Blockchain Analytics | Algorand Insights from the Algoexplorer Statistics
Real adoption of Blockchain technology has materialized in various business sectors, if not all. During the next decade, we will see several blockchain projects innovating and competing with each other to grab market share. Many that we know today will be forgotten, while others will prevail through their long-term approach to scalability and security. Without a doubt, Algorand’s blockchain offers a wide variety of advantages without sacrificing scalability, security, and decentralization.
This article will explore some of the KPIs and data revealed on the Algoexplorer statistics page that allows us to conclude that Algorand has the technology to meet the needs of any blockchain application; therefore, outperforming its counterparts.
Algoexplorer is the leading Algorand Blockchain Explorer. It works by extracting data from the blockchain’s distributed ledger, indexing and displaying the processed data in a concise and readable manner.
We will look at different metrics and applications seen on the Algorand blockchain, including:
- Transactions performance
- Transactions cost
- Network growth (Addresses, Transfers)
- Economic Indicators
- Assets and Stablecoins
Transactions performance:
Without forking and with an impressive speed per block, transactions are confirmed in less than 4.5 seconds, comparable with current large payment and financial networks.
What about scalability?
Today Algorand supports 5,000 transactions per block which outperforms other major blockchain alternatives. Nevertheless, in the coming months, Algorand will implement a new update that will shorten the block finalization time to 2.5 seconds and 25,000 transactions per block using a block pipelining approach. This will skyrocket the transactions per second that Algorand can handle without sacrificing the decentralization or security of the protocol.
In March 2021, Algorand surpassed Ethereum for the first time with the highest number of transactions in a month. While Ethereum had 39.2 million transactions, Algorand registered an impressive 40.5 million transactions:
Transactions cost:
Why pay a hefty amount for transaction fees? Algorand’s protocol fixed fees are as low as $0.001 (≈ $0) per transaction regardless of the transaction size. Algorand’s protocol supports multi-signature transactions which means that more addresses can participate at the same cost.
Network growth (Addresses, Transfers):
New active addresses grew from 20k to 8m during 2020, an increase of 40,000% during that year. In 2021 the growth trend continues and with no indication that it will slow down. This is mainly due to the new tokenized projects that have been deploying in the Algorand’s network as well as the worldly adoption of Algo in the exchanges and within the crypto users.
Economic Indicators:
Algo has increased in price by ≈500% from January 2020. However, the most prominent KPI is the raise of the tradable supply amount while still increasing in price, surging the value of Algorand, as measured with the Tradable Market Cap. From the beginning of the year 2021 till 6 months later, the amount of tradable Algos has doubled from 1.5 billion to 3 billion.
This new supply was distributed through rewards from Algorand’s native staking, grants from the Foundation to developing protects, and Relay Nodes. The acceleration in distributions has helped the decentralization of Algorand: distinctly seen in the break of accounts with balances greater than 100M Algos.
Assets and Stablecoins:
If someone wanted to transfer 100 USDC or USDT (ERC-20), it would cost approximately $10 in Ethereum gas fees and takes 2 minutes for the transfer to be finally confirmed.
Algorand offers the scalability and velocity that Ethereum is lacking. Now users can transact in their preferred stablecoin at a fraction of the cost and time by using USDC and USDT on Algorand.
Using the Algorand Standard Asset (ASA) primitives in the protocol, projects and developers can easily launch new tokens while leveraging the full power of Algorands decentralization, scalability, and security. This means that ASAs are transferred as fast and as cheaply as the Algo itself.
Rand Labs is building infrastructure products that form the rails of the future financial industry. From multisig wallet technologies to advanced blockchain explorers, to free and open APIs, we are creating the building blocks that will power the neo-banks, asset managers, DeFi protocols, and applications of the future post-bank era of finance.
