Algorand (SOMETHING), the smart contract platform employing the Proof-of-Stake (PoS) consensus mechanism, has shown notable progress in the third quarter (Q3) of the year, as reported by Messari.
Despite facing some challenges, the platform has seen notable growth in its ecosystem and significant developments in various aspects of its platform.
Algorand witnesses surge in transaction volume in Q3
According to the report, the non-fungible token (nft) The rewards program implemented by Algorand saw notable success, leading to a significant 321% increase in nft-related transactions compared to the previous quarter.
This program, initiated through a governance vote in the second quarter, allocated 500,000 ALGO in rewards to nft market users to stimulate activity.
Additionally, during the third quarter, Algorand saw an increase in user adoption, adding 1.1 million new directions and witness a 2% increase in total daily average transactions compared to the previous quarter.
However, Algorand total stablecoin market Capitalization faced a 58% decline in the third quarter, largely attributed to the declining market capitalization of stablecoins on the platform. Despite this, USDC (USD Coin) surpassed USDT (Tether), accounting for 76% of the stablecoin market cap.
In it decentralized finance (DeFi), Algofi, Algorand’s largest DeFi protocol by Total Value Locked (TVL), began shutting down operations in July.
As a result, Folks Finance emerged as the dominant DeFi protocol on Algorand, capturing 55% of DeFi TVL in Q3. Algorand’s quarterly revenue, including fees charged by the protocol, grew 25% in ALGO terms; however, it decreased by 23% in USD terms due to the average daily price of ALGO.
Algorand’s governance stake saw an 8% decline in the third quarter, accounting for 30% of circulating supply. The platform’s network upgrade in the third quarter enabled higher performance, lower blocking time, and support for quantum-safe interoperability through State Proofs.
Looking ahead, Algorand has announced plans to release AlgoKit 2.0, a developer-focused tool that aims to simplify the developer experience. It also intends to change its network topology to a peer-to-peer design and transition to an incentivized consensus economic model in 2024.
ALGO struggles to break key resistance
Regarding price action, SOMETHINGwhich currently ranks 53rd among the largest cryptocurrencies in the market, has faced challenges amid the recent bullish surge in most cryptocurrencies.
The token is currently trading at $0.1217, seeing a drop of over 7% in the last 24 hours. Despite this pullback, ALGO has shown impressive gains in other time periods.
Over 7 and 14 days, ALGO recorded significant gains of 10% and 21%, respectively. The best performance was recorded in the 30 days, with an increase of 28%.
However, ALGO has faced a drop of over 62% so far this year, in contrast to the majority of the cryptocurrency market, where major cryptocurrencies have nearly doubled in value since the end of crypto winter.
Additionally, ALGO has struggled to break above its 200-day moving average (MA), a significant resistance level. This has resulted in the recent pullback, preventing the token from reaching levels not seen since July, where it hit $0.1364.
ALGO’s future trajectory remains uncertain. It will depend on the continued evolution and growth of its ecosystem to push the token towards its yearly high of $0.2898, reached in February. Alternatively, ALGO may consolidate below its moving averages.
Featured image from Shutterstock, chart from TradingView.com
