The Algorand blockchain has reached a new milestone. DefiLlama revealed that Algorand has reached an all-time high in its locked aggregate value. This success comes after Algorand's native cryptocurrency ALGO has risen more than 30% in the past 7 days. Algorand outperforms both Bitcoin and Ethereum in these bearish conditions.
Ethereum went through a successful merger that changed the consensus mechanism from PoW to PoS. Algorand, on the other hand, was based on the Proof-of-stake model from the very beginning. Proof-of-stake replaces mining competition in the Proof-of-Work model, thus avoiding energy consumption. After Merge, Ethereum's energy consumption decreased by 99%. However, PoS is much more centralized than PoW.
Algorand outperforms Ethereum in terms of scalability and speed. Ethereum Merge did not increase the capacity of the network. Therefore, it did not increase the throughput or scalability of the blockchain. Ethereum's TPS is currently in the 10-35 range. However, Algorand reached 6000 TPS on the blockchain. Not only does this outperform Ethereum, it also beats Mastercard's 5000 TPS. Algorand can also achieve block formation and transaction precision in 3.7 seconds. In addition, state proofs exist on the blockchain that protect it from quantum attacks.
On the other hand, Cardano founder Charles Hoskinson also said in an interview that Cardano has a better Proof of Stake (PoS) approach than Ethereum. Hoskinson believes that the Ethereum PoS model tends to be “hyper-centralized” and the staking economy is weak. In 2015 it inspired him to build the Cardano ecosystem with a better PoS model, decentralization and economy.
ALGO did an excellent job in the uptrend despite the unfavorable macroeconomic conditions. However, the Federal Reserve will still determine the strength and duration of this rally. All eyes are on next month's US CPI data, which will significantly affect altcoins.