Algorand (ALGO) has listed the reasons preventing its growth!

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A well-known cryptocurrency analyst made important statements about the Algorithand (ALGO). What are the specific barriers of ALGO to re-ascension? Bitcoin has been buying over $30,000 for some time now, and the effects of Terra UST’s destruction are waning over time. So is ALGO a good option for investors?

Will the Algorand (ALGO) rise?

The Coin Bureau analyst provided important information about ALGO to his more than 2 million subscribers. Will Algorithand, challenging Ethereum, be able to reach the ATH level again? Algorand is currently facing a number of key challenges, including the exponential growth of ALGO supply in the market, and the general mood of fear continues to overwhelm it.

A well – known analyst said:

“Firstly, this is a blatant lack of support for Algorithand by users. Almost every smart contract cryptocurrency I’ve dealt with recently has demonstrated exponential growth of the user base in just the last few months, but this exponential growth is not so noticeable in Algorithand. I think this can be explained by the fact that the Algorithand wallets used to interact with their dApps [decentralized applications] are not as familiar or user-friendly as other browser extension wallets such as Metamask.”

This is due to the fact that the price is under more pressure.

The economy of the Algorithand tokens (ALGO)

The Algorithand tokenomics is still not so good, and the termination of the accelerated verification of the first ALGO investors did not help the ALGO price movement at all. To make matters worse, the supply continues to flow into the market. Sean Lee, former CEO of the Algorand Foundation, confirmed in a January presentation that the ALGO offer has grown from 1.4 billion to more than 6.3 billion in 2021 alone.

An analyst at Coin Bureau says the problems are compounded by insufficient demand for ALGO.

“The main reason for the lack of a lot of demand for ALGO is that Algorithand has focused on attracting institutions and institutional investors, rather than individual users and investors.”

Despite these problems, the cryptanalyst says that the smart contract platform can set new records if its strategy focused on institutional investors proves successful.

Algorand has a lot to work on, but if its focus on institutional implementation is fruitful, ALGO will be able to surpass its previous ATH level.”

At the time of writing, ALGO costs $0.45.