The number of Algorand mainnet nodes grew 250% in four months. Will ALGO price recover after falling 70% from ALGO Q4 2024 peaks?
Algorand is one of the most decentralized proof-of-stake platforms, competing with Cardano and Ethereum. It is also a stable network, and on this blockchain, hundreds of dApps run, powering solutions that resolve real-world problems, just like you would find on Ethereum, Solana, and other popular smart contract networks.
These factors remain critical as networks compete for speed, security, and reliability. On this front, new data shows that the number of mainnet nodes on Algorand is up 250% in four months since November 2024.
Algorand Mainnet Nodes Rise 250% In 4 Months
Algorand employs a pure proof-of-stake consensus and requires mainnet node operators, called validators, to validate transactions in exchange for ALGO block rewards and transaction fees. The more node operators there are, the more secure the network is, the more reliable and secure it becomes.
Since November 2024, the number of mainnet nodes has increased by almost 250% due to Staking Rewards on Algorand.
The Foundation has reduced its stake by 306M ALGO in this time period, further decentralizing the network. pic.twitter.com/33b9Rt7ZF1
— Algorand Foundation (@AlgoFoundation) March 10, 2025
As of press time on March 12, 2025, there were over 5,200 mainnet nodes and 2,090 validator nodes. Mainnet nodes on Algorand are responsible for processing blocks and ensuring consensus. Meanwhile, validator nodes ensure the network remains secure by proposing and voting on blocks to validate transactions. In Algorand, any mainnet node can be selected to validate a block of transactions, regardless of their stake size.
The rising number of mainnet nodes follows changes in staking requirements. In November 2024, the Algorand Foundation, which promotes the Algorand network, reduced its staking weight by 306 million ALGO.
This resulted in a shift of control to the community, with more staking now being spearheaded by ordinary ALGO holders rather than the Foundation. The decision was made to make the network even more decentralized, ensuring that no single entity, including the Foundation, dominates.
Release of Algorand v 4.0.1
Further changes, including the release of version 4.0.1 in mid-January 2025, will boost the number of nodes, making the platform even more decentralized.
The release also introduced “heartbeat functionality” to boost network reliability by encouraging reliable, incentive-eligible nodes to remain online. Through this, Algorand developers want to ensure the platform remains stable, reducing instances of downtime and helping stabilize the network.
The parallel analysis also shows that operating Algorand nodes is more cost-efficient. Observers note that Algorand has “cleared” competitors like Ethereum and Base, mostly regarding transaction costs. Gas fees in Algorand appear stable, even during periods of high activity.
Since November 2024, the number of mainnet nodes has increased by almost 250% due to Staking Rewards on Algorand.
The Foundation has reduced its stake by 306M ALGO in this time period, further decentralizing the network. pic.twitter.com/33b9Rt7ZF1
— Algorand Foundation (@AlgoFoundation) March 10, 2025
Meanwhile, transacting on Solana and Ethereum during congestion is expensive. In January, when traders were actively swapping some of the best Solana meme coins, priority fees spiked, damaging user experience. For this reason, Algorand is an attractive option for developers and users relative to most smart contract platforms.
Time For ALGO To Shine?
As Algorand seeks to decentralize, it remains to be seen whether ALGO, one of the top altcoins likely to explode in 2025, will break higher.
Bulls have struggled to sustain momentum after rallying to as high as $0.61 in early December 2024. The coin is down roughly 70% from Q4 2024 highs, finding support at around $0.17.
(ALGOUSDT)
Although the uptrend remains, and ALGO is within a bullish breakout formation set in Q4 2024, buyers need to press harder for the uptrend to continue.
A close above $0.31 might fuel demand, lifting the coin to $0.61 in a welcome buy trend continuation formation.
Even so, risks exist. As bullish as this outlook may be, if prices drop below $0.15 as the crypto market cools off, ALGO might peel back the gains of November and December 2024. In that case, the coin may sell off sharply to $0.10.
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Key Takeaways
- Algorand mainnet nodes surged 250% in four months
- Algorand is more cost-efficient than competitors, developers released version 4.0.1
- ALGO is down 70% from Q4 2024, will prices break above $0.30?
The post Algorand Nodes Up 250% In 4 Months: Time For ALGO To Shine? appeared first on 99Bitcoins.