Algorand worth buying in anticipation of a future boom?

algorand

In a cryptocurrency market with an increasingly negative mood, the crypto community is debating whether there might still be tokens worth buying, taking advantage of the “bargain” prices of many cryptocurrencies, whose prices have almost dropped by an average of more than 50% from their November highs. 

Such is the case with a recent tweet by Entrust Algo, who stated via Twitter how buying Algorand’s token now would be like buying ADA when it was at 0.06 cents (it is now at 0.45, but has also exceeded $3)

In the face of such confidence, which seems to be a tad too optimistic considering the mood of the markets marked by mere pessimism, the member of the Cardano community “ADA whale” responded promptly, stating that Algorand has yet to prove what instead the Cardano blockchain seems to have already shown in the last two years.

The accusation is not new, not least because the crypto world has long considered Algorand to be one of Cardano’s main rivals, which in turn considers itself to be one of the biggest competitors to the Ethereum blockchain.

The curious fact is that the same “entrust Algo”, in September 2021, always via Twitter, had made a prediction on the price of the Algo token, which proved in fact to be completely wrong. The prediction mentioned a price for Algo in the range of $3 to $5 by the end of the year or early 2022 at the latest. Now the token is around 0.3 cents, and its high in the period under consideration has never touched $3, and after touching two euros it has slowly slipped to its current prices.

But let’s take a closer look at what they are and what similarities and differences these two blockchains have, both of which represent an alternative to Ethereum, in particular for the flourishing DeFi and NFT markets.

Cardano (ADA) is a public blockchain platform very similar to Ethereum, It is quite recent, but is perhaps one of the largest DeFi protocols to operate with the Proof of Stake (PoS) mechanism which is cheaper and more sustainable than the Proof of Work mechanism of Ethereum and Bitcoin. 

Algorand (ALGO) is a blockchain that a few months ago, like Solana, Avalanche and Polkadot, was considered one of the “Ethereum killers”, precisely because of its characteristics of being more sustainable, more scalable and cheaper. The Algorand blockchain is one of the fastest (4 seconds per transaction) and one of the cheapest currently on the market. Algorand also uses the PPoS (Pure Proof of Stake) consensus mechanism, which randomly selects a token holder as the producer of the blockchain. The proposed block is approved by a committee of 1000 randomly selected token owners and then added to the blockchain.

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