Posts about Algorand
Yesterday Algorand processed 2.3 Million transactions causing a massive spike in TPS. With that said, Algorand still has the bandwidth to do 240x more(eventually 1800x).
Over the last 7 days, Algorand has added over 800k+ new addresses.
There are almost 100k Algorand addresses with 1k+ ALGO. Look at that nice linear growth line. This is great for decentralization and means Algorand is becoming more decentralized over time. Pure Proof of Stake is amazing because ANYONE can run a participation node and participate in consensus with only ONE ALGO.
Algorand AGAIN broke it's record for Total Value Locked, breaking $300 Million. This is almost 4.3x that of Cardano TVL and yet Algorand is sitting at #30 market cap while Cardano is sitting at #8. Algorand seems to be MASSIVELY undervalued(NFA).
We're seeing more and more real world use case and usage on the Algorand blockchain. FIFA just launched its marketplace on Algorand called FIFA Plus Collect and with the World Cup coming up in November, it could easily become the biggest NFT marketplace in the world. Time will tell.
You can only buy FIFA Collect packs with either USD(US Dollar) or USDC on Algorand. Interestingly both FTX and Binance both added support for USDCa in the last week, this comes right before the world cup.
Overall, Algorand metrics are looking phenomenal and 2022 has seen HUGE growth through out the ecosystem and protocol. In September, Algorand saw a 5x performance boost to 6,000 TPS and a ~10% decrease in round times to <4s. With the release of Algorand State Proofs that allow for a new interoperability standard that can securely connect all Proof of Stake chains, Algorand is proving to be a leader with their cutting-edge technology.
To our Algofam,
Like all of you, we have been watching the FTX catastrophe unfold over the past weeks.
First and foremost, we are saddened by the livelihoods damaged by FTX and its domino effects. We know some of you are among those affected, and our hearts go out to you. We wanted to reach out to you, the community, to share an update on our interactions with FTX. The Algorand Foundation has never established a dedicated trading or custodial relationship with FTX, Alameda Research, or any affiliated companies. We have never received investment from Sam Bankman-Fried, FTX or Alameda Research, we have never been investors in them, and we have never co-invested with them.
We further investigated our secondary exposure. Counterparties - where we are a Limited Partner or have an Algo investment - have now likewise reported to us that they have no FTX exposure. Secondary exposure relies on third-party attestations, of course, which we have no reason to doubt.
We have determined that our only exposure is $1M that we held in an account to provide an on/off ramp for listing Algorand USDC (USDCa) on FTX. As you might know, we successfully listed USDCa on FTX just last month. These funds were allocated in the pursuit of growing adoption of USDCa, and it is a very small fraction of our total funds.
The collapse of FTX does not have a significant impact on USDCa; it is supported on KuCoin, OKX, Huobi, and MEXC, and another important listing announcement is soon to come.
As for how the industry moves forward, we have always believed that it is about real-world adoption, based on proven use cases. Central to this movement is the tenet “not your keys, not your coins,” and we encourage all community members to consider options for self-custody of digital assets like ALGO and USDCa including Ledger, MyAlgoWallet, or the Pera mobile wallet, to name a few.
Our goal at the Foundation is to empower a dynamic, inclusive, and borderless global ecosystem - at scale - based on the Algorand blockchain technology, and we will continue to do so through good times and bad.
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Source: https://www.algorand.foundation/news/ftx
Also, no exposure to BlockFi, Gemini or Genesis Trading.
Source: https://twitter.com/StaciW_DC/status/1592912316923670528, https://twitter.com/StaciW_DC/status/1592929827023368194
The Algorand shillers have been relentless about the future of the project lately. I do not believe it has a future. This is the opposite of an Algorand shill post.
I do not hold ALGO. This is why. TLDR - just read the bold headlines.
Inflation - 27% increase
The Inflation of a coin is simply the rate at which it is currently increasing its supply every year. I.e. If a token has a 2% inflation rate, then one year from now, 2% more tokens are available to buy.
One year ago, Algorand had 5,460,295,593 coins in circulation. Today it has 6,927,212,643. This represents an increase of 27%. Factoring in the estimated staking rate of ~5%, it means the token loses more than 20% of its value every year.
(The coin has an inflation rate of 95% if I take the value from 54 weeks ago, going from 3.5bn tokens to 6.9bn in the past year.)
Daily Active Users - 97% drop
This is simply the number of addresses on the blockchain that perform at least one transaction on a particular day.
During the bear market, all projects lose users. Algorand has lost a lot of its daily active users, dropping from over 1,773,000 to just 60600. This represents a staggering 97% drop in active users. In the same time frame, Ethereum has dropped 14% (and that doesn't even include layer 2 protocols like Arbitrum).
This statistic is so bad, it is not even available on the explorer - they only list the total accounts. I had to get the real data from Messari.
Messari - Algorand Daily Active Addresses
MarketCap Rank - dropped 11 spots
This metric is market value size of the cryptocurrency relative to all other cryptocurrencies. One year ago, Algorand was ranked as the 18th largest crypto. Today it is 29th - a drop of 11 spots.
The CEO quit - he got bored
Obvious. But the CEO left the project to pursue other interests. Historically, any time a CEO leaves a project, it has rarely, if ever, held its value. See Loopring or Fantom...
Decentralisation - not too bad
The level of decentralisation for Algorand is unneccesarily convoluted. The easiest way to consider its level of decentralisation is two factors:
The Nakamoto Coefficient is estimated to be between 13 and 15, which puts it well behind its competitors. Avalanche 30, Solana at 31, Polkadot 82
The number of active validators is 370. Cardano at 3500, Ethereum 411,000
Scalability - copied another project's idea
Algorand 'solved' the scaling problem by copying what Bitcoin cash did - and somehow made it worse. They simply make bigger blocks, but they sacrificed efficiency. Bitcoin Cash creates 32MB blocks every 10 minutes - Algorand requires ~ 800 MB to accomplish the same task. Basically, it requires 25x more data to process transactions than a five year old crypto.
Finally, the shill posts...
Some users may be aware, but it is long believe that some projects employ paid shillers. Literally people that post information in a positive light consistently. It is my belief that Algorand is guilty of this. Please understand, that this is purely speculation and I have no evidence. I would be happy to point out specific users and link posts that I am adamant are paid advertising by Algorand. But out of respect to the subs rules, I will abstain - but if a Mod approves it, I have it ready to go.
EDIT:
Lots of people accusing me of not having the balls to respond to the comments.
I actually responded to several of them, but most of my comments got downvoted into oblivion, so I just gave up. If you want to debate, that’s cool, but apparently you only get toddler tantrums from ALGO shillers.
I tried responding to this comment, but my response got destroyed by the paid shillers, so I’ll put it here..
If you want to take the snapshot of the market cap position on the date in your comment, go ahead, but then you also have to take the token supply on that date too, so enjoy the 95% inflation rate that goes with it. *
If reading comments, I suggest sorting by controversial.
I think we can all agree that tps numbers can be hard to compare between chains. Some chains can pin 10000s of native token transfers, but things get weird when you start to compare smart contracts.
I posted about this metric in the Algorand subreddit for determining throughput of different blockchains in the fairest way possible. That is using an AMM “uniswap-style” swap as the benchmark.
The authors of the medium article linked in my original post tested the smart contract throughput of some of the top smart contract platforms empirically, and they found that these chains to have the following AMM-swap tps limits:
Solana Mainnet Orca - 273 swaps
BSC pancakeswap - 195 swaps
Polygon quickswap - 95 swaps
Axax Trader Joe - 176 swaps
Celo Ubeswap - 50 swaps
Ethereum uniswap v2 - 18 swaps
Now Algorand can handle 1625 AMM swaps per second on Tinyman.
For reference that is:
6.0x more than Solana
8.3x more than Binance
9.2x more than Avalanche
17x more than Polygon
32.5x more than Celo
90.3x more than Ethereum
Algorand's new upgrade reduced block times from ~4.5s to ~3.8s per block, and there has already been a block with 25k transactions in it on the mainnet which translates to approximately 6500 tps.
Thanks to the insight of /u/abeliabedelia, based on the opcode budget limit for each transaction, it was determined that a tinyman swap requires 4 transactions, which means that Algorand’ TPS divided by 4 is approximately equal to its ability for smart contracts per second. (6500/4) = 1625 swaps per second.
And a special thanks to /u/sdcvbhjz for actually empirically checking and confirming the transaction count to be 4 standard transactions for each tinyman swap.
Edit: added words