Is Algorand dead? The bull vs bear case for ALGO

Despite skepticism from the crypto community, the debate over Algorand’s future is far from settled. Let’s examine both sides.

The bear case: why Algorand may be in trouble

Since its debut, the blockchain launched by Turing Award–winning computer scientist Silvio Micali has sparked mixed reactions among crypto enthusiasts.

On one hand, Micali introduced an innovative Layer-1 blockchain based on Pure Proof-of-Stake (PPoS), designed to offer fast and low-cost transactions. On the other hand, market performance of its native token, ALGO, has consistently disappointed its holders.

While other cryptocurrencies have experienced periodic rallies, ALGO remains stagnant, with its price continuing to decline. The token is currently trading around $0.24, down more than 90% from its peak of $3.28. This weakness has frustrated investors and raised debate over is Algorand dead.

The bears (pessimists) argue that Algorand is losing the race to more popular and hyped L1 blockchains such as Solana, Avalanche, and Ethereum. These networks continue to attract developers and users, and their tokens have shown strong growth, leaving ALGO far behind in the battle for market share.

The lack of widely adopted decentralized applications (DApps) capable of a broad audience, and inconsistent communication from the team, also fuels skepticism about the project’s viability.

The bull case: why Algorand still has a future

The bulls (optimists) argue that Algorand is not dead – it’s simply following a different strategy. Instead of chasing speculative hype, the team is focused on building a reliable and scalable technology for real-world applications.

The fundamental advantages of Algorand are the PPoS consensus mechanism, which ensures instant transaction finalization and low fees. This makes it an ideal solution for cross-border financial operations, government projects, and even the launch of CBDCs. The company is actively working on establishing partnerships with large corporations and government organizations, confirming its serious intentions.

For example, Algorand was selected as the base technology for the first national digital currency of the Marshall Islands, Marshallese Sovereign (SOV). SOV circulates alongside the US dollar. Algorand was chosen for its speed, scalability, security, and the ability to embed the necessary compliance mechanisms. The partnership was facilitated by SFB Technologies, which oversees the sovereign digital currency initiative.

Another key development is the rollout of the State Proofs protocol that enables a secure connection between different blockchains by generating “state proofs.” These proofs are available even for smartphones, Internet of Things (IoT) devices, and within smart contracts on different blockchains.

In its roadmap, Algorand has set priorities around corporate tools, including Intermezzo (custodial APIs for banks) and Rocca Wallet (a self-custody osolution without the need for a seed phrase). The roadmap also outlines goals such as partnering with FIFA for the tokenization of real-world assets (RWA) and supporting the launch of the USDVB stablecoin for the Canadian VersaBank.

This business activity proves that Algorand is far from “dead” and is laying a solid foundation for its future without unnecessary noise.

Final thoughts

The question “Is Algorand dead?” has no definite answer, as it depends on your perspective.

If you judge solely on current price indicators, the bears make a strong case. However, if you look at the technology, fundamental advantages, and strategic partnerships, the outlook is much more optimistic.

Algorand has chosen reliability and longevity over instant popularity. This approach rarely delivers quick results, but it helps build a foundation for lasting success.

In that sense, Algorand is not dead; it is still in its building phase. This makes it an interesting project for those looking for a long-term perspective.