Algorand is a pure Proof of Stake blockchain that incorporates layer-1 State Proof into its core net protocol, improving network speed and overall performance. The update also includes new blockchain functionality for DeFi, NFTs, and Web 3. It has increased transaction speed fivefold and can currently process 6000 transactions per second.
It has become one of the leading protocols with higher TPS, even surpassing Visa’s capacity of 2000 transactions per second. TPS is greater than Bitcoin and Ethereum.
This upgrade also provides the ecosystem with a trustless cross-chain communication environment suited for Web 3 apps. Because developers believe that blockchain interoperability is the future of cryptocurrency, they have upgraded State Proof, a fundamental security aspect of such communication. The new tools also make it easier to construct this ecosystem.
The best thing is that Algorand has never experienced downtime since its establishment, making it a prominent player in payment solutions and the NFT area, which has the potential to revolutionize transaction definitions in the future. If you are looking for a long-term investment, read our ALGO price prediction.
The concept behind Algorand’s creation is to create a decentralized environment that combines the features of major, well-established cryptocurrencies with faster speed and fewer computational resources. The State Proof update is a critical step in their quest.
On the daily chart, candlesticks created higher highs and lower lows in July and August, but momentum shifted and the support ($0.30) was broken in the third week of August. Following that, Algorand has resumed its bullish trend this month (September), reaching higher highs.
We believe that now is the moment to invest because ALGO has firmly broken the resistance of $0.30 and is on its way to the next resistance of $0.37. ALGO is up more than 5% in the previous 24 hours, and candlesticks are developing above the Bollinger Bands’ baseline, with the RSI at 59.
On the weekly chart, Algorand has hit the level from which it began to rally in 2020, thus it is unlikely to break this level very soon. Because the short-term chart is in an uptrend, we believe now is an excellent opportunity to invest for the long run. Most technical indicators, however, show bearishness in the market, with a lack of volatility in Bollinger bands.