Why is Algorand Rallying Double Digits Over the Week?
While the crypto markets struggle to climb out of their slump, some tokens are rallying big in the greens. Over the past one week, XRP and Algorand (ALGO) are most notably pushing double-digit gains. XRP is up by 12% in the last 24 hours, and up by 49.4% in the last week. Algorand (ALGO) is up by 25.8% in the last week. This points to a stark difference when compared to industry giants like Bitcoin (BTC), which is down by 4% in the last week, and Ethereum (ETH), which is down by a whopping 12% in the last week.
XRP’s rally is most likely due to the SEC vs Ripple lawsuit which by the looks of it is inclining towards the defendants. Investor optimism seems to be on the rise as the lawsuit progresses. Furthermore, large whale movements may have also contributed to the token rallying big.
Now there are two primary factors that may be contributing to Algorand’s current rally, which we will look into in the subsequent section.
What’s pushing Algorand?
In May, FIFA announced its partnership with Algorand as the official blockchain partner for the upcoming FIFA 2022 World Cup. Interest in Algorand has increased as we move closer to the tournament’s kick-off. Moreover, FIFA recently launched its official World Cup NFTs (non-fungible tokens). This may have further boosted investor sentiment. According to IntoTheBlock, new users are flooding Algorand as the new NFTs take off.
The second reason for ALGO’s growth can be attributed to the increase in the project’s user base and total value locked (TVL). The blockchain analysis firm notes that the number of new addresses making their first ALGO transaction increased from 5k to 20k in three months.
ALGO CTO John Woods recently tweeted Algorand’s new milestone of another all-time high TVL.
At press time, ALGO was trading at $0.372591, up by 0.9% in the last 24 hours.
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