The price of Algorands’ native currency, ALGO, rose 29.63% last week, with over 1 billion ALGO traded between late Saturday and early Sunday.
Early Sunday, the price was at $0.75, up 6.26%, with a 24-hour trading volume of over $769 million, before falling slightly to $0.72 with a market cap of $590 million as of 9:10 a.m (UTC +1)
In November 2021, its price was above $2 before dipping, and its value seems to be rising lately, slowly recovering from its plunge earlier this year. The recent price increase could be due to Algorand’s recent partnership with FIFA, which has made it the official blockchain platform for it.
The partnership was announced by FIFA President Gianni Infantino on May 1st, saying, “We are delighted to announce this partnership with Algorand. The collaboration is a clear indication of FIFA’s commitment to continually seeking innovative channels for sustainable revenue growth for further reinvestment back into football ensuring transparency to our stakeholders and world-wide football fans – a key element of our Vision to make football truly global. I look forward to a long and fruitful partnership with Algorand.”
Following the May 1st announcement, ALGO’s price rose 15% from April 30th. According to the agreement between FIFA and Algorand, the blockchain will be a regional supporter of the FIFA World Cup Qatar 2022 in both North America and Europe and become an official sponsor of the FIFA Women’s World Cup Australia and New Zealand 2023.
Algorand will also assist FIFA in developing its digital asset strategy, and they will provide it with sponsorship assets including, but not limited to, promotional opportunities, media exposure, and advertising.
The recent price increase could also be due to the high purchase of ALGO by its governors to allow them to stake a large amount of it to increase their chances of being selected to propose new blocks and to vote on blocks as the blockchain uses a pure Proof-of-Stake (PoS) protocol based on Byzantine consensus.
Under its PoS, Governors are secretly and randomly chosen to propose blocks and vote on block proposals. The likelihood of being selected is directly proportional to the size of the ALGO staked. Therefore, most governors buy and stake a large amount of ALGO to increase the chances of being picked.