The Algorand network users have increased by over 250% in the past six months, signaling increased interest in the layer-1 blockchain.
The Algorand network brands itself as one of the fastest layer-1 networks, with low fees and near-instant settlements. However, the network has struggled to gain traction, having been outpaced by competitors such as Solana and Avalanche.
Nonetheless, Algorand investors have a glimmer of hope with on-chain data showing that users are now more actively interacting with the network. According to data shared by Algorand validator Algonode, the network has recorded a 250% increase in the number of daily active users.
Any guesses as to what #Algorand metric is on the chart ?
🚀250% of what it used to be 6 months ago. 📈 pic.twitter.com/pNIDWOZISv
— AlgoNode (@AlgoNode_io) February 12, 2024
A further review of on-chain data also shows an uptick in the number of transactions on the Algorand network. For instance, data shows that in the past month alone, users completed over 5.6 million transfers involving Algorand’s native token (ALGO).
At the same time, the network is seeing substantial movement of stablecoins, USDC, and USDT. Transfer counts for the stablecoins totaled nearly 900,000 in the past 30 days, with USDC dominating the numbers.
Meanwhile, it is worth noting that Algorand’s latest increase coincides with a period of growing bullish momentum in the cryptocurrency industry. Bitcoin has retaken $50,000 in the past 24 hours, reaching that mark for the first time since late 2021.
Algorand Gains 100% Since September
Since hitting a low of around $0.089 in September last year, the price of Algorand has made a remarkable recovery, rising as high as $0.24 in the early days of 2024. However, the cryptocurrency has since struggled to keep up with the positive momentum.
Algorand is trading at around $0.18 at the time of writing, with investors hopeful that the recent spike in user activity on the network will eventually lead to a positive move. Some analysts predict that Algorand may rise as high as $7.5 in the impending crypto bull market.