Will Algorand Be Able to Become the Viable Ethereum Rival It Promised to Be?
4 min read . Updated: 09 Feb 2023, 06:59 PM IST
PremiumPlatforms like Solana, Fantom and Avalanche are all layer 1 networks that have attempted to compete with Ethereum to varying degrees of success. But Algorand specifically has done its best to keep up with the rest to become a real Ethereum Rival through its own unique efforts
Ethereum (ETH) is second only to Bitcoin (BTC) as the top cryptocurrency by market cap and it holds this position firmly. The thing about Ethereum is that it isn’t actually the token itself, Ether is. Ethereum itself is a blockchain platform that allows the distribution of tokens to remain safe and secure through its built-in decentralised finance, or DeFi, technology. It is host to many of the top cryptocurrencies on the market, and has inspired many to attempt to replicate as well improve the platforms functionality by creating their own. Platforms like Solana, Fantom and Avalanche are all layer 1 networks that have attempted to compete with Ethereum to varying degrees of success. But Algorand specifically has done its best to keep up with the rest to become a real Ethereum Rival through its own unique efforts. The question is, has it been able to do this?
The One that Started it All - Ethereum
Since the moment Ethereum launched in 2015, it has been pivotal in most of the changes the market has been through. It quickly grew in notoriety for its innovation, and eventually took second place in the top 10 of all cryptocurrencies in 2018, remaining there ever since. Ethereum has maintained its momentum despite a history of controversies and losses, proving to be a force to be reckoned with for any developers looking to launch a platform that could one day take its position. Ethereum has over 150 companies that all work together for the continued improvement of Ethereum’s technology as part of the Enterprise Ethereum Alliance. In January of this year Ethereum’s Ether experienced a 30% price surge, and even with the new regulation developments that the market has reacted to, Ethereum has managed to land on its feet and recover nicely.
Algorand Travels to Grow
Algorand (ALGO) has been fighting the good fight since 2021, coming to the battlefield during the Great Cryptocurrency Bubble, when even the average person who had never heard of crypto started paying attention. It managed to make a name for itself and remain relevant, currently sitting at number 34 in the top 100 cryptos by market cap. Just like its contemporaries, it is a network that focuses on transaction speed and security, but what makes Algorand stand out is its central focus on being environmentally friendly. Focusing on its carbon footprint by making sure it reduces more carbon dioxide emissions than it creates, it is the self-proclaimed world’s greenest blockchain.
But despite the respectable mission of the platform, its native token was in freefall in 2022, suffering alongside - if not more than - many other big names in the market. The value of ALGO has taken quite the substantial drop, though this does not seem to be an attribute of any specific external issues and could possibly just be a reaction to the typically volatile nature of the market. Despite the drop, Algorand was trending upwards overall in January, which could be an indication of future growth. The community behind Algorand also seems overwhelmingly optimistic with many bullish takes being made in regards to Algorand’s trajectory.
The Algorand Foundation have announced their intention to focus on partnerships in India, which may just be what it takes for the platform to be where it needs to be to grow. One of the organisations they will be partnering with is T-Hub. By partnering with T-Hub, an indian innovation hub that is partnered with over 600 big corporations such as Intel and Microsoft, Algorand will be able to grow its brand and become more accessible in countries outside of the west which should then be reflected in its value.
Conclusion
Ethereum has proved time and time again that its resilience and perseverance, which makes it hard to compare to. That said, to reiterate, Algorand has actually had a good start of the year and seems like it should have a good February as it up 20% so far; so if the aforementioned moves its making as well as the continued community support are a sign of anything, Algorand may be able to maintain its current price rally and grow to be a true competitor to Ethereum.
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