The cryptocurrency market looks like a blood bath every once in a while however a few digital currencies manage to weather their bearishness and even register significant gains. Today is one of those days and Algorand seems to have found favor with the bulls amid the prevailing bearishness.

ALGO, the native cryptocurrency on the Algorand blockchain is currently trading at $1.79 after rallying by an impressive 31.13% in the last 24 hours while its weekly gains have extended to 52%. It is currently the second-best performing cryptocurrency in the top 50 list and its massive bull run in the last 24 hours seems to be inversely related to the recent pullback in the price of Bitcoin and most of the altcoins.

Source: Binance

ALGO’s recent price pump was so massive that it pushed it near its all-time high of $1.84. the price action reflects a spike in buying volume for the token but a pullback might be imminent now that the price is overbought according to the RSI.

Why is Algorand rallying while the market is bearish?

ALGO owes its current rally to the fact that Algorand was selected as the blockchain on which El Salvador’s blockchain infrastructure will be developed. Koibanx, a top financial infrastructure, and asset tokenization company from South America announced towards the end of August that it signed a cooperation agreement with El Salvador’s government to develop the blockchain infrastructure that will support the country’s crypto adoption endeavors.

The announcement also revealed that the infrastructure which includes smart contract financing platforms, credit issuance, and point-of-sale systems, as well as an on-chain certification program will be built on the Algorand blockchain. Koibanx selected Algorand because of its robust functionality, security, and scalability.

Algorand is a smart-contract blockchain that has a transaction capacity of 1,000 transactions per second, and it also happens to be one of the most affordable blockchain networks with transactions averaging as low as $0.001. These features make it highly appealing to companies or even governments looking to roll out large-scale blockchain-based operations and it is thus no surprise that Algorand was selected as the ideal blockchain for El Salvador.

Algorand tokenomics and what to expect moving forward

Algorand currently has a $6 billion market cap with 3.5 billion ALGO tokens in circulating supply, and a maximum supply of 10 billion tokens. The number of tokens in circulating supply is not the most favorable given that it is in the billions. However, the market cap figure might deliver growth and favor ALGO’s price action in the future now that the Algorand blockchain is enjoying more visibility.

Algorand’s current position as the blockchain network supporting El Salvador sets it up for solid growth in the future. The ALGO token will benefit from the value that its blockchain will offer in terms of transactions for an entire nation and this is just the beginning. Algorand might become the go-to blockchain for other countries that are planning to adopt cryptocurrencies as legal tender or even those looking to launch stablecoins.

Algorand may have hit the jackpot with the El Salvador deal but that is just the beginning as far as what is possible for the network in the future.