Algorand's revenue in USD in the third quarter fell 23%, marking the lowest level last year.
Algorand [ALGO], a blockchain based on the Proof-of-Stake (PoS) algorithm, recorded a decline in revenue in the third quarter of 2023, according to a new report by Messari.
In a report titled "Algorand Q3 2023 Brief", on-chain data provider Messari found that Algorand's daily revenue in US dollars ended the quarter at its lowest level in the past year, falling 23% compared to the previous quarter.
According to Messari, this revenue drop is due to the continuous decrease in the average daily value of the protocol's native token, ALGO. According to data from CoinMarketCap, the altcoin's value plunged about 20% between July 1 and September 30.
The revenue decline occurred despite growth in new demand for Algorand in the quarter under review. Messari found that between July and September, Algorand "added 1.1 million new addresses in the third quarter, increasing the total number of addresses by 3% compared to the previous quarter."
Furthermore, the PoS network has recorded a growth in the average number of daily transactions by 2.2%. During the third quarter, the network recorded an average daily transaction volume of 713,000 transactions. In the second quarter, this number was 698,000. Messari added:
"The increase in transaction numbers was likely stimulated by the number of transactions conducted by NFT activity on Algorand in the third quarter. This number increased by 321%, from 45,000 to 191,000 transactions."
However, ALGO's steady price decline during the quarter impacted the amount of network fees paid to process transactions on Algorand, leading to a decline in USD-denominated revenue.
As for the decentralized finance (DeFi) sector, Algorand's total value locked (TVL) has decreased by 48%. Messari attributed this to the protocol's decision to shut down Algofi, which the research firm describes as "its largest DeFi protocol ever to have a TVL".
On July 10, Algofi announced its decision to shut down the platform due to “a combination of events.”
At press time, Algorand's TVL had reached $80.31 million, up 35% since the beginning of October, according to data from DefiLlama.
Status of Algorand (ALGO)
ALGO is currently trading at $0.1299, up 15% from last week. The recent price increase has caused ALGO futures open to increase by 14%.
As of October 23, the market has only had positive interest rates, as traders continue to bet on an extended rate hike.
This shows ALGO's positive growth and the market's confidence in its future.
