Algorand price rose more than 20% as the overall crypto-bullish sentiment seeped into the layer-1 blockchain’s ecosystem.
The ALGO token traded to highs of $0.47, the highest price level since Dec.10, 2024, when bears pushed bulls over the edge.
After trading to lows of $0.32 in early January, Algorand price retested the crucial $0.40 zone before the bullish flip that pushed Bitcoin to $100k again helped most altcoins higher.
Algorand price rises 12%
ALGO price is outpacing most coins in the top 100 by market cap. Although the altcoin has pared some of the upside seen in the past 24 hours, it’s largely in positive territory. With more than 30% in the green over the past week, Algorand is also one of the top trending coins in the market.

In terms of daily trading volume, the cryptocurrency has experienced a notable 133% spike to over $653 million.
Gains saw Algorand rank as one of the top-performing coins on the day,outpacing the surging XRP and XLM. Algorand also saw more gains than Litecoin, which rose amid ETF-related news.
What could drive prices higher?
According to Santiment, three key factors related to political and economic events are behind the market surge.
The market is also likely to rally due to these factors. It includes Donald Trump’s upcoming inauguration on January 20, 2025, the new SEC policy approach to crypto once and the US Fed’s next move in relation to interest rates.
Following the Fed’s hawkish outlook at the last FOMC meeting, the market has reacted positively to the encouraging consumer price index report. Geopolitical events, including the Israel and Hamas ceasefire, are also key factors.
For Algorand in particular, the imminent launch of staking rewards on the mainnet has attracted a bullish reaction.
The latest upbeat mood is down to the release of Algorand V4.0.1, a stable release that introduces incentives for consensus participation with ALGO.
Algorand V4 highlights native ALGO rewards on the Algorand protocol, with parameters such as payout percentages, minimum or maximum balance requirements and validator behaviour thresholds.
Is ALGO price going to $1?
Algorand rose to its all-time high of $3.28 in 2019 and managed highs near $2.5 during the 2021 bull market.
However, the altcoin has struggled since, with the SEC’s regulatory actions in the past few years adding to the downward pressure.
The surge in late 2024 and the latest upside nonetheless have bulls targeting a fresh breakout.
ALGO/USD’s reaching highs of $0.47 eclipsed the peak seen in the past year, with the coin up more than 130%.
Algorand’s market cap has jumped above $3.7 billion, while Coinglass shows open interest has reached $149 million, up more than 24%.
Bitcoin’s potential surge to a new all-time high amid the above catalysts will mean new buy pressure for ALGO.
In an altcoin season, Algorand’s bulls will retest and surpass the $1.
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