A High-Performance, Eco-Friendly Blockchain with Solid Fundamentals » The Merkle News

Algorand has carved out a niche among layer 1 blockchains by offering high capacity, fast finality, low transaction fees, and a commitment to being carbon neutral.

This positions it as a formidable contender in the blockchain ecosystem, supported by impressive usage metrics and user trust.

Active user base and network growth

Algorand boasts over 54,000 daily active addresses, surpassing the activity levels of networks like Dogecoin (52,000) and Avalanche (48,000).

This places Algorand fifth among the best protocols in terms of active users. The network has over 21 million addresses with a balance that reflects gradual and constant growth.

Transaction activities

Transaction volume on Algorand has seen a substantial increase, doubling since the end of 2023. The current 7-day average is 1.36 million transactions per day.

Notably, 96.43% of these transactions are less than $1, indicating high usage for automated transactions and smart contract interactions. Algorand’s transaction fee of just $0.001 ALGO makes it an economical choice for conducting a large volume of transactions.

Ownership models and market trust

On average, $ALGO tokens are held for nearly 11 months, which is longer than Avalanche’s 5.9 months but slightly shorter than Cardano’s one-year average. This long holding period suggests a high degree of confidence among investors.

Additionally, large holders hold 20.7% of total supply, up from 19.4% in May. This continued accumulation by important stakeholders is a positive sign for network growth and potential price appreciation.

Despite these positive indicators, the majority of $ALGO holders are currently at a loss, with only 9% making a profit at current prices. This reflects slower price development, despite strong network fundamentals.

Conclusion

Algorand’s strong fundamentals, including a growing active user base, increased transaction activity, and trust from large holders, highlight its potential.

However, slow price growth means that most holders are currently making a loss. However, Algorand’s unique features and ongoing development efforts point to a promising future for the network.

Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.

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