Algorand (ALGO) announced that the staking rewards program went live on the blockchain post a major consensus upgrade this week and the ALGO token soared by almost 5% in 24 hours.
Algorand (ALGO), a blockchain project focused on faster transactions and improved efficiency, witnessed a major consensus mechanism upgrade this week and introduced a staking rewards program. The substantial upgrade put the ALGO token ALGO $0.23 24h volatility: 1.7% Market cap: $1.96 B Vol. 24h: $63.36 M on a bullish path as it spiked to its daily high of $0.422, soaring over 4.78% in the past 24 hours.
According to a press release, the validators who are successfully proposing blockchains to the Algorand network are receiving rewards in real time. Additionally, the protocol confirmed that the rewards begin at 10 ALGO per block and “will decay by 1% every millionth block.” Moreover, the validators also get 50% of the transaction fees of the blocks they successfully propose.
John Woods, the technology chief at Algorand Foundation, stated that stalking on the blockchain network is “highly inclusive; it’s highly secure as well,” while adding:
“Algorand uses advanced cryptography that makes it unnecessary to put user funds at risk of penalty or loss — their ALGO does not need to be delegated to other parties or locked up to be used to secure the network.”
Meanwhile, the total value locked (TVL) for Algorand has soared by 3.86% in the past 24 hours, according to DefiLlama data. The TVL for the blockchain network stands at $156.79 million at the time of writing, substantially down from the high of $292.83 on February 9th last year.
Algorand Price Analysis
According to CoinMarketCap data, Algorand is trading at $0.4164 at press time, down 87.53% from its all-time high of $3.28 witnessed over six years ago. The altcoin has dropped 12.82% in the past week amid the broader market correction but has printed a massive 158.85% in gains in the past year.
The chart provided by TradingView below confirmed a bearish divergence for the altcoin as the MACD line (blue) dropped below the RSI line (red) and the histogram turned red. However, if the bulls continue their push for higher prices, ALGO could try to claim the $0.5 price level, making its way toward its yearly high of $0.6028.
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Source: TradingView
The Relative Strength Index (RSI) for the ALGO price action reads a value of 52.76, which means that the buyers are in control of the daily chart. However, a breakout towards $0.6 will act as the confirmation for higher prices such as the $1 price tag in the coming days.
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