A popular crypto analyst claims that major Ethereum (ETH) rival Algorand (ALGO) is displaying a number of worrying signs.
Citing research from crypto analytics firm Messari in a new YouTube video, the host of InvestAnswers tells his 444,000 subscribers that large holders own 99.7% of Algorand, a much higher rate than other ETH rivals such as Solana (SOL).
“That is kind of scary. If you compare that to something like Solana, large holders own 30%, and that’s about to go down a lot less because of what happened. It’s going to be like 20%. And that is equivalent to the large holders for Ethereum right now.”
The host also notes that Algorand’s daily active users number nearly 79,000, which he says is “not bad.” But that doesn’t tell the whole story, according to the analyst.
“When you look at the trend of the last 12 months, it has flatlined… Zero growth, for me, is bad, especially in a space like crypto that’s growing so fast and being adopted so fast.”
Additionally, the InvestAnswers host says Algorand’s inflation presents another potential negative factor.
“The inflation as of September 2021 was 19.42%. Over the last 365 days, it was exactly 16%, which is high. Not the worst, but definitely nowhere near the best.”
ALGO is trading at $0.26 at time of writing. The 30th-ranked crypto asset by market cap is up 7.51% in the past 24 hours.
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The post One of Ethereum’s Top Rivals Showing Several Concerning Signs, According to Top Crypto Analyst appeared first on The Daily Hodl.
