Main navigation

More than 98% of Algorand (ALGO) Addresses Are in Loss, Here's How to Turn Tide

Thu, 03/16/2023 - 15:50
article image
Godfrey Benjamin
Algorand can benefit from innovations from its peers, including Layer 2
More than 98% of Algorand (ALGO) Addresses Are in Loss, Here's How to Turn Tide
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

Among the legacy Layer 1 Proof-of-Stake (PoS) protocols, Algorand (ALGO) is exhibiting one of the most bearish records at the moment. According to data from crypto analytics provider IntoTheBlock, more than 16.4 million Algorand addresses are currently "Out of the Money," implying they are trading at a loss.

Algorand Chart
Image Source: IntoTheBlock

This represents a little more than 98% of the total addresses registered on the blockchain. The loss printing address metric on Algorand appears directly proportional to its price, with the cryptocurrency now priced at $0.2061, down 5.11% over the past 24 hours.

Algorand has been underperforming its peers, a trend that is confirmed by the slowing trading volume, which has slumped by more than 30% overnight. For a digital currency whose sentiment shot up during the last Fifa World Cup in Qatar owing to its role as the blockchain partner of the organizing body, Algorand has dropped by more than 15.21% in the past month to date.

Compared to the top PoS protocols around, including Ethereum (ETH), Cardano (ADA), Solana (SOL) and Avalanche (AVAX), among others, Algorand has a long way to go to be a truly certified Ethereum killer.

Algorand Is up 28% in Week, Here Are Two Potential Reasons for Rise

Projected remedies to slow growth

One unique feature that the aforementioned top protocols exhibit is a solid branding and community presence. That Algorand is a unique and versatile protocol is an understatement, as it is fast and scalable, but its community is not as solidly knitted.

One major trend that is powering the growth of protocols like Ethereum is the advent of many functional Layer 2 protocols. With the likes of Shibarium, Polygon, Arbitrum and Optimism making waves, Algorand's developers can trail related innovations to expand their influence across the board.

Although Algorand has its own innovative advantages, adopting what Web3.0 users want is a key to upturning its growth in the near future.

article image
About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.