Algorand’s ALGO Token Surges 400% as On-chain Activity Increases
The total cryptocurrency market cap has reached approximately $3.71 trillion, a peak driven primarily by the altcoin sector. The TOTAL2 market cap, which excludes Ethereum, has also hit a new all-time high of over $1.1 trillion. This surge has attracted more investors to undervalued altcoins for potential gains.
Previously considered ‘zombie tokens,’ projects like Ripple Labs’ XRP, Litecoin, and Cardano have shown significant returns in the past five weeks. Bitcoin’s market dominance has decreased by over 10% in three weeks, dropping from above 61% to around 54% as reported.
Algorand Token Emerges Top Contender in Ongoing Altseason
In the confirmed 2024/2025 altseason, Algorand’s native token ALGO has emerged as a leading performer, surging over 400% in five weeks to trade above 50 cents for the first time in over 30 months. With a fully diluted valuation of about $4.2 billion and a daily average traded volume exceeding $1.9 billion, ALGO has ended its multi-year downtrend. Technical analysis indicates that ALGO has formed a weekly higher high and higher low, indicating a rising market trend.
The weekly Relative Strength Index (RSI) has surpassed 70%, the highest since 2021, suggesting bullish momentum. However, reaching its all-time high, which is 85% away, may involve potential dips of 15-30%, viewed by experts as long-term buying opportunities.
Major Factors Driving ALGO Up
Algorand's recent rebound is supported by strong fundamentals. The network has developed a robust Web3 ecosystem, with over $194 million in total value locked (TVL) and more than $50 million in stablecoin market cap.
Active $ALGO addresses spiked by over 300% since December 1st, signaling a significant uptick in network activity. pic.twitter.com/SgfvB3HiiZ
— IntoTheBlock (@intotheblock) December 4, 2024
On-chain analytics from IntoTheBlock indicate that Algorand's daily active addresses have surged over 300% to approximately 313,371 in four days. The network offers ultra-low transaction fees and instant finality, attracting DeFi developers. Key DeFi projects on Algorand include Folks Finance, Algomint, Tinyman, Algorai Finance, and Vestige. Algorand plans to launch staking rewards by the end of December, with a minimum solo stake requirement of 30K ALGO.