Algorand Price Prediction 2030: Algorithm Makes a Bullish Price Forecast

 Key takeaways

• Algorand (ALGO) has been predicted to rise by 2x before 2030 in a move that includes a $0.20 price prediction for 2029
• The Algorand blockchain’s real volume statistics may shed more light on ALGO’s price prediction, especially when compared against other enterprise-grade chains
• A trader that goes by the name Solldy on TradingView has shared his trading set-up for ALGO, targeting a minimum 8% bounce in the near term

Algorithm predicts 2x gain for ALGO before 2030: Could Algorand outperform expectations?

The price prediction algorithm has forecasted some price action that may seem disappointing to Algorand (ALGO) investors, as the prediction model expects an underwhelming return from the current price level. While the algorithm does indicate that there will be a 2x move in 2029, the 2030 price prediction is actually negative for ALGO from the current price level.

ALGO initially launched in 2019 at a $3.15 market price, which would give it a fully diluted market cap of $31.5 billion. The project was backed heavily by various private investment firms, including Pillar VC and Union Square Ventures during its 2018 Seed Round.

After climbing to $2.98 during the 2021 bull market, ALGO experienced a decline not dissimilar from other cryptocurrencies in Web3. The entire market has been in a downtrend since the end of 2021, which can be seen as the primary explanation for its -96% price action since all-time high.

However, a key difference between ALGO and other top tokens is that the CoinCodex price prediction algorithm does not expect a significant recovery for ALGO before 2025. The 2030 price prediction includes a 2x surge to $0.20 in 2029, but this would still be -93% down from its 2021 high.

2030 price prediction for ALGO, via CoinCodex

Algorand struggles with reduced transaction volume during bearish market conditions, but does this tell the whole story?

Algorand is a Turing complete proof-of-stake chain that offers smart contracts and dApp development. A key component of its value proposition is that it aims to solve the blockchain trilemma with a consensus protocol that enables security, scalability and decentralization all at once.

The blockchain also boasts sub-zero carbon emissions and caters to enterprise-grade clients who are seeking to launch blockchain-based businesses. Algorand launched in 2019 and has been in operation since. During that time it rose to $2.10 at the peak of the 2021 bull market and the price of ALGO has since dropped -96%.

Algorand is a smart contracts platform that solves all three components of the blockchain trilema, image via Algorand

The recent price drop can be seen as a direct result of the wider market conditions. The entirety of the crypto industry has been in the midst of a ‘crypto winter’ since the end of 2021, with the vast majority of tokens being in a consistent downtrend in that time.

However, two notable blockchains that can be compared with Algorand to gain a better understanding of its recent performance are Solana (SOL) and Aptos (APT). Both blockchains in question are Turing complete, high-performance blockchain networks that deliver scalability and low carbon emissions.

Both Solana and Aptos also aim to cater to enterprise-grade clientele, as the blockchains enable the development of highly scalable dApps that have the potential to support vast numbers of users.

Other key similarities between Algorand and Solana is that SOL launched in early 2020, before the last bull market, and was backed by venture capitalists. Aptos, meanwhile, launched in the middle of the bear market and can be seen as having all the disadvantages as ALGO had during this time period in terms of attracting users.

Nonetheless, there are stark differences between each of the three blockchains’ average weekly trading volume. The following figures reference the total volume of assets exchanged on each blockchain, weighted over a four week period to provide a more accurate average.

Algorand’s recent network activity averages $60.37m in volume, Aptos averages $235.58m in volume, and Solana averages $1,200.50m in volume ($1.2bn). Solana, despite being released after Algorand, is currently processing almost 20x more transaction volume on a comparable layer-1 chain.

Real daily volume time weighted over the previous four weeks for selected blockchains, denominated in millions of dollars. Data sourced from Messari.

Trader predicts short-term rally for ALGO after reaching strong support

A trader known as Solldy on TradingView has shared his set-up for ALGO in the near term. Solldy has highlighted that ALGO finds itself at strong support at the $0.0943 price level, which could mean that it’s due a bounce back towards resistance.

At a minimum, Solldy expects ALGO to re-test the upper resistance line for its current channel, which spans from $0.0943 to $0.0979. This would represent an +8% gain in the coming days. If ALGO can successfully break above this resistance, then it may target higher levels at $0.1020 and $0.1064 respectively.

Trading set-up shared by Solldy on TradingView

Bottom line: Algorand may need an uptick in user activity to remain competitive with other leading chains over the long term

The CoinCodex price prediction model expects ALGO to gain some bullish momentum during 2025 and 2029 respectively; however, the overall price prediction can be seen as disappointing. The 2x gain predicted by 2029 would still leave ALGO -93% down from its 2021 high, which means that long term token holders may struggle to recuperate their investment.

ALGO, undoubtedly, has been impacted by the ongoing crypto winter. Regardless, its network activity remains someway below two comparable blockchains that are also suffering from reduced reach. While the price prediction model is not gospel, it analyzes real-time and historical market data to provide a guideline for what investors can expect at this moment in time.

Declining usership rates and weekly on-chain trading volume could harm ALGO over the long term, but these are not constant figures. If Algorand can successfully inject more life into its blockchain ecosystem then more users are likely to follow, which means that there is still the possibility that ALGO could outperform the price model’s expectations over time.

Algorand all-time price chart, via CoinCodex