A few coins such as Algorand are the exceptions to this downward trend in crypto markets. The pace of macroeconomic events is causing cryptocurrencies to drop in value. Due to this bearish trend the main crypto asset has dropped below critical support levels.
The US Federal Reserve reaffirmed its policy of controlling rising inflation after the FOMC meeting on Wednesday, September 21. The FOMC’s decision resulted in the increase of interest rates by 75 basis point.
As interest rates rise, crypto assets are becoming less expensive. The price crash is causing the bears to gradually overtake the market. Algorand’s native token has beaten the trend and stands out from the rest.
Bearish Sentiment Defiled by Algorand
ALGO’s positive performance was more prominent than other assets, which is why they are selling under the pressure of bearish sentiment. At the time this article was written, ALGO’s price is $0.3816. This is a substantial gain.
Surprisingly ALGO’s growth rate has exceeded 20% during the last 7 days. This remarkable feat from Algorand came through the blockchain’s performance which recorded up to 6,000 TPS. MasterCard boasts 5,000 TPS, but this value surpasses MasterCard’s.
Other tokens in the market are far behind Algorand’s outstanding performance. BTC was also affected but managed to stay afloat. Ethereum fell by more than expected, but it is trending in the opposite direction. Its performance post-merge is below expectations. After it switched to PoS, ETH fell by over 20%. Ether trades at $1,323.
Comparing Algorand’s price increase and Ethereum pot-merge performance gives a sharp contrast. While ALGO gained 20% over the Merge, ETH lost 20%.
Algo High Performance Reasons
Algorand uses blockchain technology to create a consensus system that is proof-of-stake. Algorand’s protocol is free from trilemma problems, which allows it to achieve security, decentralization and scalability. It also demonstrates its greatest strength, which is environmental sustainability.
Algorand’s main selling point was its speed. The network was capable of handling up to 6 000 TPS, according to Algorand. This surpasses MasterCard’s functionality, which can handle approximately 5,000 TPS. Algorand’s blockchain is extremely fast, taking just 3.7 seconds from finality to block production.
It just gained another technical win to add to its status in the crypto-space. Algorand also offered State Proofs through its blockchain. Algorand can now digitally sign messages with a more distributed approach thanks to this addition.
Reacting to the new move, Algorand’s co-founder, Silvio Micali, stated the importance of having state proofs. It would increase the security of the blockchain from quantum attacks, he said. The guarantees also provide decentralized connections with other chains, according to Micali.
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