Algorand (ALGO) price strengthens as institutional investors back the project
Backing from institutional investors and a series of new partnerships could help ALGO break from its current range in the coming week.
Consolidation periods tend to follow strong rallies but they also present a good opportunity to survey the field and evaluate projects that have strong fundamentals.
One project that continues to gain traction in terms of price recovery and network adoption is Algorand (ALGO), a pure proof-of-stake (POS) blockchain network that has secured new partnerships and real-world use case applications, as well as support from multi-million-dollar funds in recent weeks.
Big funds invest in Algorand-based projects
Raising funds is one of the biggest challenges many projects face and in the last month the Algorand network announced that Arrington Capital, a digital asset manager, had pledged $100 million in funding meant to help accelerate additional development across all facets of the smart contract platform.
Today, @arringtonXRPcap announced the launch of a $100M fund to invest in #Algorand-based initiatives! The Arrington Algo Growth Fund (AAGF) will focus on empowering projects building on Algorand & supporting ecosystem growth: https://t.co/cWKsD73Ub4 #futurefi @arrington pic.twitter.com/LFlCQcoaQh
— Algorand (@Algorand) June 10, 2021
This development came on the heels of the June 2 announcement that Borderless Capital, a venture capital firm, had created a $25 million fund aimed at supporting Miami-based blockchain startups developing digital payment solutions on the Algorand network.
Related: Exodus Wallet raises almost $60M in crypto in regulated offering
New partnerships lure investors
A scroll through the Algorand Foundation Twitter feed shows a growing list of cryptocurrency projects across a variety of sectors that have joined up as part of the Algorand community to take advantage of the low fee, POS environment.
The nonfungible token (NFT) sector is showing some interest in the network following a partnership with Curate that will allow for the minting of NFTs as well as the release of a bridge by Curvegrid that will allow businesses to build NFT and blockchain technology into their business and consumer mobile applications.
Other recent examples of adoption include a partnership with the Bermuda-based MAPay healthcare payment solution, which will host its payment solution on Algorand blockchain in an effort to improve efficiency and reduce healthcare costs, as well as a partnership with Xfinite and Eros Now to create a blockchain-based content engagement platform for the 224 million registered users of Eros Now.
These new partnerships come after a busy year for the network which also included the integration of USD Coin (USDC) and Tether (USDT), the two largest stablecoins in the cryptocurrency ecosystem.
“By running USDT and USDC on Algorand, users can transact in their preferred U.S. dollar-backed #stablecoin at a fraction of the cost and time.”@JayHao8 highlights the performance of the Algorand #blockchain in a recent @Cointelegraph article: https://t.co/AfMKbFpWlp
— Algorand (@Algorand) March 9, 2021
The growing list of network partnerships and investments from players in traditional finance suggests that ALGO is well-positioned to see future growth as the blockchain sector sees continued adoption and the crypto market recovers from it recent sharp correction.
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