Algorand: The Sleeping Giant of Layer 1 Blockchains? Data Shows Strong Fundamentals

Algorand stands out in the crowded Layer 1 blockchain space with its impressive performance metrics, but price action lags behind, according to IntotheBlock data.

Renowned for its high capacity, fast transaction finality, low fees, and carbon-neutral stance, Algorand boasts over 54,000 daily active addresses, surpassing networks like Dogecoin (52,000) and Avalanche (48,000), and ranks fifth in active users among leading protocols.

Transaction activity on Algorand has surged, doubling since late 2023. The current seven-day average is 1.36 million transactions per day. Notably, most transactions are small, with 96.43% valued at under $1, likely driven by automated transactions and smart contract interactions.

ALGO tokens are held, on average, for nearly 11 months, signifying substantial holder confidence. This holding period exceeds Avalanche’s 5.9 months and nearly matches Cardano’s one-year average. The network’s large holders, who control 20.7% of the total supply, have increased their holdings from 19.4% since May, suggesting ongoing accumulation and potential confidence in future growth.

Despite the robust network activity and confidence from large holders, most ALGO holders are currently at a loss, with only 9% in profit at current prices, according to IntotheBlock.

“Algorand’s active user base, increasing transaction activity, and the confidence shown by large holders indicate solid fundamentals. Nonetheless, price development has been slow, with only 7% of its holders currently in profit.”

Additionally, Algorand’s low transaction costs, typically around 0.001 ALGO per transaction, make it highly economical for high volumes of transactions.