While major cryptocurrencies like Bitcoin and Ethereum are trading in the red, Algorand price continues to post gains. Over the last day, this cryptocurrency has been one of the best performing assets in the industry.
At the time of writing, Algorand price is trading at $0.36 with a gain of 14% and a gain of $21 in the last 24 hours and 7 days respectively. The cryptocurrency’s performance during this period was surpassed only by XRP with a gain of 28% and Chiliz (CHZ) with a gain of 29%.
ALGO’s price rallying on the 4-hour chart. Source: ALGOUSDT trading view
Algorand Price responds to ecosystem developments
Data from DeFi Llama suggests that the short-term rally in Algorand price is being supported by a surge in network activity and ecosystem growth. Over the past week, Algorand’s Total Value Locked (TVL) has followed the price up 13%, or $250 million in entering the network.
Algorand’s TVL growth has outperformed Binance Smart Chain, Stellar Network, Arbitrum, Avalanche and others. This trend appears to be due to an increase in development activity in Algorand.
Additional data from research firm Santiment shows that Algorand was the 4th blockchain in terms of activity on a weekly timeframe. Outperformed by Ethereum, Polkadot, and Solana, Algorand has seen over 70 projects build on its ecosystem.
Source: Santiment via Polkadot Insider
This coincides with a number of partnerships and projects announced for the ecosystem. Most important appears to be a collaboration with the Federation International Football Association (FIFA) to host a non-fungible token (NFT) and marketplace.
In the coming months, FIFA will celebrate the World Cup with the best football teams in the world. This event attracts the attention of millions of fans around the world. The Algorand-based project, called FIFA Plus Collect, will offer people a unique experience by allowing them to “own the greatest moments in football history”.
The FIFA+ Marketplace is now live! Start building your personal collection and become part of the richest and most authentic football legacy of all time. Enjoy the FIFA+ Collect experience. https://t.co/gRoXHzhVHJ #fifa #fifaplus #fifapluscollect #algorand pic.twitter.com/SWJzDCjbve
— FIFAPlusCollect (@FIFAPlusCollect) September 22, 2022
Can ALGO maintain its profits?
Alongside key partnerships and development activities, the Algorand price appears to be responding positively to a mainnet network upgrade. This update, implemented with AVM 7, aims to bring quantum security to the blockchain with an improvement in smart contract functionality.
The announcement seems to have caught the attention of market participants. Algorand price performance appears to be a translation of upgrade and network activity.
At the time of writing, Algorand’s price is facing strong resistance at its current level. To sustain the current bullish momentum, the cryptocurrency needs to surpass three critical levels: $0.36, $0.43, and $0.51.
The current state of the crypto market could limit ALGO’s price rise. The market is reacting to macro forces, but if Bitcoin and Ethereum can reach higher levels, Algorand could gather enough momentum to break out of resistance.