The value of Algorand (ALGO) has exploded recently, outperforming the most prominent cryptocurrencies following the announcement of a move to proof-of-state ecosystem. According to data collected by CoinMarketCap, the ALGO token rose by 12.74%. The volume of transactions has also increased by 45.26% in 24 hours since this decentralization decision. This development suggests that the cryptocurrency might break new records.
The announcement of decentralization has motivated investors
The founder of Algorand announced on September 22 that the project’s ecosystem will be moving to a proof-of-state protocol in an effort to facilitate connection to bridges without an intermediary. This change will be useful at the security level because it will protect the network from quantum attacks. Users will have no fear when it comes to verifying their digital signatures with public keys.
After this announcement, fluctuations were observed on the Algorand network. The bulk of the activity was seen in on-chain NFT exchanges. Santiment saw ALGO’s NFT trades jump to $606,000 on September 22 from an estimated $186,000 the previous day. Another fact demonstrates the impact of moving to proof of status.
While NFT activity was near zero on September 19 and 20, it recorded $346,000 from the start of the Proof of Status Protocol operation. This shows how receptive the community was to this news.
Will the euphoria go down once more?
The real question right now is whether the uptrend will continue. ALGO is on a good wave right now and that is reflected in its RSI index. Experts fear that the overbought level that looms on the horizon will lead to a trend reversal. However, looking at ALGO’s exponential moving average, it is possible that the uptrend will continue.
Additionally, there are other elements to suggest that the cryptocurrency is on a roll. After the US Federal Reserve raised the interest rate, Algorand is one of the few cryptos that has maintained a good level. Moreover, the appointment of Michele Quintaglie as the new marketing director allowed the project to gain popularity with a 15% increase in the market. This woman is known for her vast experience in companies such as Visa, Raytheon Technologies and Fidelity. In addition, Algorand’s recent partnership with FIFA, the world football body, has increased investor interest in the crypto project.
