• Algorand was created by Turing award winner Silvio Micali.
  • The protocol uses a unique pure proof-of-stake (PPOS) consensus algorithm.
  • ALGO/USD is presently aiming for the $0.50 psychological level. 

Circle’s USD-backed stablecoin “USDC,” has now officially launched on Algorand’s mainnet. This makes Algorand the first chain since Ethereum to have the two most popular USD-backed stablecoins – Tether and USDC.

Circle and USDC

Circle is a Goldman Sachs-backed global financial technology firm. USDC has leveraged Circle’s considerable clout to become the fastest-growing stablecoin in the market. USDC’s main aim is to enable companies of all sizes to realize the true power of stablecoins and public blockchains.

What is Algorand?

Founded by Turing award winner, Silvio Micali, Algorand aims to remove friction from global financial transactions through its pure-proof-of-stake blockchain protocol. Algorand uses pure proof-of-stake (PPOS) is a lot faster and fairer than the traditional POS protocol. In traditional POS, a node’s voting power is directly proportional to the size of its stake, creating a wealth disparity within the system.  PPOS selects a token holder randomly from the network, regardless of the size of the stake. Every participant gets to be a winner, within this system.

Algorand and USDC

As a part of the partnership, both Algorand and Circle will promote the unique benefits of USDC on the former’s blockchain for institutions looking to build large-scale DeFi applications. Circle's big aim in Q3 2020 is to provide the industry with "a simple and seamless API" for moving payments between USDC on Ethereum and USDC on Algorand. This way, users will be able to enjoy a high level of interoperability and have a seamless experience across digital wallets and exchanges.

How USDC benefits Algorand

  • Growing Use of USDC - USDC has crossed $50 billion transaction volume since launch with its $2.5 billion worth of USDC issued. USDC is very popular in platforms like Compound, Maker, REN, Nuo, etc.
  • Major Investors - Circle already has an impressive investor portfolio. Investors include Bitmain, Goldman Sachs, Breyer Capital (of Facebook’s Jim Breyer), IDG Capital (of Baidu, Tencent), etc. By associating themselves with these investors, Algorand will receive a major boost.
  • Increased Transaction Volume - With the rapidly increasing transaction volume of USDC, Algorand will experience a very high level of chain utilization. This is actually in favor of Algorand, as it is built focusing on handling high throughput and scalability.
  • Attract other high-value stablecoins - Adding the top two stablecoins (USDT and USDC) to its blockchain will definitely attract other valuable stablecoins and convince them to adopt the Algorand protocol. 

Silvio Micali, Founder of Algorand, said about USDC:

This is a defining milestone for frictionless mainstream payments as well as sophisticated financial applications. This launch brings together the convenience of USDC and an advanced protocol for global financial exchange in which Layer-1 smart contracts are as simple and secure as ordinary payments.

ALGO/USD daily chart

ALGO/USD daily chart

ALGO/USD bounced up from the $0.345 support level and has gone up to $0.424 since yesterday. The MACD shows decreasing bearish momentum following the recent bullish price action. The buyers will want to sustain their momentum and break past resistance at $0.4516 (SMA 50), $0.4685 and $0.4769 (SMA 20). If they manage to do so, then the price should be able to break above the $0.50 psychological level.

ALGO/USD hourly chart

ALGO/USD hourly chart

The hourly ALGO/USD price charted seven straight bullish sessions, going up from $0.3545 to $0.4321. Following that, the $0.43 resistance line has repeatedly thwarted the price, preventing any further upward movement.


 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP