Algorand Battles Liquidity Risks – But Big 2025 Plans Could Flip the Script

Altcoin Analysis

Algorand Battles Liquidity Risks – But Big 2025 Plans Could Flip the Script

Algorand’s price has edged higher to around $0.2624, marking a 2.2% gain over the past month despite recent volatility.

With a market cap of $2.28 billion, the project is holding ground in a competitive environment, though trading volume fell sharply by more than 40% in the last 24 hours, suggesting cautious market participation.

On the charts, ALGO has been consolidating between $0.24 and $0.27, with hourly Relative Strength Index (RSI) showing a mild bullish tilt at 58. The MACD also hints at building upward momentum, aligning with investor anticipation surrounding Algorand’s 2025+ roadmap.

Roadmap Signals Bold Upgrades

Algorand is preparing for major updates under Project King Safety, aimed at revamping its tokenomics to create a self-sustaining fee model. Developers also plan to implement quantum-resistant cryptography using Falcon signatures, a move designed to secure the network against next-generation threats.

Another highly anticipated milestone is the launch of Rocca Wallet in late 2025, which eliminates seed phrases and focuses on accessibility for mainstream users. Analysts argue that if Algorand meets these deadlines, it could reduce sell pressure caused by inflationary tokenomics and attract institutional interest through ISO 20022 compliance.

Tokenization Push Meets Stablecoin Uncertainty

Algorand has also made strides in the real-world asset (RWA) sector, with over $90 million in total value locked (TVL), led by tokenized real estate platform Lofty. Earlier this year, Algorand facilitated Europe’s first tokenized U.S. Treasury bill via Midas’ mTBILL, underscoring its ambitions in regulated finance.

However, challenges remain. Tether’s decision to phase out USDT support on Algorand by September 2025 threatens to drain nearly $99 million in liquidity. Unless alternative stablecoins step in to fill the gap, this could trigger 20-30% price swings, making Algorand’s short-term outlook highly dependent on replacement liquidity inflows.

Market Outlook

For now, traders appear cautiously optimistic. Technical indicators suggest that ALGO may retest the $0.27–$0.28 resistance zone if momentum holds, while failure to attract stablecoin liquidity could push the token back toward $0.24 support.

The long-term trajectory will hinge on whether Algorand can execute on its roadmap while balancing stablecoin liquidity needs. Success in both areas may reframe ALGO as a stronger contender in institutional-grade blockchain infrastructure.


The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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Author

Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

Source: https://coindoo.com/market/algorand-battles-liquidity-risks-but-big-2025-plans-could-flip-the-script/