blockchain protocols are now more robust, and its rules are changing. By the end of 2022, the price of ALGO could reach close to $ 35, and then in 2026, it could go to more than $ 60.
Of course, such predictions always need a solid reason. What prerequisites do we need for Algo to see this price in the coming years?
At the end of 2021, the digital currency asset minter with the exact name ALGOMINT launches. This platform can boost network liquidity to overcome the limitations of the Algorand ecosystem on Defi. Creating Algomint aims to increase the speed and volume of transactions on the Algorand blockchain with more than 46,000 transactions per second.
After the initial release of Algomint and the increase in the speed of transactions in the Algorand blockchain, the transaction cost will reach $ 0.001. We should also see support for goETH and goBTC after its release.
Algorand’s unique features include carbon nature, no forks, zero uncertainty to confirm the transaction, and breakneck transaction speed. Algorand also offers Meld Gold, one of the best protocol standards on the market.
With the volume of transactions relative to the value that ALgo has in the digital currency market, it can be predicted that this cryptocurrency can reach a trading volume equal to Ether or even more in the long run.
When to invest in Algorand?
As we explained, Algorand covers a large part of the technology coverage market. The maximum volume of decentralized applications or coverage at different levels indicates its epidemic in the coming years. Even the gaming world, which is visited by millions of people every year, is a vast field for increasing the application of Algorand and Algo.
Even with the advent of ALgomint in late 2021, investors can predict a massive revolution in Algorand and the price of Algo currency.
According to the analysis, ALGO could reach 1.78$ in late September 2021 and more than $ 2.5 in the last days of this year.
What is the strategy behind these predictions?
In June 2021, a former PayPal employee launched a decentralized payment network system on Algorand. However, Ripple is currently one of the best digital currencies on cross-border payment methods. But Algorand seems to be an extensive system with high network capability and high-performance decentralized applications.
New methods for cross-border payment on Algorand help its investors to trade Fiat currencies like digital currencies. The project also proposes amendments to Swift protocols for cross-border payments. To achieve digital currencies on Algorand, StableCoin USDC plays a vital role in this regard.
With all these interpretations, Algorand in Defi on Stable Coins and Border Payments is also fierce competition with other blockchains. The more liquidity that enters the network, the higher the probability of ALGO buying and the higher the trading volume.
Is Algorand better or Bitcoin?
Which digital currencies to invest in and how depends on personal analysis and needs. You can invest in both Bitcoin and ALGO in the short and long term, but first, there are some things to look for.
Bitcoin is the most valuable and popular digital currency in the world. The amount of liquidity and trading volume is beyond imagination, and many even know cryptocurrencies like bitcoins. The market value of this currency is close to $ 6.18 billion.
Bitcoin founds in most digital currency transactions. As you know, all blockchain networks work as a peer-to-peer network, meaning you have to find another person who owns bitcoin and trade bitcoins on that blockchain.
However, Bitcoin had problems due to the high number of transactions and lack of scalability. In 2017, developers created a new digital currency with different protocols based on bitcoin called Bitcoin Cash with a hard fork. So bitcoin went on its way, but most users were reluctant to invest in bitcoin.
Algorand falls into the category of altcoins. This digital currency was launched in 2019 and worked according to the structural pattern of Atrium. Also, due to the Proof of Stake algorithm creation for this blockchain, this network’s transaction speed and popularity increased. ALGO could cover more than 20 technology fields shortly. Its transaction speed is faster than Bitcoin and Atrium, and perhaps most blockchains are based on smart contracts. Its use in cross-border payments and CBDS will also be one of the reasons for its progress soon.
So is Algorand worth the investment, both short-term and long-term? Although it fluctuates widely and has a lower price-to-earnings ratio than other digital currencies, analysis shows that it has much more room for improvement than Atrium and Bitcoin.
According to Wallet Investor technical analysis, the model’s price can reach $ 1.33 by the end of 2021. In the same report, the final cost of Bitcoin is estimated at around $ 57,161 for the end of the year.
In the long run, the Algo could reach $ 8.361 and a market value of $ 191398 and this means that Algo can have a positive return of more than 834% in the long run.
Will the price of ALGO reach BTC?
The third generation of blockchains is precisely targeting the 2030s and beyond. When the digital currency market moves from this form to decentralized applications and dominates most of the market with such applications, the price of Algo can be even higher than that of Bitcoin. Algo has a trading volume of about $ 73 million, while Bitcoin is currently at the top of the top cryptocurrencies with $ 684 billion. To reach this figure, the volume of Algo transactions must increase more than 100 times.
Algorand price prediction
Due to the high potential of the Algorand blockchain, many structural analyzes perform on the network. In these analyzes, Algo price forecast until 2021, price forecast until 20222, and up to 2030 are also mentioned directly.
According to Wallet Investor forecasts, the price of Algo will average $ 2,783, and the lowest price will be $ 1,574. In this case, the maximum cost of Algo is $ 4 at the end of 2023. Of course, with the release of Algomint, these prices average 3.
According to the DIgital coin Price forecast, the price of Algo will reach more than $ 1.41 by the end of 2021. it will also be priced at $ 2.24 in 2023 and 204. A long-term investment in Algo will be priced at $ 3.17 in 2026 and approximately $ 4.04 by the end of 2028.
According to David Cox’s analysis, the price of Algo at the end of 2021 is about $ 2.4. also at the end of 2023, the price will reach approximately $ 5. for the next five years, the cost of Algo will be around $ 6.
Should we buy Algo in 2021?
2021 is also an excellent time to buy Algo. It is currently priced under $ 1 and can be safely invested in.
Buying 1000 Algo can cost you $ 1000, but you need to spend millions of dollars to buy 1000 Atrium or 1000 Bitcoins.
Note that if a digital asset reaches its lowest point in a given period, it is the best time to invest in it because investors suddenly bring in millions of dollars in a short period. It’s still not too late to buy Algo.
Who benefits from Algorand?
Many traders and investors benefit from investing in Algorand. Below is a list of people who can make a lot of money from this blockchain network:
Digital Currency Traders: Many traders familiar with the nature of digital currencies can learn about Algo’s profitability in the coming years by reviewing technical and fundamental analyses.
- Day traders: Algorand has a lot of volatility, and many traders looking for volatility can make a big profit from Algo based on the volatility rate of 1.08 during a month.
- Blockchain Experts: Many blockchain enthusiasts and experts are aware of the level of Algo coverage due to the extensive research and review of these types of networks. Algorand is an exciting project with the highest level of decentralized market coverage.
- People who make low-risk investments: These people make safe investments by carefully examining the cryptocurrency market and focusing on more approved tokens. Algo is one of the best digital currencies under $ 1, which can be considered a safe investment.
Risks for investing in Algorand
Investing in the entire digital currency market is risky. Because there are sharp fluctuations in this market and it is still not so stable and robust. Many investors suddenly and out of fear of withdrawing their capital from this market to not suffer losses. So the risk of digital currencies is a bit high.
On June 21, 2019, Algo reached its maximum price of $ 3.28. Although this currency has not reached such a figure again for two years, traders can open a particular account on it.
Never put all your capital into the market all of a sudden. Investing in ALgo should be done by looking further and seeing technical analysis charts. You can split the total money between different digital currencies and buy some with less volatility and some with more volatility.
Algorand disadvantages
Investing in Algo is likely to have a negative effect. The only risk-free investment is Treasury Bills. Any investment, whether in cryptocurrencies or the stock market, can be harmful. the number of people who have profit in this market is one in twenty of those who have failed.
Invest in Algo if you know everything about blockchain protocols. You can also find out more about Algorand by looking at its specifications.
Algorand Future
In general, one of the digital currencies that has a very bright future is Algo. This cryptocurrency is excellent because of the way it implements its blockchain technology. This blockchain is used to implement decentralized financial applications, NFTs, and build central bank digital currencies.
More than 100 companies and institutions have developed new resources using Algorand software methods. Algorand can also increase its transaction speed to more than 46,000 transactions per second, one of the fastest among all platforms in the world.
Algorand market size also plays a vital role in its technical analysis and will help to examine price patterns more closely in the future. Algorand’s trading volume reached more than $ 63 million in 2021. The higher this rate, the greater the willingness of investors to invest in it.
Conclusion
Consider investing in Algorand with caution. Algo will have a very bright future from 2022, and its price will rise sharply. From the beginning of 2021 until the time of writing, the price of Algo has risen from $ 0.33 to $ 0.9. This price increase will likely be close to $ 1.62 by the end of 2021 and approximately $ 6 to $ 10 within five years.
So is investing in Algorand the right thing to do? If you are thinking of a safe investment for the long term, we suggest you buy Algo.