Algorand (ALGO) exchange rate: how has it changed since its release, and what influenced it?
Although Algorand is behind the DeFi-leading Ethereum protocol in all market metrics, it remains among the largest crypto projects with over $2 billion capitalization.
Algorand startup (2019)
The native token of the Algorand blockchain platform was issued and listed on exchanges in June 2019, the same time the main net (mainnet) was launched. At the time of listing, the value of the Algorand cryptocurrency was $3.15, with a market capitalization of $223.6 million. This price level remains at an all-time high (ATH) for the ALGO cryptocurrency as of January 2025.
Immediately after listing on exchanges, the value of ALGO began to fall rapidly and already in July fell to $0.55, almost 6 times relative to the listing price. As experts note, there were no good reasons for such a sharp collapse, and, most likely, some of the holders of ALGO cryptocurrency, who bought it at the initial token sale (ICO), simply began to sell altcoin to fix the profit.
After a small rebound to $0.88 in August of the same year, the price of the Algorand cryptocurrency continued to fall. By the end of September, it had already dropped to $0.20, reaching a new all-time low.
DeFi boom and a new global correction in the crypto market (2020 — 2023)
Until the end of January 2020, the value of ALGO did not change significantly. It mainly varied between $0.20 and $0.30, rarely leaving this range.
Already in February, the market capitalization of cryptocurrencies resumed growth, and the liquidity of the decentralized finance market (DeFi) began to increase due to the inflow of new capital into this sector. By March 2020, the value of the Algorand cryptocurrency had more than doubled to $0.46.
However, in the same month, against the background of the WHO's official announcement about the beginning of the pandemic, the rate of cryptocurrencies, including Algorand, sharply collapsed. The value of the cryptocurrency ALGO fell to $0.13 in less than a week, reaching a new all-time low.
However, amid the Fed's key rate cut to support the U.S. economy, investors started looking for alternatives to bank deposits. They turned their attention back to cryptocurrencies, which led to their growth. By July 2020, the value of the cryptocurrency Algorand had already risen to a six-month high of $0.38. During the same period, the so-called DeFi boom began, and as a result, the quotes of cryptocurrencies, including such capitalized altcoins as ALGO, proliferated.
Then, after a minor correction in August of the same year, the price of ALGO cryptocurrency reached an annual high of $0.65. However, the quotes of most cryptocurrencies started to fall again due to such factors as:
- Rising inflation in the U.S.;
- Tightening monetary policy of central banks of different countries, primarily the U.S. Federal Reserve and the European Central Bank;
- Pressure on the cryptocurrency market from government agencies and financial regulators.
The Algorand cryptocurrency was no exception: by November 2020, the altcoin's value fell almost threefold to $0.23. But in early 2021, cryptocurrency quotes started to grow again and more rapidly, which was facilitated by regulators' interest in digital assets and corporate investments in this sector.
As a result of the resumption of the growing trend in the crypto market, the rate of ALGO cryptocurrency has already increased to $1.67 by February 2021 — more than 7 times. In addition to general factors affecting the crypto sector, the reasons for such a rapid growth of the ALGO altcoin could be:
- The decentralized Algorand platform is used in El Salvador's blockchain infrastructure, which has become the first country to approve Bitcoin as an official means of payment.
- The growth of the protocol's liquidity in the DeFi sector: According to the analytics service DeFi Llama, the volume of the total blockchain value (TVL) of the Algorand network increased almost tenfold during that period.
After reaching a local peak in February, the rate of cryptocurrency Algorand began to fall rapidly, falling to $0.74 by the end of July of the same year. After resuming growth amid the crypto market's general rise, ALGO's value reached a new local maximum of $2.38 in September.
Then, a new general decline followed in the crypto market, which led to a decrease in quotations of almost all digital assets, including the altcoin Algorand. The decline continued until June 2022, when the value of the ALGO cryptocurrency dropped to $0.38 — more than six times the local high reached in September 2021. This decline was exacerbated by the collapse of the Terra blockchain ecosystem, which caused the quotes of LUNA tokens and its stablecoin UST to collapse, followed by the general decline of the crypto market.
Until the end of 2022, ALGO cryptocurrency quotes did not change significantly and ranged between $0.30 and $0.40. In 2023, after a slight increase in the first quarter, the price of ALGO cryptocurrency returned to correction, which lasted until September, when the cost of altcoin reached a historical low at $0.08.
Resumption of the growing trend in the crypto market (late 2023 — 2024)
In October 2023, the growth of cryptocurrencies resumed. This was due to the emergence of ETFs on Bitcoin and the recognition of cryptocurrencies, including Algorand, as securities, which means their movement towards regulation.
By March 2024, the value of the ALGO cryptocurrency increased almost 4 times — up to $0.31. Then, by August, the price of Algorand decreased to $0.11 and, until November of the same year, fluctuated between $0.11 and $0.13. Various factors hampered the growth of ALGO cryptocurrency:
- The U.S. Federal Reserve's (Fed) refusal to lower its key rate;
- Harmful economic data on the U.S. markets;
- The sale of a large amount of bitcoins by the German government;
- The distribution of assets to the affected creditors of bankrupt cryptocurrency companies Mt Gox and Genesis Global.
However, November 2024 saw an event that many crypto investors had been waiting for — Donald Trump's victory in the U.S. presidential election. Immediately after the voting results were announced, the quotes of cryptocurrencies, including ALGO, returned to growth. Already in December 2024, the price of the Algorand cryptocurrency rose to $0.48, reaching a two-year high.
However, in January 2025, there was a correction, which, according to experts, could have been caused by concerns about rising U.S. Treasury bond yields and investors' expectations of a tougher Fed policy. As of January 2024, the price of the Algorand cryptocurrency is $0.36, with a market capitalization of $3.05.