Algorand (ALGO) NFT Rewards Skyrocket: Transactions Surge 320% In Q3
November 10 2023 - 1:00PM
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Algorand (ALGO), a smart contract platform employing the
Proof-of-Stake (PoS) consensus mechanism, has showcased notable
progress in the third quarter (Q3) of the year, as reported by
Messari. Despite facing some challenges, the platform has
seen remarkable growth in its ecosystem and significant
developments in various aspects of its platform. Algorand Witnesses
Surge In Transaction Volume In Q3 Per the report, the non-fungible
token (NFT) Rewards program implemented by Algorand garnered
notable success, leading to a significant increase of 321% in
NFT-related transactions compared to the previous quarter.
This program, initiated through a governance vote in Q2, allocated
500,000 ALGO in rewards to NFT marketplace users to stimulate
activity. Related Reading: $5 Million Reward: Justin Sun’s Bold
Move Against Poloniex Attackers Furthermore, during Q3, Algorand
experienced a surge in user adoption, adding 1.1 million new
addresses and witnessing a 2% increase in total daily average
transactions compared to the previous quarter. However,
Algorand’s total stablecoin market cap faced a decline of 58% in
Q3, largely attributed to the decreasing market caps of stablecoins
on the platform. Despite this, USDC (USD Coin) surpassed USDT
(Tether), accounting for 76% of the stablecoin market cap. In the
decentralized finance (DeFi) space, Algofi, Algorand’s largest DeFi
protocol by Total Value Locked (TVL), began winding down operations
in July. As a result, Folks Finance emerged as the dominant
DeFi protocol on Algorand, capturing 55% of the DeFi TVL in Q3.
Algorand’s quarterly revenue, including fees collected by the
protocol, grew by 25% in ALGO terms; however, it declined by 23% in
USD terms due to the daily average ALGO price. Algorand’s
governance participation experienced a decline of 8% in Q3,
accounting for 30% of the circulating supply. The platform’s
network upgrade in Q3 allowed for increased throughput, lower
blocktime, and support for quantum-secure interoperability via
State Proofs. Looking ahead, Algorand has announced plans to launch
AlgoKit 2.0, a developer-focused tooling that aims to simplify the
developer experience. It also intends to shift its network topology
to a peer-to-peer design and transition to an incentivized
consensus economic model in 2024. ALGO Struggles To Break Key
Resistance Regarding price action, ALGO, currently ranked 53rd
among the largest cryptocurrencies in the market, has faced
challenges amid the recent bullish surge in most
cryptocurrencies. The token is currently trading at $0.1217,
experiencing a decline of over 7% in the past 24 hours. Despite
this retracement, ALGO has shown impressive gains across other time
frames. Related Reading: Ethereum At $2,100: Why Path To $2,500 Is
Now All Clear Over 7 and 14 days, ALGO has recorded significant
gains of 10% and 21%, respectively. The best performance was seen
in the 30 days, with a surge of 28%. However, ALGO has faced
a year-to-date decline of over 62%, in contrast to most of the
crypto market, where major cryptocurrencies have nearly doubled in
value since the end of the crypto winter. Moreover, ALGO has
struggled to surpass its 200-day moving average (MA), a significant
resistance level. This has resulted in the recent pullback,
preventing the token from reaching levels not seen since July,
where it reached $0.1364. The future trajectory of ALGO remains
uncertain. It will depend on continued developments and growth in
its ecosystem to propel the token towards its yearly high of
$0.2898, reached in February. Alternatively, ALGO may consolidate
below its moving averages. Featured image from Shutterstock, chart
from TradingView.com
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