Algorand may not be the most popular blockchain network but it has quickly been climbing up the ranks. It owes this growth to the rapid development aimed at leveraging the demand for fast and affordable layer-1 solutions.
Its latest development features the rollout of Ethereum native USDC through the newly launched Messina bridge.
The Messina bridge launch is one of the recent developments to grace the Algorand network. It will allow users to safely and efficiently access and bridge native USDC on the Algorand network. The development will eliminate the mint and wrap model, making it easier for cross-network wealth transfer.
Dear #algofam, we are pleased to announce our first launch on #mainnet today! #messina bridge uses a #liquidity model to enable #interoperatibilty between native #USDC on Ethereum and Algorand. See our announcement here: https://t.co/DIXPaJKTG8
— Messina.One (@MessinaOne) October 11, 2022
The native USDC availability on Algorand has the potential to boost the network’s utility. Such an outcome will likely have a positive impact on the demand for Algorand’s native cryptocurrency, ALGO.
Well, the cryptocurrency attempted to exit its lower 2022 range at the end of August and even managed a 50% rally. However, its price has retraced by 32% from its September top to its $0.313 press time price.
Source: TradingView
ALGO’s price action slid further in the last 24 hours at press time. This suggested that the USDC and Messian bridge news was not good enough to influence an ALGO demand shift.
Similarly, the news did not reflect positively on Algorand’s development. The network’s development activity metric has been on an overall decline in the last four weeks.
It simply indicates that development activities have been fewer in the past month. However, the metric did register a bit of an uptick within the last 24 hours at press time.
Source: Santiment
Many investors view healthy development activity to guide their investment decisions. Unfortunately, Algorand’s low development activity in the last four weeks does not necessarily inspire confidence.
However, the development activity metric’s slight mid-week uptick might still inspire a sentiment shift toward the weekend.
Speaking of a sentiment shift, Algorand’s weighted sentiment metric also registered a slight uptick since 8 September.
Source: Santiment
What to expect moving forward
Notably, Algorand’s market cap grew by more than $41 million between 11-12 October. This was before the bears resumed their assault within the last 24 hours.
It confirms that there was some buying pressure that may have been associated with the new Messina bridge.
Source: Santiment
Overall, the altcoin’s current price action is heavily influenced by macro events. Prevailing crypto market FUD and sell pressure may have drowned out bullish attempts.
This article first appeared on AMBCrypto
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