Some doubts on ALGO Value

Hello All,

I have some doubts on Algo value and it would be great to hear from you:

As fees are very low (0,001 ALGO) and daily transactions are around 700k, these transactions seems to have little impact on price, as it would represent only 700 Algo per day, which is very low compared to daily volume. So how an increase in usage of Algorand network can have an impact in Algo price?

What happened in august/2020 for the huge increase in transactions?

What is tradeable supply and what explains the spike of tradeable supply in the beginning of september? Algorand Stats

What is tradeable cap?

What is the meaning of circulating supply and total supply here? Algorand  Asset 

Is it possible to see anywhere the composition of Algorand transactions (the ones related to tether, USDC, etc)?

Just holding Algo in my binance wallet I receive staking interest? Binance charge any fee on that?

Tks!

As fees are very low (0,001 ALGO) and daily transactions are around 700k, these transactions seems to have little impact on price, as it would represent only 700 Algo per day, which is very low compared to daily volume. So how an increase in usage of Algorand network can have an impact in Algo price?
I agree, fees have little impact now. But: to open an account, you need min 0.1 Algo. So prof. Micali and his team has probably a different model: Algo price will be affected when 1..100 million of accounts will be opened. Also, to use Algorand Smart Contracts, min. 0.1 Algo is required.
What happened in august/2020 for the huge increase in transactions?
These are probably PROPS transactions, i.e. mobile users are rewarded with PROPS coins.
What is tradeable supply and what explains the spike of tradeable supply in the beginning of september?
A very good question, I am interested, too!
What is tradeable cap?
I think, the capital value of tradeable supply.
What is the meaning of circulating supply and total supply here? [Algorand Asset ](https://algoexplorer.io/asset/31566704)
These are USDC statistics. You can create a coin, and at creation time you can specify the total supply. You can then move some portion of the total supply to tradeable address, one or more times.
Is it possible to see anywhere the composition of Algorand transactions (the ones related to tether, USDC, etc)?
I don't think so.
Just holding Algo in my binance wallet I receive staking interest? Binance charge any fee on that?
Google is your friend, see: https://support.binance.us/hc/en-us/articles/360047428213-Binance-US-Supports-Algorand-ALGO-Staking

Thanks Maugli! I didnt know about this 0.1 Algo, but it makes sense. I asked this, because I was wondering if it as possible to capture the value of increasing use of stablecoins by ALGO or another crypto. But it seems that the impact is still limited…

thanks for the other answers!

You are welcome.

What I really miss is a Technical and a Financial Roadmap for Algorand.

Professor Micali published some of the planned developments for 2021, see:
Algorand 2021 Performance

Just one sentence from it:

The [...] TPS will grow from 1000 to 46000.

Also, if there is at least 1 Algo on your account, then you get “staking” reward.
See Algorand Staking Rewards Calculator

I really believe there is good perspectives for Algorand Network as more stablecoins and assets come to the platform this year. But my doubt is how holding Algo token will capture this value.

From transactions fee, it would need a huge increase from where we are now. Another thing I was thinking is about the right to vote in network upgrades decisions. What is the value for that If you have a established financial market built on the top of Algorand Network?

From your post, I learned that 0.1 Algo also will come from each account. But it still seems to be low.

I would like to find another reasons for people and institutions buying Algo token. As real use case and not just speculation.

1 Like