Should You Buy Algorand in 2025?

Algorand in brief

How much does 1 Algorand cost?

The price of Algorand is up this week. Currently, Algorand is trading at £0.13, with a 24-hour change of +2.1% and a 7-day performance of +5.4%. Its market capitalisation stands at £1.05 billion, with an average 3-month daily trading volume around £38 million. Algorand ranks 56th by market cap, with 8.03 billion ALGO in circulation and a market dominance of 0.08%.

As with many cryptocurrencies, price movements can be swift, offering both opportunities and risks for UK investors.

Our full review of the cryptocurrency Algorand

After meticulously reviewing the latest trends of Algorand (ALGO) and its trajectory over the past three years, our analysis leverages a sophisticated blend of on-chain metrics, technical signals, market data and a competitive landscape deep-dive, all synthesized via proprietary algorithms. These tools enable us to offer a high-conviction crypto-financial perspective grounded in both data and current macro conditions. So, why might Algorand regain its status in 2025 as a strategic entry point in next-gen blockchain infrastructure?

Recent Performance and Market Context

Recent Price Evolution

Since its mainnet debut in 2019, Algorand has shown a robust capacity for adaptation, with the last three years reflecting a cycle of both consolidation and dynamic price discovery. Coming off recent lows in late 2022, ALGO entered 2023 fueled by renewed risk appetite across digital assets, climbing from around $0.17 to the $0.20–0.22 range through H1 2024. As of June 2024, ALGO trades near $0.20, benefiting from broad-based sector support and improving sentiment towards ecosystem coins.

Notable Positive Events

• High-profile strategic partnerships: Collaborations with FIFA for digital ticketing and fan engagement have expanded Algorand’s mainstream appeal.
• Incremental protocol upgrades: Continuous improvements to throughput and Layer 1 smart contract performance have solidified ALGO's technical credibility.
• Ecosystem grants and accelerator launches: Multiple DeFi, NFT, and real-world asset projects have chosen Algorand for its technical efficiency and low-cost execution.

Macro & Sector Tailwinds

2024 has ushered in a global resurgence of institutional allocation into crypto, spurred by persistent inflationary pressures, de-dollarization trends, and mainstream ETF approvals in the United States and the UK. Notably, Layer 1 protocols exhibiting strong fundamentals and genuine use-cases—such as Algorand—now benefit from greater scrutiny and renewed investor optimism, especially as regulatory clarity improves and sustainability considerations (energy efficiency) gain foreground.

Technical Analysis

Key Crypto Indicators

• Relative Strength Index (RSI): ALGO’s daily RSI oscillates between 43-55, suggesting room for further upside without entering overbought territory.
• MACD: The MACD signal recently flashed a bullish crossover on both daily and weekly timeframes—historically, a precursor to momentum-driven surges.
• Moving Averages: Price holds above the 50-day moving average ($0.20), with the 200-day MA at $0.21 acting as near-term resistance; a close above signals a transition toward medium-term bullish territory.

Solid Supports, Reversal Signals

• Support: Historically resilient at the $0.16–$0.18 band—active buy zones marked by high-volume accumulation events.
• Bullish Reversal: Continuation patterns and breakout setups from current levels suggest potential for extension toward $0.25+ in the coming months if macro trends hold.

Positive Structure, Short/Mid-Term Momentum

The combination of sustained higher lows and a compression of volatility hints at the formation of a bullish pennant—a classic precursor to breakout rallies, especially when reinforced by on-chain data showing increased wallet activity and declining exchange balances.

Fundamental Analysis

Growing Adoption & Strategic Partnerships

• Government & Enterprise Use Cases: Ongoing partnerships in regions like Latin America (e.g., national digital currency pilots), North Africa, and Asia.
• Ecosystem Expansion: Rapid acceleration in DeFi TVL (+30% YTD), launch of dedicated NFT marketplaces, and a surge in Layer 2 integrations.
• Developer Traction: Robust grant programs, leading to a growing developer community and innovative DApp launches.

Attractive Relative Valuation

• Market Cap: As of June 2024, ALGO’s capitalization stands at ~$1.6 billion—well below prior bull market valuations, positioning it attractively relative to similarly featured L1 networks.
• Fully Diluted Valuation (FDV): Priced at a moderate premium versus TVL and active users.
• TVL: Over $240 million locked, with new protocols migrating to Algorand citing low fees and high reliability.

Structural Strengths

• Technological Differentiation: Pure Proof-of-Stake (PPoS) consensus delivers both speed (finality
• Active Community: Algorand Foundation’s global hackathons, education programs, and local meetups underline strong grassroots support relative to peers.
• Market Differentiation: Notably, the platform’s focus on compliance-ready features continues to attract both enterprise and institutional partners.

Volume and Liquidity

• Trading Volume: 24h volumes average above $70 million, demonstrating strong market participation and depth across major centralized and decentralized venues.
• Liquidity: Consistently ranked among the top 50 for spot liquidity, backed by diverse order book support.
• Position Among Top Caps: While off its all-time highs, ALGO remains solidly in the top-tier Layer 1s by market cap, with future room for upward mobility as capital rotates into "quality" protocols.

Catalysts and Positive Outlook

Upcoming Protocol Upgrades

• Major network upgrade: Slated for Q2 2025, introducing state proofs and enhanced cross-chain operability, potentially unlocking significant new utility.
• Integration into RWA and asset tokenization pilots: Deployment by institutional-grade platforms and central banks continues, especially as global financial infrastructure trends toward blockchain-native rails.
• DeFi and NFT Ecosystem Growth: Ongoing launch of innovative DeFi primitives (liquidity vaults, stables, cross-chain bridges) and high-profile NFT collaborations.

Regulatory & Institutional Drivers

• Growing institutional adoption: Positive regulatory dialogue in the UK/Europe supporting "green" chains and carbon offset features; Algorand stands out as a leading eco-efficient protocol.
• Rising interest for digital assets from global asset managers: Their "ESG" focus dovetails neatly with Algorand’s energy profile.

Investment Strategy According to Horizon

Short-Term (Weeks–Months)

• Price compression and recent technical breakouts offer tactical entry points for active market participants. Taking positions on minor pullbacks toward the $0.18–$0.19 support, while targeting the next wave above $0.24, could suit traders with a nimble, risk-managed approach.
• Upcoming network upgrade/testing phases can be monitored for pre-catalyst accumulation opportunities.

Medium-Term (6–12 Months)

• Ecosystem expansion and integration with real-world financial institutions position Algorand for mid-term appreciation.
• Investors targeting exposure to infrastructure plays with a combination of DeFi and real-world utility might find accumulation between $0.18 and $0.22 consistent with diversified crypto portfolios.

Long-Term (>1 Year)

• The alignment of innovation (RWA pilots, ESG narrative), competitive valuations, and an expanding addressable market make ALGO a potentially lucrative hold for patient, conviction-driven capital.
• Strategic positions prior to or just after confirmed protocol upgrades could maximize upside capture as sustained adoption unfolds.

Algorand Price Predictions Table (Markdown)

Is Now the Right Time to Consider Algorand?

Algorand combines a compelling track record of technological resilience, institutional adoption and ecosystem growth—attributes that, amid a rapidly evolving market, seem to represent an excellent opportunity for forward-thinking investors. The project’s competitive valuation, improving technical indicators, and imminent upgrade pipeline further reinforce a scenario where the fundamentals justify renewed interest. With sustained volume, robust support levels, and positive sector momentum, Algorand could well be on the cusp of a new bullish phase.

In summary, for investors seeking to position themselves in a high-potential Layer 1 protocol—bolstered by real-world adoption, sustainability credentials, and a resurgent community—Algorand appears exceptionally well-placed as we approach 2025. Algorand remains a highly volatile asset that offers strong potential for dynamic portfolio strategies, but rigorous risk management remains essential. The latest price action underlines the protocol’s capacity for swift, powerful moves—yet evolving macro factors call for a selective approach. Key technical levels to monitor include $0.18 as immediate support and $0.25 as a primary resistance, with the next major protocol upgrade in Q2 2025 likely to be a decisive catalyst for Algorand’s future trajectory.

How to buy Algorand?

It’s simple and secure to purchase the Algorand cryptocurrency online using a regulated platform in the UK. You have two main options: spot buying, where you own Algorand directly in a wallet, or trading via contracts for difference (CFDs), which lets you speculate on Algorand’s price without owning the actual coins. Each method comes with its own benefits and risks, and both can be accessed with just a few clicks. For a side-by-side comparison of popular platforms available in the UK—including key fees and features—refer to our detailed comparison table further down this page.

Spot Purchase

Spot purchase means buying Algorand (ALGO) on an exchange and holding the actual tokens in a wallet you control. This method gives you direct ownership: you can transfer ALGO, use it, or hold it long term. Spot transactions typically incur a fixed commission per purchase (e.g. 0.5%–1.5%) plus a small network fee.

Important example

Example: If ALGO is priced at £0.14 per coin, a £1,000 investment allows you to purchase around 7,140 ALGO (factoring in approximately £5 in transaction fees). Potential gain: If Algorand’s price rises by 10%, your wallet is now worth £1,100. Result: a gross gain of £100 (+10%) on your original investment.

Trading via CFD

CFD trading allows you to speculate on Algorand’s price without owning the asset itself. You open a position through a regulated broker, choosing your stake size and, optionally, leverage. The main fees here are the bid/ask spread and overnight financing if you keep positions open multiple days.

Important example

Example: You open a CFD position on Algorand with £1,000 and 5× leverage, giving you £5,000 market exposure. Potential gain: If the price of Algorand rises by 8%, your position gains 8% × 5 = 40%. Result: £400 gain on your £1,000 initial margin (excluding fees).

Final Advice

Before investing, it’s crucial to compare each platform’s fees, regulations, and trading conditions, as these can significantly influence your returns. Ultimately, the right method depends on your investment goals and experience: spot buying is typically suitable for long-term holders, whereas CFD trading appeals to more active or experienced investors. Be sure to check our platform comparison tool below to help you choose the option that fits your needs.

Our 7 tips for buying Algorand

The latest news from Algorand

Algorand Foundation joined the UK Cryptoasset Business Council in early June, supporting local digital asset advocacy. On 4 June 2024, the Algorand Foundation announced its membership in the UK Cryptoasset Business Council (UKCBC), a significant move to bolster its presence and engagement within the UK market. This partnership is aimed at strengthening the dialogue between crypto industry stakeholders and UK regulators, advocating for clear, innovation-friendly policy, and championing the adoption of digital assets, including Algorand’s technology, in the British economy. This development positions Algorand alongside leading industry voices as the UK finalises its stablecoin and crypto regulatory framework, which is expected to drive institutional interest and wider adoption.

Quant Network selected Algorand as a key partner for its UK-regulated blockchain infrastructure project. Quant Network, a prominent UK-based fintech company, revealed on 6 June 2024 that Algorand will provide the underlying blockchain infrastructure for part of its Overledger Platform, designed in alignment with UK regulatory standards. This project is part of the UK government-backed Digital Securities Sandbox, enabling institutions to trial tokenised assets on approved blockchains. Algorand’s selection underscores its reputation for compliance, security, and scalability within the stringent UK landscape, and signals potential growth in institutional usage and visibility throughout the British financial sector.

University College London (UCL) announced a new Algorand-powered initiative to support sustainable finance projects. UCL’s Centre for Blockchain Technologies shared on 3 June 2024 that it chose Algorand as the technical backbone for a pioneering research and pilot programme focused on using blockchain for credible ESG (environmental, social, and governance) reporting among UK-based green finance startups. By integrating Algorand’s blockchain, the initiative aims to ensure transparency and integrity in sustainability metrics, a key concern for UK investors and regulators in the context of upcoming sustainability-related disclosure requirements. The project raises Algorand’s profile among UK academic, startup, and regulatory stakeholders.

London-based crypto exchange Archax reported a rise in GBP/ALGO trading volumes after integrating new fiat on-ramps. On 5 June 2024, Archax, a regulated digital asset exchange and custodian in the UK, highlighted a notable increase in trading volumes for GBP/ALGO pairs, attributing this to recently launched fiat on-ramps facilitating direct GBP deposits and withdrawals. This surge reflects improving accessibility for UK-based investors, both retail and institutional, seeking to transact in Algorand without routing through foreign currencies, a feature viewed positively amidst growing demand for compliant crypto–fiat connectivity in the local market.

UK Treasury confirmed progress toward establishing comprehensive, pro-innovation crypto legislation by Q3 2024, benefiting networks like Algorand. During a Treasury Select Committee briefing on 6 June 2024, UK Treasury officials reiterated their commitment to implement new crypto legislation that balances risk mitigation with support for Web3 and blockchain innovation. These developments, including a robust regime for regulated stablecoins and tokenised securities, are expected to unlock further institutional adoption and partnerships for compliant Layer 1 networks such as Algorand, enhancing their attractiveness to regulated DeFi projects and enterprise adoption in the UK.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.