Will Algorand (ALGO) be the next potential candidate to compete with Ethereum?
Although less popular, Algorand has been very active in the past few days as the blockchain seeks to compete with the DeFi blockchain king, Ethereum. The ALGO token has made significant gains in the smart contract wars with Ethereum and Cardano.
ALGO and growth in this week
Over the past week, ALGO is up 101%, taking the price from $ 1.1 to $ 2.1 in just 7 days. On September 8th alone, prices were about 50% higher.
A key reason for such a strong rally is the partnership between the government of El Salvador and the Koibanx. According to a communication from communicationThis relationship will allow Koibanx to build a government blockchain infrastructure on top of the Algorand network.
ALGO up 101% for the week | Source: TradingView
The news came even before Bitcoin became legal tender in El Salvador. Thus, it drives the price of ALGO as well as investors. Additionally, watching the volume gives us a similar signal, rising from the average of $ 180 million to a high of $ 2.79 billion.
Trading volume ALGO at $ 2.79 billion | Source: Coinalyze
At the same time, investors also piled up wildly as more than 1.2 billion ALGO were bought for $ 2.58 billion in the same period.
ALGO purchase volume (green) | Source: Coinalyze
This coin also did very well in terms of derivatives. Open interest is at an all-time high and volume peaked at $ 3.28 billion, up 671% in less than 2 days.
OI ALGO reaches level the highest of all time | Source: Coinalyze
But how can you compete with Ethereum?
The reason Algorand has competitive potential lies in the better performance of the network.
Algorand supports interoperability, and although the network’s Algorand Virtual Machine (AVM) doesn’t allow Ethereum dapps (decentralized applications) to run, the AVM itself is faster and cheaper to create smart contracts. In addition, a new partnership with El Salvador could make Algorand a new focus for developers.
Algorand virtual machine and Ethereum virtual machine
In addition, the Algorand Foundation only has announced $ 300 million fund to support DeFi innovation. This fund is used to develop decentralized exchanges, NFT platforms, etc.
However, investors wishing to participate must keep in mind that this coin is very volatile and is falling as fast as it is rising.
Graduation bFluctuations by Algorand | Source: Messari
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According to AMBCrypto