Algorand Has Rallied 600% This Year—What Has Fueled These Gains?

Algorand Has Rallied 600% This Year—What Has Fueled These Gains?

The price of algo, the native token of the Algorand platform, has risen sharply this year, climbing higher as its network benefits from rising adoption and widespread visibility. Algo reached $2. 49 on September 9, at which point it was up more than 630% year-to-date (YTD), CoinDesk data shows. Further, it was trading at its highest point since late January, when the digital asset's price surpassed $3, additional CoinDesk figures reveal. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] This digital currency has gained value at a time when the Algorand network, which leverages pure proof-of-stake for its consensus algorithm, seems to be benefiting from widespread utilization. Since its launch in 2019, the blockchain platform, which is designed to finalize transactions almost instantly and provide high throughput, has caught the attention of governments, industry participants, investors, and the key stakeholders behind stablecoins USDC and tether. Late last month, financial infrastructure provider Koibanx announced that it had made an agreement with El Salvador, which would involve the company building blockchain infrastructure on top of the Algorand blockchain. Under this agreement, Algorand helped