Algorand (ALGO) has become a hot topic following reports about the blockchain’s adoption in El Salvador and Colombia. Its shift to a community governance model and the recent launch of Algorand's DeFi fund have also put ALGO on many investors' radar. What's Algorand's 2025 price prediction? Is it a good investment?
Algorand, a programmable blockchain where developers can build apps, is an "Ethereum killer." Cardano and Solana, also major Ethereum rivals, have surged recently as well. Whereas Ethereum is struggling with a congested network that drives up its transaction fees, Algorand, Cardano, and Solana are promising better solutions.
Why is Algorand (ALGO) going up?
As investors are excited about the Algorand blockchain’s prospects, they've rushed to accumulate its token. ALGO rose 7 percent in morning trading on Sep. 13, to $2.25. It gained even as the crypto sector was down, with Bitcoin, Ethereum, and Cardano tumbling 3, 5, and 9 percent, respectively. ALGO’s latest gains follow e-Money’s integration with Algorand to support European stablecoins.
But ALGO then reversed course and declined 12 percent as some investors took early profits.
Algorand to power El Salvador's blockchain infrastructure
After making Bitcoin its official currency, El Salvador is going deeper into the crypto world. The country signed Koibanx to help it build a blockchain infrastructure on the Algorand blockchain. The country’s official crypto wallet Chivo also uses Algorand technology.
Algorand blockchain to underpin Colombia’s COVID-19 vaccine passport
The Colombian government has adopted technology based on the Algorand platform for its COVID-19 vaccine program. The technology will help record and certify Colombians' COVID-19 immunization status.
Is Algorand (ALGO) a good investment?
There are many reasons to like ALGO. First, it ranks among the best-performing major altcoins year-to-date, gaining more than 500 percent. Given that Ethereum rivals Cardano and Solana have gained 1,200 and 10,000 percent this year, respectively, ALGO looks like it has room to run.
Furthermore, the foundation overseeing the Algorand blockchain has launched a $300 million fund to fuel DeFi innovation, going toward projects building DeFi apps on Algorand. SkyBridge is also backing those efforts with a $250 million fund. The DeFi sector is booming, and Algorand looks positioned to take advantage of the opportunity.
Algorand is following ShapeShift in the transition to a decentralized structure model. Starting in Oct. 2021, the Algorand community will be leading the project’s decision-making. Those holding ALGO will have the right to influence how the project runs.
Algorand's (ALGO) price prediction for 2025
The highest ALGO has attained is $3.28, 36 percent above its current price. Algorand’s monthly gains have averaged 70 percent in 2021. Even if grows just 5 percent per month, ALGO could reach $30 by 2025.