Algorand's total locked value has increased to an all-time high, as measured by the DefiLlama aggregator. The ALGO coin, which is exclusive to Algorand, has increased by over 20% in the past week, contributing to this success. In the current market, Algorand is doing better than both Bitcoin and Ethereum.
A halt in cryptocurrency market activity can be attributed to the Federal Reserve's aggressive posture. The value of cryptocurrencies like Bitcoin and Ethereum is fluctuating wildly but is unable to break through. The markets for other cryptocurrencies are also quite slow. At the same time, ALGO gained 13% in value during the course of the previous day. Prices have recently hovered at $0.36.
With the recent merging, Ethereum has successfully transitioned from the Proof-of-work consensus method to the Proof-of-stake consensus mechanism. However, Algorand was designed from the ground up to use the Proof-of-stake consensus mechanism. After Ethereum's merging was complete, Algorand made a sly jab at Ethereum by saying that it would be preferable if blockchains were energy efficient from the start.
Proof-of-stake is an alternative to the energy-intensive Proof-of-work protocol that eliminates the need for mining competition. Following the fork, Ethereum's energy usage dropped by 99%. Nonetheless, PoS is far more centralized than PoW.
When compared to Ethereum, Algorand is superior in terms of scalability and transaction throughput. The Ethereum network capacity was not increased after the integration. Thus, it did not improve the blockchain's scalability or throughput. The current TPS for Ethereum is anywhere between 10 and 35. However, Algorand's blockchain has recently hit 6000 TPS. This not only surpasses Ethereum's performance but also Mastercard's 5000 TPS.
Additionally, Algorand's block creation and transaction confirmation times might be as low as 3.7 seconds. Additionally, state proofs are now accessible on the blockchain, making it resistant to quantum attacks.
Despite the challenging macroeconomic conditions, ALGO has done an outstanding job of rising. But the Fed's actions will determine how long and how strong this surge lasts. There is a lot riding on the consumer price index data for the coming month, which will be released on the first of the month.
