Important crypto news for Algorand (ALGO), the blockchain-based cryptocurrency that aims to be secure, scalable, and decentralized, has shifted its focus to interoperability and post-quantum technology.
In all this, ALGO bulls maintain control over the market while bears remain subdued. Below are all the details.
The priorities of crypto Algorand (ALGO).
As the blockchain industry continues to flourish and advance, there are undeniable challenges that need to be addressed. These have shaped the priorities for leading blockchains, including Algorand.
Algorand has, in fact, recently revealed that it has two main goals in the near future: interoperability and post-quantum security. The news is also reported on the crypto’s official Twitter profile:
"We have two key goals: Interoperability & exchange between the #Algorand network and others, and post-quantum security." –@ChrisPeikert
Watch the full video from #Decipher2022: https://t.co/R3REApEE6f pic.twitter.com/KOhgUo5WaN
— Algorand (@Algorand) February 3, 2023
Interoperability is a necessity for a smoother value stream. Otherwise, a highly fragmented ecosystem will be highly inefficient. Fortunately, there are also numerous networks working to solve the interoperability challenge.
In addition, Algorand recognizes that quantum technology is advancing at a rapid pace. Perhaps at a level that could undermine the decentralized model of blockchain technology. This is why Algorand is actively pursuing measures that will increase security against attacks executed using quantum computers.
Focus on ALGO’s pricing: among January’s best performers
Algorand’s native crypto, ALGO, remains among the best-performing cryptocurrencies since the beginning of January. Its price of $0.267 represents a 68 percent rise and is up 17 percent since the beginning of February.
Also interesting is the fact that ALGO still presents room for further upside before interacting with the 200-day moving average. The latter may act as a psychological selling zone. However, one wonders whether ALGO can sustain the uptrend, especially now that its RSI is showing relative weakness and price-RSI divergence.
From a metrics perspective, we see that the weighted sentiment is currently in favor of the bears. The probability of a sizable bearish retracement is higher with such investor sentiment, especially now that the price has risen.
In this sense, the demand for derivatives may offer some clearer insights. Both Binance and FTX funding rates remain within the upper range and no pivot has been observed so far. This confirms that there is no incoming selling pressure from the derivatives segment.
In any case, one potential reason for the absence of bearish volume is the fact that ALGO is still recovering from the recent increase in selling pressure. Instead, we have seen an increase in bullish volume in recent days.
There is one key metric that explains ALGO’s excellent performance. If we look at its total value locked (TVL) we observe a strong increase since the beginning of the month. This confirms that a large percentage of the ALGO purchased this year is now pointed within the Algorand ecosystem.
Although these results point to a stronger network state, it is unclear whether ALGO will maintain the rally. The market is currently in a resistance range, which means things could go either way.
The announcement of crypto Algorand (ALGO): definitive momentum toward DeFi?
As we know, Algorand revealed a new development back on January 19, which could highlight a potential strategy to tap into growth through DeFi.
Indeed, the blockchain network has revealed that the C3 protocol has implemented a new self-custody exchange called “C3”.
As noted on Twitter:
.@C3protocol announced C3, a self-custodial exchange providing a secure, transparent, and trustless platform for trading.
Learn more 👇https://t.co/CtvqSek4HY
— Algorand (@Algorand) January 19, 2023
The topic of self-custody, which became increasingly popular in 2023, was central to understanding this partnership. 2022 was rampant with the fall of cryptocurrency exchanges. In addition, the community witnessed the cracks and risks in custody and centralized exchanges.
The launch of C3 could likely encourage self-custody and allow Algorand to tap into the DeFi segment. The latter could be one of the fastest-growing segments, and this move by Algorand could put it in a position to take advantage of that growth.