The Algorand ecosystem is having a good time. The recently announced staking rewards have catapulted the price of its native Cryptocurrency, ALGO, to levels not seen in over a year.
The cryptocurrency ALGO has experienced an increase of 64% in the last seven daysrising from $0.28 to $0.52.
This rally has taken its market capitalization to $4 billion, placing it in the place 36 among the main cryptocurrencies by capitalization.
This rebound marks a milestone, since ALGO has not reached similar values since May 2022as seen in the following graph of TradingView.
Price of SOMETHING. Source: TradingView.
Not only the price has registered significant growth. Algorand’s Total Value Locked (TVL), which measures assets deposited in the protocol, has also risen 61% in a week, going from $126 million to $204 million, according to DeFiLlama data.
This increase shows the growing interest of investors in actively participating in the network.
Algorand TVL. Source: DeFiLlama.
The TVL is a key indicator in the world of cryptocurrencies, because it reflects the trust of users in the protocolby measuring how many assets are “locked” in it. In this context, Algorand is strengthened as a benchmark for decentralization and security.
Staking rewards: Algorand’s new attraction
The ALGO rally has a direct cause: the implementation of staking rewards.
Starting this month, the protocol will allow users to generate income by actively participating in the network.
John Alan Woods, CTO of the Algorand Foundation, highlighted this novelty during the Staking Summit, emphasizing that users can stake to “help secure the network and collect rewards.”
Initial rewards for block proposers are 10 SOMETHING plus 50% transaction fees for each block added to the chain. These rewards are distributed almost in real time, every 2.8 seconds, according to what the website from the Algorand Foundation.
To run a node on Algorand, users need a computer with at least 16GB of RAM, a fast SSD, and a 1Gbps internet connection. This technical requirement allows the network to remain secure and efficient.
Although the terms are often used interchangeably, there are key differences. He Ethereum-2-0/” target=”_blank” rel=”noreferrer noopener”>staking It is the consensus mechanism that allows token holders to validate transactions and secure the network, blocking their assets for a period, as indicated by Criptopedia, the educational section of CriptoNoticias.
Instead, rewards are the incentives that stakers receive for their participation, guaranteeing the health and decentralization of the network.
The educational and social role of Algorand
Beyond staking rewards, Algorand has reinforced its global relevance through strategic alliances.
Recently, the Algorand Foundation Blockchain-academy-global” target=”_blank” rel=”noreferrer noopener”>advertisement together with the United Nations Development Program (UNDP) the global expansion of the Innovation for Development educational program.
Previously limited to Europe and Central Asia, this program will now cover new regions with the objective of promoting blockchain training.
The foundation also leads efforts to increase access to blockchain-based cash assistance during humanitarian crises. In June 2024, it formed a council focused on this goal, reaffirming its commitment to the UN Sustainable Development Goals.
ALGO perspectives: sustainable rally?
The future of ALGO looks promising. According to the analyst whose pseudonym is Steph_iscrypto, who share your analysis in network ALGO weekly chart shows “double bottom” technical pattern.
This pattern, commonly associated with bullish trends, could lead the price of the cryptocurrency to reach $1.26 or even higher, as seen on the chart.
Price of SOMETHING. Source: Steph_iscrypto.
The “double bottom” is formed when an asset reaches two consecutive lows, separated by an intermediate bounce, and then begins an uptrend. Visually, this pattern resembles a “W”and in the case of ALGO, indicates the possibility of new highs.
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