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The Algorand blockchain just reached another milestone. The DefiLlama aggregator reveals that Algorand has reached its all-time high in total value locked. This achievement comes after Algorand’s native cryptocurrency, ALGO, has surged by over 20% in the last 7 days. Algorand is outperforming both Bitcoin and Ethereum in these bearish conditions.
The Federal Reserve’s hawkish stance has knee-capped the crypto market. Bitcoin and Ethereum prices are on a roller-coaster but are not able to break through. The rest of the altcoin market is also sluggish. Meanwhile, ALGO went up by 13% in the last 24 hours. It is currently trading at $0.36.
How Algorand Is Outperforming Ethereum
Ethereum just went through a successful merge, which shifted its consensus mechanism from Proof-of-work to Proof-of-stake. Algorand, on the other hand, was based on the Proof-of-stake model from the beginning. When Ethereum completed the merge, Algorand took a subtle dig at Ethereum and stated that it would be better if blockchains were energy efficient from the beginning.
Proof-of-stake replaces the mining competition in the Proof-of-work model, thus circumventing its energy consumption. Ethereum’s energy consumption went down by 99% after the merge. However, proof-of-stake is considerably more centralized than PoW.
Algorand is outperforming Ethereum in terms of scalability and speed. Ethereum merge did not increase the capacity of the network. Therefore, it did not increase the throughput or scalability of the blockchain. Ethereum’s TPS is currently in the 10-35 range. However, Algorand just achieved 6000 TPS on its blockchain. Not only does this outperforms Ethereum, but it also beats Mastercard’s 5000 TPS.
Algorand can also achieve block formation and transaction finality in 3.7 seconds. Moreover, state proofs are also now available on the blockchain which protects it from quantum attacks.
How High Can ALGO Go
ALGO has done a stellar job in surging despite the unfavorable macroeconomic conditions. However, the Federal Reserve will still dictate the strength and length of this rally. All eyes turn to the next month’s CPI data which will significantly impact the altcoins.