I’m receiving question like this all the time; “can Algorand reach $100?”.
Instead of answering one at a time, I’m going to show you what I think about Algorand, and how likely it is that is reaches $100.
Yes, it is possible for Algorand to reach $100, but it’s not likely. This would put its market capitalization at $280 Billion, which is higher than Ethereum. However, coins like Dogecoin has proven that anything is possible in the cryptocurrency market.
Let’s get into why Algorand might just make it to three figures, and what would happen if it did:
How can Algorand Reach $100?
If you’re into Algorand, you probably know that their technology is superior.
They have solved the blockchain trilemma with their pure proof of stake (PPoS) consensus algorithm, giving them decentralization, scalability and security.
Also, they have a lot of projects being built on their blockchain, which is good for the value of Algorands cryptocurrency ALGO.
In addition, they have tons of partnerships, large key stakeholders and a great leadership team supporting them in their journey.
Read more about this in my other article:
Is Algorand a Good Investment in 2021?
The big question is: Is this enough to push the price of Alogrand all the way up to $100?
No, it’s not. At least not in a few years.
What they need is some additional “hype-worthy” use cases, giving them a lot of new coverage, which would lead to key influencers in the crypto community to talk about them, and speculators to invest in them.
In fact, they have one case that’s “hype-worthy”; Marshall Islands’ Sovereign Digital Currency Will Be Based on Algorand.
In isolation, this is not that exciting, as The Marshall Island only have about 50K people.
However, if this is a success, other countries might follow their example, leading Algorand to become the go-to blockchain for national currencies.
This would, by far, be enough to send Algorand to 100 dollars in no time.
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What Would Happen if Algorand Reached $100?
It the price of Algorand reached $100, what would happen to the market cap?
As you know, Algorand is pretty cheap. This is due to its large circulating supply.
Below you see a chart showing the circulating supply together with Algorands inflation rate.
The blue pillars is the circulating supply, and the orange line is the inflation rate:
Now, to calculate the market capitalization of Algorand at $100, we need to multiply $100 with the number of coins in circulation.
Therefore, it depends on the year it happens.
I made a table showing you the market capitalization depending on the year it takes place:
|ALGO Price||Year||Market Cap|
|$100||2021||$280 000 000 000 (280 Billion)|
|$100||2022||$360 000 000 000 (360 Billion)|
|$100||2023||$440 000 000 000 (440 Billion)|
|$100||2024||$520 000 000 000 (520 Billion)|
|$100||2025||$600 000 000 000 (600 Billion)|
|$100||2026||$680 000 000 000 (680 Billion)|
|$100||2027||$760 000 000 000 (760 Billion)|
|$100||2028||$840 000 000 000 (840 Billion)|
|$100||2029||$920 000 000 000 (920 Billion)|
|$100||2030||$1 000 000 000 000 (One Trillion)|
As you can see, it depends largely on when this happens, due to the high inflation rate of Algorand.
Let’s say it happens this year, and Algorand reaches a market capitalization is $280 Billion.
Just how large is this?
Let’s compare it to some other cryptocurrency market caps:
As you can see, if Algorand reaches $100 this year, and therefore $280 Billion in market cap, is would be larger than Ethereum is right now.
Algorand surpassing Ethereum will probably never happen.
However, Ethereum will probably grow as well, as it’s price is heading to $8000 this year.
This gives other cryptocurrencies more room to grow, enabling the possibility of Algorand reaching $100 in 2021.
Have Similar Surges in Value Happened Before?
Yes, this has happened many times. The one most people know about is Dogecoin, which has surged over 400x in the last 13 months alone.
Check out the insane growth of Dogecoin:
As you can see, since march of 2020 Dogecoin has surged roughly 41 500 percent.
If something like they were to happen to Algorand, it would blast right through, and go way beyond $100.
At the time of writing, the price of Algorand is $1.5.
If it were to surge 41 500 percent this year, the price would reach $622.5.
However, the likelihood of this level of hype striking a coin like ALGO is low, so don’t count on it.
It is definitely possible for Algorand to reach $100, but it’s not likely. If it does, its market cap would be higher than the current market cap of Ethereum.
For Algorand to reach $100, it needs to attract a lot more attention in the media, and influencers in the crypto community need to hype it up significantly like we’ve seen happen with Dogecoin.
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