Only 9% of Algorand (ALGO) Investors Are in Profit Amid Strong Holder Conviction

Algorand (ALGO) stands out with peculiar statistics. Data from IntoTheBlock indicates that only 9.39% of ALGO holders are currently in profit.

Nonetheless, 88.40% of investors persist in holding their stakes despite not seeing immediate gains.

Analyst Eye Algorand Breakout: 26% Surge Incoming？

This enduring loyalty is noteworthy. On average, Algorand investors keep their tokens for nearly 11 months. This duration surpasses Avalanche‘s six-month average and is just shy of Cardano’s one-year tenure.

Such extended holding periods suggest a strong belief in Algorands future potential. However, some holders might also wait for the break-even to dump their tokens.

Global In/Out of the Money. Source: IntoTheBlock

The concentration of ownership within Algorand indicates deep-rooted confidence. Large stakeholders now possess 20.7% of the total ALGO supply, marking an increase from 19.4% since May. This accumulation by major holders typically signifies a bullish outlook, reflecting expectations of future price increases.

Additionally, the Algorand network is bustling with activity. It currently has over 54,000 daily active addresses, which exceeds those of Dogecoin and Avalanche. The platform also reports consistent growth, now hosting over 21 million active addresses.

Transaction activity on the Algorand network shows a positive trajectory. Since late 2023, the number of transactions has doubled, now averaging 1.36 million daily.

The majority of these transactions are valued at less than $1. This pattern is likely due to the prevalence of automated transactions and smart contract interactions facilitated by Algorands low-cost fee structure.

Intriguingly, market analysts have not ignored Algorand‘s economic efficiency. The network’s fee policy charges around 0.001 ALGO for each transaction, promoting a high operations volume.

From a technical analysis perspective, ALGO has been trading between $0.200 and $0.169 since April 26. Analysts predict a breakout above the $0.200 mark could lead to a 26% price surge, targeting $0.229.

Algorand (ALGO) Price Performance. Source: TradingView

Such dynamics have piqued the interest of crypto traders like Santolita.

“With a focus on scaling performance without compromising decentralization, ALGO offers low-cost transactions in an institution-grade framework,” Santolita said.