Even as it’s up over 400% the past year with a spot in the top 20 cryptocurrencies according to market cap, Algorand can still boost its profile further with strategic partnerships.
The Algorand Foundation has already made strides in that direction by launching the Algorand Virtual Machine (AVM). This gives decentralized applications developers more runway in order to expand their blockchain ecosystem.
It doesn’t stop there. This year, Algorand also launched a decentralized finance (DeFi) fund, dubbed the Viridis Fund, to the tune of $300 million to help develop DeFi protocols and expand its infrastructure.
All these developments point to a net positive — building strategic partnerships in order to build more awareness in the ecosystem. Subsequently, this will also expose more investors to its native token and garner even more interest, not to mention more market cap growth.
“By building a robust DeFi ecosystem through partnerships, institutional interest in the platform has seen a decent spike,” reports AMB Crypto.
Algorand also recently formed a partnership with Hivemind Capital Partners. The firm was founded by former Citi exec Matt Zhang who believes that blockchain technology is still in its early stages of development.
“More recently, Hivemind Capital Partners founded by Matt Zhang announced its inaugural $1.5 billion venture fund to invest in blockchain and digital asset ecosystems,” AMB Crypto adds. “In fact, Hivemind selected Algorand as a strategic partner to provide technology and network ecosystem infrastructure.”
Trust This Algorand Fund
Interested investors who like the prospects of Algorand certainly have options beyond simply investing in the digital currency directly. One way is via a fund like the Valkyrie Algorand Trust.
One of the highlights of the fund is the dual benefit of price increases in the token itself as well as income. The latter benefit can certainly speak loudly to fixed income investors who are looking for an alternate option outside of bonds.
“Professionally managed by seasoned asset managers, the trust invests exclusively in Algorand’s native currency, ALGO, and aims to offer investors cost-efficient, secure and effective access,” the fund provider’s website says. “VALGO aims to provide an annualized 4-6% yield in addition to the total return of ALGO and is IRA eligible from certain providers.”
With a year-to-date gain of almost 500%, Algorand is certainly one to watch in the vast cryptocurrency pool. However, risk-averse investors may want to give the Valkyrie fund a closer look if they want to avoid the volatility of investing in Algorand directly via an exchange.
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