Algorand broke all its previous records as its price jumped by a whopping 91.4% in the last week. On September 9, the token skyrocketed to a new all-time high of $2.47 while its daily trade volume hit $4.83 billion.
Institutional interest and El Salvador’s endorsement have certainly contributed to the recent gains, however, the project’s own efforts to get community attention have also played an important part.
In the crypto world, adoption is the true standard of a project’s success and one blockchain that has profited from a recent surge in adoption is Algorand. The token has posted simultaneous gains over the past week and reached a new multi-year high.
The rapid increase in ALGO prices was triggered by El Salvador’s adoption of Bitcoin as legal tender. That’s because, behind the scenes, Algorand is helping the country build its own blockchain infrastructure.
The network has gradually risen to prominence among institutional investors and governments for its work with digital currencies. It has also been selected to host stablecoins Tether and USDC.
However, El Salvador’s endorsement is the most important development for Algorand as it can attract other governments and institutions in the long term.
Another significant factor driving up Algorand’s price is the upcoming launch of new governance features on October 1. The new measures are expected to give token holders more rights in the project’s development.
Additionally, Algorand developers are working on decentralized finance (DeFi) and nonfungible token (NFT) applications that will cater to users who want to experiment with NFTs but are held back by Ethereum’s high transaction costs.
At the time of writing, Algorand has retraced some of its gains and is trading at $2.11. Although this isn’t a significant pullback, it remains to be seen if El Salvador’s faith in the network will pump the price any further.