Across the crypto market, Algorand [ALGO] it was one of those that failed to make a huge jump in July. ALGO performed relatively poorly compared to protocols such as Cardano [ADA] and Solana [SOL].
According CoinMarketCapALGO’s highest price level was $0.37, after the low of $0.30 on July 13th.
Now, a report Kraken Intelligence revealed that ALGO’s lows were beyond price performance. According to a report by the digital asset exchange, ALGO lagged behind the broader cryptocurrency group in terms of dominance.
Analyzing the details
Kraken found that the capitalization of the largest crypto market increased by over $210 billion in July. However, ALGO’s contribution to development was as minimal as one might imagine. ALGO also ranked fourth behind Dogecoin [DOGE]Cardano [ADA]and Bitcoin [BTC] in terms of Month on Month (MoM) losses of the market capitalization.
Additionally, Santiment data revealed that ALGO’s market capitalization in June reached $2.89 billion (June 6). However, the same metric reached a high of just $2.61 billion on July 19.
In addition to the drop in market cap, ALGO year-to-date (YTD) was down -88% in volume. Interestingly, it failed to average volume growth in July as it lost 37%. The Kraken report cited a few reasons that could have contributed to the losses. The departure of its former managing director, Steven Kokinou, was notable.
In addition, active addresses in many cryptocurrencies increased in July. On the other hand, ALGO recorded a fall of -25% in the same month. Declines were also seen in on-chain transfer volume and the increase in circulating supply, leading to questions as to whether the ALGO ecosystem still has a future.
Even now, the coin is still 89.91% below its all-time high (ATH). However, ALGO’s poor performance in July was across the board, with the only positive being a 14% increase in the number of trades at one point.
ALGO has also failed to replace its CEO since he stepped down – meaning the team was moving without clear direction after the COO was appointed to act in the capacity of CEO. The state of affairs could also have affected ALGO weakness to break his resistance sooner.
In light of its current position and the unseen development, ALGO could be at risk of being sidelined by investors. It may seem like the signs are already there.
In fact, a look at Santiment revealed that ALGO’s volume has none arrived anywhere near June levels. Likewise, her social dominance has also been drastically reduced.
This lack of positives from the ecosystem could push ALGO further down the ranks of the crypto market. However, investors could remain optimistic about a change in the right direction.
At press time, ALGO had gained 2.88%, claiming a gain of $0.35.