What is Algorand ? How does it competes with Ethereum ?
With ALGO, the native currency of Algorand, the network is decentralized and uses blockchain technology.By combining well-established cryptocurrencies with new technologies, such as Algorand will offer features such as decentralization, transactions without a central authority, and easy-to-divide tokens, without sacrificing speed or computing power.
According to reports, Algorithm could challenge Ethereum’s position as one of the biggest and most significant altcoins. Here are some differences.
Developers of DeFi have turned to Algorand as a network to develop applications due to the lower transaction fees on Algorand compared to Ethereum. To generate new coins, both Ethereum 2.0 and Algorand use the proof-of-stake method. However, members of the Algorand network only need one coin, while Ethereum 2.0 requires 32ether.
What are AlgoDex, AlgoFi, Folks Finance & Tinyman
Algorand has a rich ecosystem of decentralized apps and here are the popular protocols on Algorand ecosystem
- AlgoDex – this is the Uniswap of Algorand. Users can swap one token for another in a permission less, decentralized way.
- AlgoFi – Algofi is a fast, low-cost crypto lending market on the Algorand blockchain that makes decentralized lending broadly accessible. Algofi aims to be the first crypto-native bank that bridges the gap between traditional and decentralized finance [source].
- Folks Finance – Folks Finance is a capital markets protocol for lending and borrowing built and operated on top of the Algorand blockchain [source]
- Tinyman– Tinyman is a decentralized trading protocol which utilizes the fast and secure framework of the Algorand blockchain, creating an open and safe marketplace for traders, liquidity providers, and developers.[source]
How Popular Are AlgoDex, AlgoFi, Folks Finance and Tinyman compared to other applications?
Lets explore the data available on flipside crypto data warehouse and find out the popularity of these protocols compared to other protocols on Algorand blockchain. The following chart shows the transaction since Jan 2022. The chart distributes the each weekly bar based on amount of transactions recorded on Algorand blockchain for each of these popular protocols. As you see in the charts, AlgoFi has been contributing to more than 45+ percentage of transactions on Algorand since late March 2022.The second spot for most number of transactions is held by Tinyman and followed by all other apps combined at third place.
This chart shows the week over week change in transactions for the respective protocols. While AlgoFi has been consistent with less volatility in transactions, where as Folks Finance has been recording significant swings. Around May 15 there was a spike of traffic to 85% compared to previous week and around July 2nd there was a spike of 160% in transactions compared to previous week.
The following charts shows the week over change of transactions in the popular Algorand protocols along with ALGO token price.
The ALGO token price has been beaten up badly just like every other crypto currency and for the past few weeks it is been stable 31 cents. The stability of the token is also brining down the volatility in transactions across various protocols.