In 2023, Algorand [ALGO] is off to a great start. The network recently passed the one billion transaction mark, which is significant in terms of utility. What does all of this mean for Algorand and ALGO?
The fact that Algorand has completed one billion transactions demonstrates its utility over the years. This resulted in a healthy adoption rate as well as a substantial amount of value entering its ecosystem. It’s also worth noting that Algorand accomplished this impressive feat with no downtime, even at sustained high loads.
Algorand may reach the milestone as a result of the healthy adoption and onboarding of decentralized projects. Dequency, a music licensing marketplace, is one of those projects that could be pivotal in shaping the evolution of the music industry in the decentralized space.
The change will allow musicians to choose whether to sell their licenses in cash or in cryptocurrency. Maybe even both. More intriguing, Dequency has the ability to tap into robust growth in the music industry.
Algorand’s prospects in January look promising not only in terms of adoption but also in terms of development. The network came to an end in December, with a decrease in development activity. However, it began with an increase in development activity.
This surge in development activity may have coincided with an increase in investor confidence. Given the demand for ALGO in the derivatives market, this appears to be the case. Binance and DYDX funding rates have both improved significantly this week.
Can these factors, however, support a positive price action? After pivoting from its 2022 lows, ALGO has gained 16% in the last six days. It was trading at $0.18 at the time of publication, but the real question is whether the rally can be sustained.
The price increase in ALGO reflected a surge in money inflows, as measured by the Money Flow Index (MFI). The current trajectory shows significant strength as measured by the Relative Strength Index (RSI), but it is now below the 50% RSI level.
There was also the possibility of some profit taking near this range, as well as a possible reversal. However, if the bullish sentiment continues, there may be more upside.
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