According to a recent report Messari's Algorand (ALGO) smart contract platform showed notable growth and outperformed the overall crypto market during the fourth quarter of 2023.
Algorand Outpaces crypto Market Growth
According to the report, Algorand saw an increase in market capitalization during the fourth quarter of 2023, with a significant growth rate of 123%. This substantial increase can be attributed to the overall positive momentum of the crypto market, which witnessed a 53% growth in market capitalization during the same period.
Transactions on the Algorand network also saw a significant increase, increasing 58% quarter-over-quarter (QoQ). Consequently, commission income increased by 60%, reaching its highest level in a year when measured in ALGO termswhile revenue in US dollar terms increased by an impressive 143%.
According to Messari, Algorand's success can be attributed to its “thriving” ecosystem, which saw the launch of multiple innovative applications in the fourth quarter of 2023. These applications covered various areas, such as the regulated and programmable euro, tokenized agricultural land, and a developer marketplace to sell code. fragments.
The introduction of these applications further solidified Algorand's position as a “dynamic and versatile” platform, attracting users from diverse domains, according to the report.
Furthermore, Algorand witnessed a substantial increase in user adoption during the fourth quarter of 2023, with the incorporation of 1.9 million new addresses, representing a quarter-on-quarter growth of 72%.
The platform also saw an increase in transaction volume, with transactions exceeding 5.5 million towards the end of the quarter, marking the highest figure recorded last year. Notably, ALGO transactions increased 43% quarter-on-quarter.
Messari further suggests that the increase in transactions can be attributed to the popularity of fixed applications such as Lofty.ai, which had more than 7,000 monthly active users, and TravelX, which issued more than 2 million nft airline tickets, of which more than 1 million were issued in the fourth quarter alone. .
Decrease in ALGO wagered
Despite growth in key metrics, the report highlighted a decline in the amount of ALGO staked during the fourth quarter, with a year-over-year (YoY) decline of 49%. Messari attributed this decline to reduced governance period rewards.
He diminishing rewards They indicate a preference among users to use the native asset for transactions rather than committing it to governance. This is further supported by the notable 58% quarter-on-quarter increase in transactions on the Algorand network.
Similarly, the Algorand stablecoin market capitalization saw a steady decline throughout the year, with a 43% quarter-over-quarter decline and a 74% year-over-year decline.
Notably, Tether's USDT stablecoin saw a more severe drop on Algorand, with more than $100 million withdrawn in the third quarter. However, Quantoz launched EURD on Algorand, issuing over 1 million euro-backed tokens in the fourth quarter, contributing to 1.4% of the stablecoin market cap on the platform.
Despite previous crashes, Algorand decentralized finance (DeFi) total value locked (TVL) saw a significant growth of 109% in Q4 2023.
The platform's DeFi ecosystem recovered from a recent downturn and hit its second-highest level last year, up 12% year-over-year. Notably, Folks Finance saw substantial growth, doubling the value of its market share from 55% to 58%, while Pact and Tinyman accounted for approximately 14% of each of the DeFi TVL market shares in the fourth trimester.
As of the last update, the ALGO token is currently trading at $0.1753. It has seen significant drops over various time periods, with notable drops of 8.7%, 12.4%, and 18.5% in the last fourteen days, thirty days, and one year, respectively.
Featured image from Shutterstock, chart from TradingView.com
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