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Algorand's native token, ALGO, posted decent gains earlier this week, recovering from a brief dip to a multi-month low of $0.2765. The token bounced to a 7-day high of $0.343 on Tuesday but lost momentum, along with a chunk of the gains, as the market turned red. ALGO is at the time of writing 3.7% down on the day and trading at $0.32.
Though the token is currently holding above $0.30, it will likely see another pullback below this mark in the short-term to uncharted territory in almost a year and a half if current conditions prevail. This will potentially create an opportunity for buyers looking to get into the market who can scoop the altcoin.
Still, it is worth noting that with bulls backed to the wall, ALGO price action in the near term will also significantly be influenced by the course of the lead crypto, Bitcoin, owing to their high correlation the two have shown up until last week.
Outside the market, the Algorand Foundation has continued making technical as well as strategic partnerships to advance the ecosystem. The Algorand chain has also proved ideal for entities looking for a blockchain host for their projects. So far, in Q2, the blockchain has been associated with several brands, including FIFA, Keon Finance, Nimble, and Developing Africa Group.
Most recently, Algorand became integrated with the unified digital asset management platform Taurus. The deals have, however, not prevented the token from deteriorating amid the harsh market conditions. This month, the ALGO token has shed approximately 22% bringing the losses recorded on the price of the alt since the start of May to 47%.
Taurus integrates with Algorand
Digital asset manager Taurus, last week, fully integrated with the Algorand blockchain, facilitating its blockchain connectivity infrastructure, Taurus-EXPLORER, to support Algorand. As per the blog post confirming the partnership, the integration means that Taurus brought support for the native ALGO token, staking capabilities of the ticker, and Algorand Standard Assets (ASA).
The move means that the bank-focused custodial platform will enable clients to leverage ASA to gain staking rewards by dabbling with the tokenized assets under the ASA. Algorand's Business Solutions Director for Europe noted that the partnership offers banking entities a new way to interact with Algorand's mainnet, to gain from its high speeds, scalability potential, and security, all this while ensuring the least possible environmental impact.
Co-founder and Chief Security Officer at Taurus, Dr. Jean-Philippe Aumasson, on the other hand, said the decision to partner with Algorand came amidst increased interest from clients to interact with Algorand's asset tokenization, towards the ambition of creating the broadest possible array of use cases for its users.
pNetwork brings USDC and USDT to Algorand
Algorand users have in the past had to engage with centralized crypto exchanges to interact with the top two stablecoins by market cap – USDT and USDC.
This has changed with pNetwork, a cross-chain system enabling interoperability between smart contracts, launching cross-chain support between Ethereum and Algorand for the two stables. pNetwork seeks to eliminate the problems of multiple versions of the same token on a blockchain on account of multiple wrapping.
Algorand users can receive USDC and USDT as it is from the Ethereum blockchain. The two stablecoins are wrapped via pNetwork's Algorand bridge to complete the cross-chain transfers. The pUSDC and pUSDT wrapped tokens are then swapped for native stables on Algorand via stableswap, an underlying liquidity pool.
Overall, users can move USDC and USDT between Ethereum and Algorand in an instant and with ease. All the heavy lifting is done by the platform such that the end-user only completes cross-chain asset transfers with the click of a button. This speeds up the entire process and saves the user from the complexity of cross-chain swaps.
To learn more about Algorand visit our Investing in Algorand guide.
Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.