Algorand Q2 2024 Brief

Key Insights

Performance Analysis

Algorand’s average daily transactions surged by 104%, reaching 4.7 million, while total transactions recorded a modest 6% QoQ increase to 425 million. Despite this heightened activity, revenue dropped by 61% to $152,000, primarily due to a 46% depreciation in ALGO’s value against the USD compared to the previous quarter. Even though the average transaction fee rose by 44%, dollar revenue still declined. The significant 61% drop in quarterly revenue can also be attributed to a correction following a 1,747% surge in Q1, driven by a one-day spike of 43 million transactions linked to the ORA memecoin project. Nevertheless, on a YoY basis, revenue saw a remarkable 1,241% increase, climbing from $11,000 to $152,000. On its 5th anniversary, Algorand reached a significant milestone of 2 billion transactions. The network took four years to achieve its first billion transactions, while the second billion was reached within just one year.

In Q2 2024, the amount of staked ALGO on Algorand fell by 38% YoY and 6% QoQ, reaching its lowest level in a year at 1.6 billion ALGO staked. This downturn can be partially attributed to the diminishing rewards allocated per governance period. The percentage of eligible Algorand supply being staked decreased by 4.7% QoQ, now standing at 20.2%. Meanwhile, Algorand’s circulating supply increased by 1.2%, reaching 8.2 billion ALGO. For more context, governance participants were awarded 56.3 million

The market cap for stablecoins on Algorand increased by 15% QoQ, rising from $73 million to $85 million. This growth was primarily driven by a 32% increase in USDC’s market cap, which now accounts for 78% of the total stablecoin market cap on Algorand. Meanwhile, USDT’s market cap dropped by 22%, making up 21% of Algorand’s stablecoin market share. EURD’s market cap remained at 1% share of Algorand’s stablecoin market cap.

Market Cap

Qualitative Analysis

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