Algorand is quickly emerging as a contender for the smart contract platform space. As crypto moves into a multi-chain world, Algorand is aiming to expand the market with a highly scalable, unforkable blockchain and enticing incentive programs. In this webinar we’ll cover the basics of Algorand and its adoption thus far. We’ll discuss key metrics for Algorand’s usage such as transaction activity, address behavior and much more. Finally, we’ll assess some of the future opportunities that the Algorand ecosystem is looking to provide.

1. Diving Into Algorand - Overview, Key Metrics
& Future Possibilities
October 2021

2. Agenda
● Intro to Algorand
● Key Algorand Metrics
● Ecosystem & Path Ahead

3. A quick update about ITB

4. Protocol Insights for 5 DEXs
● SushiSwap Polygon
● Quickswap
● ShibaSwap
● Dfyn
● HoneySwap
● 16 metrics for traders or LPs

5. Intro to Algorand

6. What is Algorand?
● Smart contract platform
● Founded by Silvio Micali
● Pure proof of stake (PPoS)
● Fast, cheap, scaleable, decentralized

7. The Blockchain Trilemma

8. Pure Proof of Stake
● Algorand’s solution to the “blockchain trilemma”
● Highly decentralized
○ Lowest requirements to host a node
○ 1,311 active nodes
○ Only 1 ALGO to participate in consensus
○ Able to unbond immediately
○ Validators are randomly selected regardless
of their holdings using VRF

9. Pure Proof of Stake
● Scalable
○ Low transaction fees
(~$0.001)
○ Near-instant settlement
○ 1 block transaction finality
(4.4s)
○ 1,100+ transactions per
second

10. Pure Proof of Stake
● Secure
○ Block creators are kept private
○ Validator randomization makes it harder to
collude
○ Validators use a participation key separate
from spending key

11. Other Key Characteristics of Algorand
● “Unforkable”: since finality = 1 block, there can’t be
two chains
● Mitigates MEV
● Algorand Standard Assets (ASA)
○ Fungible [ERC-20]
○ Non-fungible [ERC-721/1155]
● AVM, TEAL & SDKs

12. Key Algorand Metrics

13. Key Metric Categories
● ITB ALGO analytics
○ Network
○ Financial
○ Ownership
● More to come

14. Transactions
● 150,000+ 30-DMA ● 3.5x year over year growth

15. Transaction Volume
● Growing in ALGO and $ terms ● 36x YoY growth ● 30DMA at ATH ($360M)

16. Transaction Demographics
● Equal distribution of transactions ● Signs of a global community

17. Block Time
● Consistently below 5 seconds ● Quickest finality

18. Active Addresses
● 3.5x growth year over year ● Below ATH, anomalies in Aug 2020

19. Active Addresses
● Third highest behind ETH and BTC ● Incentives for address creation

20. Profitability
● 87% of addresses profiting

21. Large Transactions
● Growing institutional interest ● 40x growth year over year

22. Ownership Distribution
● Mostly mid-term holders ● Spikes in traders along with price

23. Long-Term Investors
● 4x growth in hodlers ● Growing in spite of volatility

24. Ecosystem & Path Ahead

25. Algorand Ecosystem
● Early days, growing quickly
● 4.6 million ASA tokens
● Hundreds of applications building on Algorand
● Dozens of University partners

27. Algorand “FutureFi”
● 150 million ALGO (~$260M) DeFi Innovation Fund
● Bridge to and from Ethereum
● Existing applications
○ Tinyman - AMM
○ Yieldly - Staking + Lottery
○ AlgoFi - Lending market

28. Yieldly
Source: DeFi Llama

29. NFTs & Creator Economy
● Easily create NFTs on Algorand
● Cheap, fast, forkless
● Existing galleries:
○ AB2 Gallery
○ Rand Gallery
Source: AB2 Gallery

30. Next Steps for Algorand
● AVM upgrades
● Increasing throughput to 42,000TPS
● Decreasing finality to 0.5s
● Deployment of more dapps

31. Conclusions
● Base infrastructure for dapps
○ Decentralized
○ Scalable
○ Secure
● Algorand is developing a strong ecosystem
● Early days, most yet to come
● Keep an eye out for ITB metrics!

33. Thank You!
Lucas Outumuro
Head of Research at IntoTheBlock
Email: loutumuro@intotheblock.io
Twitter: @LucasOutumuro