A widely respected cryptanalyst reveals what he thinks he can push forward Ethereum challenger Algorand (ALGO) to a new one all-time high.
In a new video, the host of the popular YouTube crypto channel Coin Bureau tells his 2.04 million subscribers that the Algorand smart contract platform is currently facing a number of fundamental challenges, including the exponential growth of ALGO’s offering in the market.
“The first is Algorand’s apparent lack of user adoption. Almost every smart contractcryptocurrency, which I’ve been covering lately, has seen exponential growth in its user base in just the past few months, but that exponential growth isn’t as evident with Algorand. I suspect this is because the Algorand wallets used to interact with their DApps [decentralized applications] aren’t nearly as familiar or as user-friendly as other browser extension wallets like Metamask.
It also doesn’t help that ALGO’s price has consistently underperformed, and that ties into the second challenge.
Algorand’s tokenomics are still not that great, and it seems that the end of accelerated transmission didn’t help ALGO’s price action at all for ALGO’s early investors. To make matters worse, the supply continues to hit the market. In fact, in a January presentation, former Algorand Foundation CEO Sean Lee celebrated the fact that the offering of ALGO increased from 1.4 billion to over 6.3 billion in 2021 alone.”
The Coin Bureau host also says the problems are compounding because there is insufficient demand for ALGO.
“The main reason for the low demand for ALGO is that Algorand has focused its attention on serving institutions and institutional investors rather than consumers and investors. As far as I can tell, Algorand has been trying to take their institutional catering to Michelin star levels with their overtly aggressive drive to be green.”
Despite these issues, the crypto analyst says the smart contract platform could hit new record highs if its strategy of targeting institutional investors works.
“Algorand still has a few things to work on, but if its focus on institutional acceptance proves fruitful, it could create the demand ALGO needs to finally surpass its previous all-time highs.”
Check the price action
Source: Crypto News Deutsch