What could affect the price of ALGO?

Algorand’s price outlook depends on upcoming technology upgrades, real-world use cases, and changes in market sentiment.

1. Roadmap Progress – Planned upgrades after 2025 aim to boost business adoption (positive)
2. Regulatory Changes – US policy shifts and Tether’s withdrawal bring mixed effects
3. Real-World Asset Growth – Partnerships for tokenizing assets balanced against speculative use (neutral)

In-Depth Look

1. Roadmap-Driven Adoption (Positive Impact)

Overview:
Algorand’s roadmap for 2025 and beyond (Cointelegraph) focuses on tools for businesses, like the upcoming Rocca Wallet (previewed for late 2025) and security upgrades designed to resist future quantum computing threats. Collaborations with organizations like FIFA and trials involving central bank digital currencies (CBDCs) aim to establish Algorand as a trusted blockchain for institutions.

What this means:
If these plans succeed, Algorand could attract significant investment from institutions, especially in tokenized assets—a market expected to reach $16 trillion by 2030. However, delays or technical problems could slow this momentum.

2. Regulatory Pressure & Stablecoin Changes (Mixed Impact)

Overview:
In August 2025, Tether announced it would stop supporting USDT stablecoins on Algorand (Bitget), removing a major source of liquidity. On the other hand, Circle minted $99 million in USDC stablecoins on Algorand (Binance), which helps offset some of that loss. Additionally, Algorand joined the Blockchain Association in June 2025, strengthening its voice in policy discussions.

What this means:
Less stablecoin activity might reduce transaction fees and developer interest in the short term. Still, Algorand’s active role in regulatory conversations could position it well if new US laws like the GENIUS Act pass.

3. Real-World Asset (RWA) Adoption (Neutral Impact)

Overview:
Algorand currently supports over $90 million in real-world assets locked on its platform (Community Post), with real estate platform Lofty leading the way. However, discussions in the Algorand community (Algorand Forum) question whether using ALGO as a utility token truly increases its value.

What this means:
While growth in real-world asset tokenization shows Algorand’s technical strength, it may not directly boost ALGO’s price unless the token’s economic design better captures value from these business activities.

Conclusion

Algorand’s price is influenced by a balance between its enterprise-focused technology and speculative market forces. The roadmap and regulatory progress could push prices into the $0.30 to $0.50 range. However, losing USDT liquidity and unclear benefits for ALGO holders present challenges.

Key metric to watch: Can Algorand maintain daily active addresses above 1.2 million (Nansen) without causing network congestion?

What are people saying about ALGO?

The Algorand (ALGO) community is divided between excitement over potential price gains and questions about its real-world usefulness. Here’s what’s currently trending:

1. Technical analysts see signs that ALGO could break above $0.30
2. Some experts doubt if recent transaction increases are sustainable
3. The Algorand Foundation is focusing on partnerships with real-world assets (RWA) and improving decentralization
4. Pilot projects involving tokenized banking are boosting confidence among institutions

Deep Dive

1. Bullish Technical Signals from @johnmorganFL

"Emerging bull flag and double bottom pattern suggest 40% upside if ALGO holds $0.25 support"
– @johnmorganFL (89K followers · 2.1M impressions · July 13, 2025)
View original post

What this means: Technical traders are watching for ALGO to break above $0.27. If that happens, it could trigger automated buying across exchanges, potentially pushing the price above $0.30. This is a positive sign for ALGO’s price outlook.

2. Bearish Concerns from @RealAllinCrypto

"Revenue down 60% since June despite price surge – where’s the fundamental growth?"
– @RealAllinCrypto (142K followers · 890K impressions · September 4, 2025)
View original post

What this means: Despite ALGO’s price going up, the network’s daily revenue has dropped significantly—from $70,000 at its peak to just $6,000 now. This suggests that the price increase might be driven more by speculation than by actual growth in usage or adoption, which is a warning sign.

3. Positive Outlook from @AlgoFoundation

"2025+ plan emphasizes economic sustainability and quantum-resistant security upgrades"
– @AlgoFoundation (213K followers · 3.4M impressions · July 31, 2025)
View original post

What this means: The Algorand Foundation is focusing on long-term goals like making the network more economically sustainable and upgrading security to protect against future quantum computing threats. These improvements could attract businesses, especially in regulated industries like banking, making ALGO more valuable.

4. Institutional Optimism from @LordOfAlts

"Federally insured tokenized dollar pilot positions Algorand as backbone for compliant RWAs"
– @LordOfAlts (68K followers · 1.7M impressions · August 28, 2025)
View original post

What this means: A pilot project with VersaBank is testing tokenized dollars that are federally insured, using Algorand’s blockchain. If successful, this could position Algorand as the go-to platform for institutions managing real-world assets, handling over $2 million in daily transactions. This is a strong positive for ALGO’s future.

Conclusion

The overall view on Algorand (ALGO) is mixed. Technical analysis points to possible price gains between $0.30 and $0.47, but some fundamental data raises caution. Network activity and derivatives markets show careful buying rather than a full-blown rally. Keep an eye on the $0.2720 resistance level—if ALGO closes above this on a weekly basis, it could confirm both the technical breakout and growing adoption of real-world assets on the platform.

What is the latest news about ALGO?

Algorand is navigating changes in stablecoins and testing real-world banking applications. Here’s the latest update:

1. Tether Stops Supporting ALGO (August 30, 2025) – USDT stablecoin frozen on Algorand, which could affect liquidity.
2. VersaBank Pilots Tokenized Dollar (August 28, 2025) – A federally insured digital dollar pilot could increase institutional use of Algorand.
3. 2025+ Roadmap Released (July 31, 2025) – Focus on improving DeFi scalability and adding quantum-resistant security features.

Deep Dive

1. Tether Stops Supporting ALGO (August 30, 2025)

What happened: Tether, the company behind the USDT stablecoin, will stop supporting USDT on Algorand by September 1. This change also affects Solana and Tron networks. Algorand only made up a small part of USDT’s $167 billion market, but this move could temporarily reduce liquidity for Algorand-based decentralized finance (DeFi) apps.
What it means: This is a short-term negative for ALGO because less USDT activity could reduce trading and transactions on Algorand. However, Algorand still supports other stablecoins like USDC, which helps reduce long-term risks. (Bitget)

2. VersaBank Pilots Tokenized Dollar (August 28, 2025)

What happened: VersaBank, a Canadian bank, is testing a new digital dollar called USDVB on Algorand, Ethereum, and Stellar blockchains. This tokenized deposit is federally insured and aims to get approval from the Office of the Comptroller of the Currency (OCC), targeting institutional investors.
What it means: This is positive news for Algorand’s reputation in traditional finance. If approved, USDVB could make Algorand a key platform for fast, compliant financial transactions, helping offset the impact of Tether’s exit. (LordOfAlts)

3. 2025+ Roadmap Released (July 31, 2025)

What happened: Algorand announced plans to improve security against future quantum computer threats, develop AI-powered tools for developers, and launch a user-friendly self-custody wallet called Rocca. They also plan to decentralize governance through a system called xGov by the third quarter of 2025.
What it means: These upgrades are generally positive for Algorand’s long-term growth. While there are risks in delivering these improvements, the focus on institutional-grade features aligns well with partnerships like VersaBank. (Algorand Foundation)

Conclusion

Algorand is facing mixed challenges: Tether’s withdrawal may cause short-term liquidity issues, but VersaBank’s digital dollar pilot and upcoming security upgrades strengthen its appeal to institutions. The key question is whether Algorand’s growing real-world use will outweigh the volatility caused by changes in stablecoin support.

What is expected in the development of ALGO?

Algorand is making progress with these key updates:

1. xGov Grant Applications (September 2025) – A new way for the community to fund projects that improve the Algorand ecosystem.
2. Rocca Wallet Preview (Q4 2025) – A user-friendly wallet that removes complicated seed phrases, making it easier for everyday users to manage their assets.
3. Algokit 4.0 Launch (First Half of 2026) – Advanced developer tools powered by AI, supporting multiple programming languages to help build apps faster and across different blockchains.

Deep Dive

1. xGov Grant Applications (September 2025)

Overview:
The xGov platform, which went live in August 2025, will start accepting grant applications in September 2025. This system is fully on the blockchain, meaning community members can propose ideas and vote on funding projects that benefit the network. The initial budget for these grants is 3 million ALGO tokens per year (Algorand Foundation).

What this means:
This is a positive development for ALGO because it gives the community more control and encourages innovation. However, the success depends on how many people participate in voting and the quality of the projects proposed.

2. Rocca Wallet Preview (Q4 2025)

Overview:
The Rocca Wallet removes the need for seed phrases, which are often confusing and risky for users. Instead, it uses passkeys and decentralized identity (DID) technology for logging in. This wallet is designed for people who are new to cryptocurrency, aiming to help both everyday users and institutions adopt Algorand more easily (CoinMarketCap).

What this means:
This update is somewhat positive. Making wallets easier to use can attract more users, but its success will depend on how well it works with other apps and how effectively it is marketed against established wallets.

3. Algokit 4.0 Launch (First Half of 2026)

Overview:
Algokit 4.0 will bring AI-powered coding assistance, support for popular programming languages like Rust, Swift, and Kotlin, and ready-made smart contract templates. These improvements aim to attract developers from traditional software backgrounds and make it easier to build apps that work across different blockchains (CryptoSlate).

What this means:
This is a strong positive if developers adopt the new tools. Better tools can speed up app development and expand Algorand’s ecosystem. However, delays or poor documentation could slow down progress.

Conclusion

Algorand’s roadmap focuses on giving the community more control, improving user experience, and empowering developers. Important things to watch are how many xGov proposals get approved, how widely the Rocca Wallet is adopted, and how many developers start using Algokit 4.0. These updates could help ALGO become a leader in regulated tokenization and decentralized finance for institutions.

What updates are there in the ALGO code base?

Algorand's latest updates focus on making the network faster, improving DeFi tools, and enabling easier transfers between different blockchains.

1. Dynamic Round Times (Q3 2025) – Block times are now faster, averaging 2.8 seconds.
2. AVM v10 Upgrade (Q3 2025) – Added advanced math features and better resource sharing for smart contracts.
3. Wormhole NTT Integration (July 1, 2025) – Allows native token transfers across more than 40 blockchains.

Deep Dive

1. Dynamic Round Times (Q3 2025)

What happened: Algorand’s update v3.21 introduced a system that adjusts how quickly blocks are created based on real-time network conditions. This cut the average block time from 3.4 seconds to 2.8 seconds, making the network more responsive without losing security or decentralization.

Why it matters: Faster blocks mean transactions get confirmed quicker, improving the experience for users and applications like payments and decentralized finance (DeFi). This is a positive development for Algorand (ALGO). (Source)

2. AVM v10 Upgrade (Q3 2025)

What happened: The Algorand Virtual Machine (AVM), which runs smart contracts, now supports more advanced cryptographic functions like elliptic curve math. It also introduced features that let developers better manage resources when running multiple transactions together.

Developers can now calculate minimum balances needed for Algorand Standard Assets (ASA) directly within smart contracts, making DeFi applications easier to build.

Why it matters: These improvements enable more complex and secure applications, including privacy features like zero-knowledge proofs. This upgrade supports institutional adoption by making DeFi development smoother and more powerful. (Source)

3. Wormhole NTT Integration (July 1, 2025)

What happened: Algorand integrated Wormhole’s Native Token Transfer (NTT) standard, allowing tokens such as USDC to move directly between Algorand and over 40 other blockchains without needing to be “wrapped” or converted.

This means developers can create cross-chain tokens more easily, reducing liquidity fragmentation across different networks.

Why it matters: While this doesn’t immediately impact ALGO’s price, it strategically positions Algorand as a key player in multichain DeFi ecosystems by improving cross-chain token flow. However, it depends on third-party infrastructure. (Source)

Conclusion

Algorand’s recent technical upgrades focus on real-world usability: faster transaction finality for payments, more advanced DeFi features, and better access to liquidity across blockchains. With these improvements, the big question is whether developer activity and total value locked (TVL) will grow to match the platform’s enhanced capabilities.

Why did the price of ALGO fall?

Algorand (ALGO) dropped 5.35% in the last 24 hours, underperforming the overall crypto market, which fell 2.39%. The main reasons are:

1. Tether (USDT) stopping support on Algorand (negative impact)
2. Technical price breakdown below key support levels (negative impact)
3. Wider market risk-off sentiment with rising leverage

In-Depth Analysis

1. Tether’s USDT Phase-Out (Negative Impact)

What happened:
On August 30, 2025, Tether announced it will stop supporting USDT on the Algorand blockchain starting September 1. This means about $842,000 worth of USDT tokens on Algorand will be frozen. You can read the official announcement here.

Why it matters:

• Stablecoins like USDT are important for decentralized finance (DeFi) activities on Algorand. Less USDT means less liquidity, which could slow down these activities.
• Although USDT on Algorand is a small part of the total market (only 0.04% of Algorand’s $2.15 billion market cap), the news caused some investors to sell due to concerns about the ecosystem’s health.

What to watch:
Keep an eye out for any tools or solutions that help USDT holders move their tokens off Algorand, though none have been announced yet.

2. Technical Breakdown (Negative Impact)

What happened:
Algorand’s price fell below two important moving averages: the 30-day Simple Moving Average (SMA) at $0.2384 and the 200-day Exponential Moving Average (EMA) at $0.237. The Relative Strength Index (RSI) over 7 days dropped to 26.19, indicating the coin is oversold.

Why it matters:

• This price drop breaks a bullish pattern that had been forming from May to July 2025, suggesting further weakness.
• The next major support level is around $0.2067, the lowest price in 2025. If the price falls below this, it could trigger automatic selling by trading algorithms.

What to watch:
The Fibonacci retracement level near $0.207, which is a key point from June’s swing low, could act as support.

3. Crypto Market Pullback (Mixed Impact)

What happened:
The overall crypto market value dropped 2.39%, from $3.87 trillion to $3.78 trillion. Altcoins like Algorand fell more than Bitcoin, with altcoins down 3.17% compared to Bitcoin’s 1.99%.

Why it matters:

• Algorand tends to be more volatile than Bitcoin, with a beta of 1.5, so it experienced bigger losses during this risk-off period.
• Data from derivatives markets shows a 24.48% increase in open interest over 24 hours, indicating many leveraged long positions are being closed out, adding selling pressure.

Conclusion

Algorand’s recent price drop is due to a combination of factors: Tether’s withdrawal causing concern, technical breakdowns signaling weakness, and a broader market sell-off driven by rising leverage. While the coin is currently oversold and could bounce back, holding the $0.20 to $0.207 price range is crucial.

Key point to watch: Can Algorand’s upcoming partnerships, like the one with Wormhole NTT, help offset the negative effects from losing stablecoin liquidity?