Another player is likely to join the battle for the king of the DeFi sector. This time it is a project, which has recorded huge volumes and gains in recent days, Algorand. As for DeFi projects, we will have fun. ETH must defend itself against the ADA, SOL and ALGO projects.
Algorand and its significant increase
The last week ALGO was able to produce a profit 101%. Thanks to this, the project was able to climb to the price level 2.1 USD. But what’s behind it?
The main reason why ALGO is growing can certainly be considered the significant cooperation with the Government of El Salvador through the company KoinBanx. The entire government blockchain infrastructure will thus be built on the Algorand network.
What should also be added, however, is that this report came to light only after the official launch of BTC as legal tender. This was reflected in total volumes, which rose from $ 180 million to record highs $ 2.79 billion.
The ALGO token was also successful on derivatives exchanges. Volumes, too, reached a new high of $ 3.28 billion, an increase of 671% in less than two days.
ALGO vs. ETH
How is it possible that a much smaller project could compete with the largest ETH network? There are several reasons. But the biggest advantage is that ALGO already has more power than ETH. In terms of creating smart contracts, it is network cheaper and faster. In any case, ETH developers have something to do to withstand the pressure of its competitors.