Algorand’s Latest Network Upgrade Is Strengthening its DeFi Adoption

Advertisement

Algorand - Algorand’s Latest Network Upgrade Is Strengthening its DeFi Adoption

Source: shutterstock.com/Shizume

Algorand (ALGO-USD) is a decentralized blockchain-based network supporting a plethora of applications which narrow the gap between traditional finance and decentralized finance (DeFi). This blockchain platform aims to become a leading payments processor network allowing scalable, efficient, and secure transactions with lower transaction fees due to its proof-of-stake (PoS) blockchain protocol. The company has announced a major upgrade in its network that strengthens its ecosystem and is positive news for the wider adoption and use of ALGO, the native coin of the Algorand platform.

Algorand is expanding its smart contract functionality with contract-to-contract calls and enhancing the use of cross-chain interoperability.

Why is this so important? It increases both the utility and functionality of its ecosystem. Algorand wants to become a key player in DeFi and non fungible tokens (NFTs), building a scalable and secure blockchain infrastructure. With this upgrade, cross-chain interoperability improves, allowing different systems, devices, and applications to connect and communicate more effectively.

Developers in the Algorand network can build complex decentralized apps (dApps) that will interact with other smart contract-based dApps more efficiently. Therefore, this enhances their total degree of functionality and usability. It will provide more freedom and an incentive for developers to be more creative and push their limits to create more apps in the DeFi protocol.

Algorand is also working on its State Proofs infrastructure, which will be a game-changer for its wider adoption in mobile devices. This news about the improvements in Algorand’s stability, efficiency, high performance, and security seem to have already attracted interest from institutional investors.

VanEck Europe has launched an exchange-traded note (ETN) on Algorand, offering direct exposure to the ALGO coin. It will trade similarly to an exchange traded fund on regulated exchanges.  The VanEck Algorand ETN will follow and try to mimic the performance of the MVIS CryptoCompare Algorand VWAP Close Index, which has losses of nearly 57% in 2022.

Investment products, like this ETN, create more accessible ways to invest in the future of Algorand.

ALGO has declined from nearly $1.70 in early Jan. 2022 to $0.72 as of today. Considering the importance of this update, supporters of Algorand could start building positions after this selloff with more confidence.

On the date of publication, Stavros Georgiadis, CFA  did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/algorand-latest-network-upgrade-is-strengthening-its-defi-adoption/.

©2024 InvestorPlace Media, LLC