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Support from institutional investors and a slew of new collaborations might help ALGO break out of its current trading range in the next week.
Consolidation periods tend to follow large rallies, but they also provide an excellent chance to examine the market and examine initiatives with solid fundamentals.
Algorand (ALGO), a pure proof-of-stake (POS) blockchain network that has recently obtained new collaborations and real-world use case applications, as well as support from multi-million-dollar investors, is one project that is gaining pace in terms of price recovery and network adoption.
Big funds invest in Algorand-based projects
Raising funds is one of the biggest challenges many projects face and in the last month the Algorand network announced that Arrington Capital, a digital asset manager, had pledged $100 million in funding meant to help accelerate additional development across all facets of the smart contract platform.
Today, @arringtonXRPcap announced the launch of a $100M fund to invest in #Algorand-based initiatives! The Arrington Algo Growth Fund (AAGF) will focus on empowering projects building on Algorand & supporting ecosystem growth: https://t.co/cWKsD73Ub4 #futurefi @arrington pic.twitter.com/LFlCQcoaQh
— Algorand (@Algorand) June 10, 2021
This development came on the heels of the June 2 announcement that Borderless Capital, a venture capital firm, had created a $25 million fund aimed at supporting Miami-based blockchain startups developing digital payment solutions on the Algorand network.
New partnerships lure investors
A quick look through the Algorand Foundation Twitter feed reveals a growing number of cryptocurrency initiatives from a range of industries who have joined the Algorand community to benefit from the low cost, POS environment.
Following a partnership with Curate that will allow for the minting of NFTs, as well as the release of a bridge by Curvegrid that will allow businesses to build NFT and blockchain technology into their business and consumer mobile applications, the nonfungible token (NFT) sector is showing some interest in the network.
Other recent examples of adoption include a collaboration with the Bermuda-based MAPay healthcare payment solution, which will host its payment solution on the Algorand blockchain in an effort to improve efficiency and reduce healthcare costs, and a collaboration with Xfinite and Eros Now to create a blockchain-based content engagement platform for Eros Now’s 224 million registered users.
These new collaborations follow a hectic year for the network, which saw the inclusion of the two largest stablecoins in the cryptocurrency industry, USD Coin (USDC) and Tether (USDT).
“By running USDT and USDC on Algorand, users can transact in their preferred U.S. dollar-backed #stablecoin at a fraction of the cost and time.”@JayHao8 highlights the performance of the Algorand #blockchain in a recent @Cointelegraph article: https://t.co/AfMKbFpWlp
— Algorand (@Algorand) March 9, 2021
The growing list of network partnerships and investments from players in traditional finance suggests that ALGO is well-positioned to see future growth as the blockchain sector sees continued adoption and the crypto market recovers from it recent sharp correction.