- The University of Florida has announced a partnership with Algorand to explore its advanced layer-1 proof of stake blockchain
- Algorand is beginning to make its mark in the DeFi sector, with the launch of dApps and a GameFi project, which raised $2.3 million in funding
- TxnLab has also announced the development of an Algorand Non-Fungible Domain set to launch in Q2
- Grayscale has added ALGO, which currently trades at $0.953, to its tokens under consideration
Algorand is a decentralized network built to simultaneously solve the blockchain trilemma of achieving speed, security, and decentralization. Algorand’s permissionless and open-source blockchain has been used in real estate, copyright, microfinance, and more.
In September 2021, the carbon-negative blockchain network made headlines after the government of El Salvador chose Algorand to build government blockchain infrastructures. So, how has Algorand fared in recent times?
Solving the blockchain trilemma, the Algorand blockchain has become one of the most preferred by developers. As a result, Algorand Foundation recently announced a partnership with the University of Florida to develop the Blockchain Lab.
According to the announcement, the development of the blockchain lab will be powered by the Algorand blockchain. As part of the one-year partnership, Algorand will build a robust program to support blockchain education with specific usage of Algorand’s tech.
Algorand’s blockchain is also being used by a number of central banks from around the world in the development of Central Bank Digital Currencies (CBDCs). Algorand recently announced the launch of a CBDC Dashboard.
” This model allows us to simulate realistic payment flows that the dashboard visualizes. This will help policymakers to better understand the design choices they have when designing a CBDC.”
Another area where Algorand is increasingly becoming popular is among decentralized finance (DeFi) protocol developers. As Algorand’s DeFi space grows, DappRadar has announced it now tracks Algorand dApps.
As Algorand’s footprint in the DeFi sector grows, Zone, the first GameFi project on the Algorand blockchain, raised $2.35 million in new funds before going on to launch its initial dex offering on January 15.
Algorand’s prospects have caught the attention of global asset manager, Grayscale Investment. In a recent announcement, Grayscale lists Algorand’s native token, ALGO, as one of the tokens under consideration to be added to the digital assets it holds.
Algorand has announced that an NFT marketplace is currently being built on its blockchain. On January 21, TxnLab announced it had raised $1.25 million, which it would use to build Algorand’s name service and marketplace.
According to TnxLab, Algorand’s first NFT marketplace will launch in Q2 2022. In addition, resources are also being used to build and scale a robust name and identity solution, Non-Fungible Domain, to benefit the Algorand community.
Before NFD launches, Algodrop has announced that an NFT platform will be launching on Algorand on January 30. The NFT platform created by Monkelab promises to change the Algorand NFT scene forever.
Algorand’s recent performance reflects the struggling crypto market, as fears of interest rate hikes and increasing inflation have led to major sell-offs. Despite gaining 2% over the last 24 hours, Algorand has suffered major losses since the start of 2022.
The 24-hour price chart of Algorand (ALGO). Source: Tradingview
Algorand currently trades at $0.953, unable to hold its ground above the $1 mark. Algorand is currently ranked as the 25th largest cryptocurrency, with a market cap of $6.22 billion.
On the Flipside
- Despite its recent push into decentralized finance, Algorand ranks as a newcomer, with only $3.4 million locked in four dApps
- In addition, compared to the tokens of other DeFi chains like ETH, SOL, and LUNA, ALGO has been rated as more overvalued
Algorand’s unique solution to the blockchain trilemma has created a community of strong followers. Furthermore, Algorand’s decentralized framework also ensures that its community members are part of the decision-making of the project.
The ALGO community now consists of great believers in the project who see Algorand as the future of DeFi. One user, John Busch, wrote about Algorand:
@NJVM22 shared his thoughts about Algorand:
I honestly think the only thing Algorand is missing is HYPE.— Neyu (Ⱥ) (@NJVM22) January 19, 2022
Everything else is there: smart contracts, scalability, low fees, carbon negative, decentralization.
Just needs a bigger crowd.
Despite the downtrends that have struck the crypto market, @neilstucky1 writes:
Why You Should Care
Solving the blockchain trilemma of security, scalability, and decentralization, Algorand is an interesting prospect for the future, especially as it employs its uniqueness to transform the nascent DeFi sector.