Will Algorand’s decentralization stimulant drive ALGO to achieve new highs
Algorand [ALGO], as of 22 September, was able to outperform most of the cryptocurrencies thanks to the recent “State Proofs” activation. At press time, ALGO was 12.74% up as it rallied to $0.3578 per CoinMarketCap data.
Interestingly, the price was not the only area that was affected. The price tracking platform showed that ALGO had also witnessed a surge in volume, recording a 45.26% uptick in the last 24 hours. Beyond the price, how exactly did this development affect the ALGO ecosystem?
No interference, only decentralization
While making the announcement, ALGO’s founder noted that the State Proofs would enable ALGO link with bridges without any intermediaries.
State Proofs are now live! This technology enables the construction of decentralized bridges, allows nodes to join our consensus process without having to trust any “initializing” information, and makes @Algorand quantum-safe, all while prioritizing decentralization. GO ALGORAND!
— Silvio Micali (@silviomicali) September 21, 2022
The founder also stated that State Proofs were extremely helpful. He added that the new integration would assist in preventing Algorand from quantum attacks in the Medium post attached.
These attacks are strikes aimed at disrupting public-key cryptosystems. Overall, the proof would allow the ALGO community to own digital signatures that are publicly verifiable.
In light of the news, certain on-chain metrics of the ALGO chain began to react. While the development activity dropped further, the NFTs metrics preferred the other route. According to Santiment, ALGO’s NFT trade volume increased from $186,000 on 21 September to $606,000 at press time.
Additionally, as for the whale supply percentage, there were no positives to pick up from it. However, further indications proved that the ALGO community may have taken its NFT parts seriously.
NFTs that were worth more than $100,000 had no activity between 19 and 20 September. But as of the period of the State Proofs addition, transactions increased to $346,000.
Will the fire keep burning?
Now that the creator economy token stood in the greens, will it remain so over the next few days? Well, the Relative Strength Index (RSI) showed that ALGO’s momentum was still on the rise.
At the time of this writing, it was heading towards the overbought level at 69.48. If it increases further, there could be a reversal, which in turn could affect the price.