Keep Algorand on your radar as this crypto begins to take off
Algorand (CCC:ALGO-USD) has been on the rise since crypto recovery launched in mid-July. At the time, it was trading at around 70 cents. Now, even after the latest cryptocurrency market pullback? It rose more than 155%, to around $ 1.70 this morning.
Factors beyond its control will determine its direction in the short term. Concerns about a market correction are still looming.
With cryptos becoming increasingly correlated with stocks, cryptos could see another round of general declines. Does that mean you have to head for the hills and avoid that space? Not so fast.
Instead, another crypto sell can give you the opportunity to grab potential long-term winners at cheaper prices. ALGO falls firmly in this category due to its growing institutional support and use.
If this continues in the years to come, this altcoin could climb the list of the most valuable cryptos by market cap.
It may never reach a valuation comparable to Ethereum (CCC:ETH-USD).
Yet if he can reach the level of Cardano (CCC:ADA-USD) and become one of Ethereum’s top “killers”, investors who see it as a buy today, or any potential weakness in the near term, could reap fantastic returns.
Algorand: institutional support and use
As I wrote before, this altcoin’s blockchain has managed to accomplish quite a bit in the two years since its launch. Many third parties are now using its platform, and recent developments show that it continues to win major contracts.
For example, in its recent deal with Koibanx, the fintech developer will use the Algorand platform to develop El Salvador’s blockchain infrastructure. In addition, it continues to enter into important partnerships with third parties, such as its recent $ 100 million partnership with the Drone Racing League.
In addition, institutional support to ALGO is growing. Like my Investor place his colleague Mark Hake discussed it recently, Skybridge Capital by Anthony Scaramucci is investing heavily in this altcoin.
Already holding $ 700 million in tokens, the hedge fund plans to buy more after raising $ 100 million for an Algorand-specific exchange-traded fund (ETF).
To top it off, heavy investments in its development are also continuing. The developer of this blockchain (The Algorand Foundation) is investing nearly $ 300 million in DeFi (decentralized finance) projects using its platform.
The main takeaway from the news about more partners, funders, and projects is that there is a clear path for this rising altcoin star to continue to climb.
Volatility can be your friend
He’s got a lot going on, but that doesn’t mean you have to cram into ALGO all at once. You may still want to take your time to lock in a position after its triple digit rally. This is all the more true as clouds of uncertainty hang over the financial markets.
When it comes to buying Algorand, possible short-term volatility could be your friend. That is, the crypto markets could be set to take another plunge.
Due either to a shift from “risk-taking” to “risk-free” among market participants, or the announcement of increased regulation of China and the United States
With more eyes, we might not see another pass below 70 cents for ALGO, but since it’s still a lot less liquid than Bitcoin (CCC:BTC) and Ethereum, a continued drop would likely lead to a disproportionate price drop.
A return to $ 1 to $ 1.25 per token is not out of the question.
Short-term traders have made big gains from this promising token during crypto’s recent comeback. The coming months, or maybe next year, may be more difficult. Still, for investors who view this as a long-term game, volatility could give you the opportunity to make it a major position, at prices far below where it is changing hands today.
Think of ALGO as a Top Altcoin to buy
As you can see, I am bullish on this crypto. Still, I will admit that it is not guaranteed to reach the level of leader of the “Ethereum killer” like Cardano.
Competition is fierce when it comes to blockchains looking to become widely used in DeFi. This can limit its ultimate usage level and, in turn, the eventual price of its token. However, it is still a competitor, and this one is only just starting to take off. ALGO remains an altcoin worth buying.
Don’t “bet the ranch” on that just yet, as the opportunity to enter at lower prices might be around the corner. But if you’re bullish on the long-term prospects for crypto, be sure to include Algorand in your portfolio.
InvestorPlace does not regularly post reviews on cryptocurrencies with a market cap of less than $ 100 million or of a volume of less than $ 100,000 every day. This is because these “penny cryptos” are frequently the playground for scammers and market manipulators. When we post a comment on low volume crypto that may be affected by our comment, we request that InvestorPlace.comThe editors of s reveal this fact and warn readers of the risks.
Read more: How to Avoid Popular Cryptocurrency Scams
At the date of publication, Thomas Niel held long positions in Bitcoin and Ethereum. He had (directly or indirectly) no position on any other title mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Thomas Niel, contributor for InvestorPlace.com, has been writing individual equity analysis for online publications since 2016.