Algorand [ALGO]: Why this proof-of-stake giant could hit $2 soon

Key Takeaways

Why is Algorand struggling now, and what’s its short-term outlook?

Despite strong whale and retail demand, ALGO has dropped 12.1% in the past 30 days, with its RSI nearing oversold territory at 36.

What makes Algorand’s long-term future promising?

Algorand’s growing ecosystem, including 40 dApps, tokenized real-world assets, and 65K active addresses, positions it for long-term growth.

While the crypto market has recorded significant gains in 2025, Algorand [ALGO] has struggled considerably.

 In fact, since hitting $0.34 three months ago, Algo has traded below $0.3, with $0.20 acting as a key support level. At press time, Algorand was trading at $0.207, marking a 12.1% decline over the past 30 days. 

Despite the current downward momentum and bears’ dominance, three key factors indicate that Algorand’s future is bright. 

Algorand thriving ecosystem 

Significantly, nothing offers Algorand room for future value appreciation more than its ecosystem utility potential.

Algorand’s blockchain has grown considerably, and its usage in DeFi, Dapps, and tokenization continues to grow.

For starters, more projects are actively using the Algorand blockchain to build DeFi applications. In fact, according to Dappradar, there are 40 dApps built on Algorand with 12 DeFi applications. 

Source: Dappradar

Such a high number of dApps indicates that the blockchain has real adoption, stronger utility, and could have a significantly growing network activity. 

On top of that, Algorand Standard Asset (ASA) delivers a secure, cost-effective, and scalable solution for tokenizing regulated assets. 

This framework has already secured real-world assets. For example, Archax, a UK digital asset exchange, has successfully tokenized ABRDN money market funds. 

Also, Quantoz’s EURD stablecoin demonstrates full compliance with Europe’s MiCA regulation.

Additionally, Midas mTBILL, launched in May 2025, is a tokenized U.S. Treasury‑bill certificate entirely issued on Algorand. 

In fact, according to CoinMarketCap, there are over 16 tokens built on Algorand, further confirming increased network usage. 

Source: CoinMarketCap

Finally, Algorand’s Pure Proof of Stake makes it scalable for enterprise use. The blockchain’s PPoS systems ensure high transaction speed, low fees, and instant finality without network forks. 

Since Algorand’s blockchain development is lower than Ethereum’s, it still has room for growth and offers its native token, Algo, more room for price appreciation. 

Algorand network activity remains strong

Besides the Blockchain’s utility, its network activity has continued to grow. According to Defillama, Algorand’s Active Addresses have surged significantly, holding at a 3-month high of 65k. 

Source: Defillama

At the same time, Algorand’s Transaction Volume (1h) has peaked at 19.2k, signaling further confirmation of network usage. 

Backed by market demand

Significantly, the continued blockchain growth is backed by the actual market demand for its native token, Algo. Inasmuch as so, Algo has recorded significant demand from both whales and retail investors.

Source: Coinalyze

According to Coinlyze, retail buyers have acquired at least 32.53 million Algo tokens over the past three days. With buyers dominating the market, it signals positive market sentiment, with buyers buying the dip.

Additionally, Whale activity has surged significantly, especially in the futures market. Futures Average Order Size data from Cryptoquant showed Big Whale Orders for three consecutive weeks.

Source: CryptoQuant

Typically, whale orders suggest that whales are increasingly active in the Futures market, either shorting or longing the market.

Can ALGO hit $2?

AMBCrypto analysis observed that Algorand has unlimited potential in its price appreciation, primarily backed by its PPos, tokenization, DeFi, and real-world utility.

These conditions position Algo for significant gains in the long run. However, in the short term, Algo is experiencing intense downward pressure and risks a further dip.

At press time, Algo’s Relative Strength Index (RSI) was approaching oversold territory at 36. Likewise, its Directional Movement Index (DMI) fell to 10.8, confirming short-term downward momentum strength.

Source: Tradingview

Therefore, if these conditions persist, Algo will breach $0.20 support and drop to $0.197.

However, if whale and retail demand hold back, backed by blockchain’s PPoS and growing adoption of DeFi and tokenization, Algo could see a bullish reversal.

A trend reversal will see Algo reclaim $0.26 and target $0.31 resistance in the medium term. Also, if Algo sees more DeFi activity, dApp adoption, and partnerships attracting liquidity, it will close 2025 above $0.60.

In the long run, however, if these conditions remain suitable, based on an annual growth of 47%, Algo will hit $2 in 3–5 years if it proves itself against Solana and Ethereum blockchains.