In the crypto market, the prices of two cryptocurrencies are sometimes related. So, this might be the case for Algorand (ALGO) and Ethereum if the latter hits $4,000. Since the inception of ALGO, it has had many integrations and connections with the ETH network. Nevertheless, let’s take a look at how the price of ETH might influence that of Algorand.
Algorand (ALGO) Presents an Opportunity
Algorand (ALGO) presents itself as one of the cryptocurrencies with massive potential. So, the major focus of this crypto project is decentralized algorithmic trading. Furthermore, one of their major aims is to help reduce the stringent stress undergone when trading. Apparently, what sets them apart from the rest is that it speeds up transactions and improves efficiency. This is unlike Bitcoin and other older crypto blockchains.
Moreover, the design of Algorand (ALGO) helps it offer lower transaction fees to traders. Using the permissionless pure proof-of-stake (PoS) blockchain protocol ensures there’s no energy-intensive process.
Algorand Price Performance in the Market
With Bitcoin increasing massively to more than $63k, Algorand (ALGO) is also having its own share of growth. So, in the past few days, the valuation of this cryptocurrency has consistently stayed above $2 billion. Furthermore, the trading volume is becoming massive as investors splash as much as close to $200 million.
In return, the price of this token is seeing incredible gains. At the time of writing, there’s more than a 3% increase in the 24-hour chart. Furthermore, a 20x surge in the past seven days means investors are smiling at the bank. Price speculations from experts show they could be more. But this might have a connection with Ethereum.
Ethereum Connection with ALGO
Ethereum reaching the $4,000 mark could be a positive milestone for Algorand (ALGO). So, since ETH is the apex altcoin, reaching this level could mean subsequent increments for other altcoins like ALGO. Moreover, ETH and ALGO share more connections than this.
On Feb. 17, 2022, the Algorand Foundation announced a $10M grant that made them compatible with Ethereum. So, this development brought low transaction fees, low latency, and more liquidity to the project. Apparently, this shows the numerous benefits ALGO receives from the Ethereum network. If ETH should reach the $4k mark, it could probably give ALGO another surge to $0.30.
Nevertheless, it is important to point out that data from IntoTheBlock shows ALGO might be bearish. Despite the massive greed in the market, a large chunk of ALGO holders are still making profits. So, only about 20% of the token holders are seeing some form of profit in the current crypto market. This is quite bad. However, it might improve depending on how bullish altcoins are.
Wrapping Up
ALGO and Ethereum are two cryptocurrencies that might be having a massive connection. According to basic analysis, ETH reaching $4,000 could open up a lot of room for other altcoins. Furthermore, reaching this milestone could mark another altcoin bull market, which could benefit ALGO. Since Algorand shares a bridge with Ethereum, it is probably one of the first cryptocurrencies that will benefit from Ethereum reaching $4k.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
