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Algorand Foundation CEO Predicts Prevailing Bear Cycle to Extend till the End of 2022

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The crypto market has been ailing over the last five months, notwithstanding brief recovery periods at the end of March and beginning of April.

The total market capital of the sector has fallen by approximately 43.50% since the start of the year, from $2.189 trillion to $1.237 trillion at the time of writing as per CoinMarketCap. Bitcoin (BTC), Ethereum (ETH), and many other top altcoins, including Algorand (ALGO), have charted massive losses during this period.

In a Thursday interview with CoinDesk TV, Algorand Foundation CEO Staci Warden set forth that the storm is yet to pass. Warden projected that the bearish cycle will likely continue at least until the end of the year.

“Nobody loves the bear market […] but it is an opportunity for the market to separate the weak from the strong. This [bear market] will last at least through 2022, I think,” she remarked on the current state of the market.

‘Projects with no use cases may or may not survive, but Algorand will'

Warden observed that some blockchain projects, especially those without use cases, may not be able to weather the storm. She added that the Algorand ecosystem will have no problem surviving the market conditions.

“Protocols, initiatives, and developers that are meme-based and don't have real-world applications may or may not survive the crypto winter, but the builders on Algorand will survive,” she said. “Algorand is investing and positioning itself for the long-term.”

She also disclosed that Algorand is seeking to close many partnership deals, having already been named FIFA's official blockchain partner for the World Cup. On the recent Terra fallout, the Algorand executive noted that algorithmic stablecoin projects will advance undeterred by the Terra ecosystem collapse. Notably, the Foundation announced a $1 million fund to help host migrating Terra developers.

Algorand funds FlexID to offer self-sovereign IDs

Zimbabwean startup FlexID is on a mission to provide exposure to financial services for the unbanked, among several other goals it has with the planned launch of self-sovereign IDs (SSIs). The Algorand network has taken an interest in the same and is the first to provide funding for this project pioneered by serial entrepreneur Victor Mapunga.

The endgame is to enhance financial inclusivity i.e. introducing the informal sector to the formalized economic space. The launch of FlexID will see the use of a blockchain-based identity system to enlist all those excluded by the banking sector due to their lack of identification documents. Towards this goal, the platform is solving a problem prevalent not only in Africa but also in emerging economies.

Unique to FlexID's approach to solving the identification problem is the decentralized approach it took. All of Smile Identity, Identitypass, and Dojah have already provided centralized solutions. Still, FlexID aims to create a decentralized ID network of the more than 1 billion people who lack official documentation.

Beyond just powering finance, FlexID's SSI is well-positioned to enable access to other essential services, including education, healthcare, and farming.

Rising crypto projects in Africa

FlexID's funding details remained undisclosed, but it comes at a time when several African crypto startups are raking in capital. In addition to the money, the level of exposure coming with the funding is essential in enabling these projects to spread their wings and see traction in user adoption.

In the case of FlexID, it will gain exposure to the ecosystem of decentralized applications on the Algorand network following the new partnership. With more and more companies such as FlexID emerging in the crypto space in Africa, there's reducing user dependency on cash through the removal of barriers for crypto in utilities such as remittances.

pNetwork launches its cross-chain protocol on Algorand

Cross-chain composability system pNetwork last April announced a partnership with the Algorand network that would allow porting of native assets between the blockchain and other networks.

More than one year down the line, pNetwork has announced the launch of its cross-chain protocol on the Algorand network. With cross-chain compatibility, Algorand users and smart contracts can now port between the native network and one of the several blockchains supported by pNetwork.

pNetwork now supports 15 distinct blockchain networks, including several Layer 1 and Ethereum Layer 2 ecosystems such as Bitcoin, Binance Smart Chain, Ethereum, and Polygon. Notably, the Algorand cross-chain bridge is powered by pNetwork v2. The first of the bridges to launch would connect Bitcoin to the Algorand network.

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.