In a recent report analyzing the second quarter performance of layer-1 (L1) blockchain network Algorand (ALGO), data analytics firm Messari highlighted several notable milestones the network achieved during the period, with a record number of transactions being one of the most notable.
Rapid network growth
One of the main metrics Notable was the massive increase in Algorand’s average daily transactions, which surged 104% to 4.7 million. Total transactions registered a modest 6% increase quarter-on-quarter, to 425 million.
Despite this increased transaction volume, Algorand’s revenues took a hit, falling 61% to $152,000. The report attributed this to a 46% drop in the value of Algo against the US dollar compared to the previous quarter. Although Average transaction Fees rose 44%, but overall dollar revenue remained low.
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The 61% drop in quarterly revenue was also attributed to the correction following ALGO’s 1,747% surge in Q1, driven by a daily surge of 43 million transactions linked to the ORA memecoin project.
However, on a year-over-year (YoY) basis, Algorand’s earnings profit It saw a massive increase of 1,241%, rising from $11,000 to $152,000.
On a positive note, Algorand achieved a significant milestone of 2 billion transactions during the quarter, reflecting the network’s growth and adoption. It is worth noting that the network took four years to reach its first billion transactions, while the second billion was reached in just one year.
Algorand share falls to lowest level in a year
In Q2 2024, the number of ALGOs deposited on the Algorand network fell by 38% year-over-year and 6% quarter-over-quarter, reaching a record low of 1.6 billion ALGO deposited in a single year. Messari believes this could be due to a decrease in the rewards allocated per governance period.
The percentage of Algorand’s eligible supplies that were bettor Algorand’s trading volume decreased by 4.7% on a quarterly basis to now stand at 20.2%. At the same time, Algorand’s circulating supply increased by 1.2% to 8.2 billion ALGO.
Finally, the data shows that the market cap of stablecoins on Algorand increased by 15% QoQ, rising from $73 million to $85 million, driven primarily by a 32% increase in the market cap of Circle’s USDC stablecoin, which now accounts for 78% of the total stablecoin market cap on Algorand.
Conversely, the market cap of Tether’s USDT fell by 22%, making up 21% of Algorand’s market cap. Stablecoin Market ShareThe market cap of EURD remained at 1% of the market cap of Algorand stablecoin.
ALGO Price faces a critical moment
ALGO has seen significant price gains in recent weeks after a tough second quarter for the price and the broader market. CoinGecko Data The data shows that the token has seen a 14% price increase in the past two weeks and 12% in the past seven days alone.
This has led to ALGO trading at $0.1357, just below its 200-day exponential moving average (EMA), marked by the yellow line on the daily ALGO/USDT chart below, which is currently acting as a wall of resistance For the symbol.
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It will be necessary to remove this obstacle for the possibility of continuing the upward trend of the price in the coming days and establishing the same support in the near term in case of a correction.
Featured image by DALL-E, chart by TradingView.com
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