The term “decentralized” refers to smart contracts. This is where a blockchain software protocol takes care of the typical middleman functions of a lender or investment firm. As such, ALGO crypto is designed to compete against Ethereum (CCC:ETH-USD), which is the dominant blockchain in the smart contract arena.
So far, Algorand has been rising as if this will actually occur. But it may take a good while for the market on the whole to realize this.
Where Algorand May Go
Algorand is the No. 18 largest cryptocurrency according to CoinMarketCap. It has a market value of about $13.9 billion as of Nov. 12 and trades around $2.23 per ALGO token.
Since the end of Q3 on Sept. 30, when Algorand was $1.62 per ALGO token, it has risen 38%.
However, it may still take some time for the coin to reach its goal as the future of finance as its website says. If that ever happens, you can be sure that Algorand will be significantly higher than where it is today.
Slowly but surely, though, the cryptocurrency is making strides towards its goal. El Salvador recently recognized Bitcoin (CCC:BTC-USD) as a valid legal tender. Algorand was selected as the official blockchain platform for the project.
In addition, El Salvador will develop its own blockchain infrastructure according to the CoinTelegraph. They have selected Algorand as the cryptocurrency to help build out this infrastructure.
El Salvador is that not big a country. Its population is only 6.8 million. Its national GDP is over $53.6 billion. This is similar to a large U.S. city like Phoenix or Houston.
Therefore, if Algorand can be seen as a success for El Salvador, then you could see major projects occur in the US as a result. In other words, this is going to be a major test case for the crypto.
But now a major hedge fund is an early believer in Algorand. Skybridge Capital, a hedge fund run by Anthony Scaramucci, secured a new blockchain partnership with trading platform NAX using Algorand. The partnership will use Algorand as its blockchain platform to invest in NFTs (non-fungible tokens) projects and other altcoins.
Where This Leaves Algorand
As I indicated, it may take some time for Algorand to catch on. Everyone will be watching how well the El Salvador projects turns out.
If it is a success, expect to see many more countries, cities, and major corporations start to use Algorand as a smart contract blockchain platform.
Meanwhile, the Algorand Foundation, which was responsible for the Algorand blockchain and its ecosystem development, is not sitting on its hands. It has put together a $300 million fund to invest in DeFi (decentralized finance) projects.
Moreover, the Foundation also came out with a new upgrade for the blockchain that will help developers program in its DeFi platform space. It launched an “Algorand virtual machine” or AVM, which will enhance decentralized app scalability for developers. It will give developers program tools to write smart contracts in Python or Reach.
The Foundation’s Chief Product Officer was quoted by CoinTelegraph magazine as saying the AVM upgrade will help smart contract abilities for the crypto. It can assist developers to develop NFTs (non-fungible tokens) and Web3 projects.
Once these changes take root, expect to see ALGO take off even higher.
On the date of publication, Mark R. Hake did not own any security mentioned in the article, directly or indirectly. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.