Algorand has announced a strategic partnership with XBTO to address liquidity issues in the cryptocurrency market.
Liquidity Issues in the Crypto Market
Liquidity is a critical challenge for altcoins, resulting in many fading over time. Despite the notable entry of institutional players, crypto markets remain shallow, especially when excluding leading assets like Bitcoin and Ethereum. This leads to inefficient, volatile, and costly trading, increasing risks for investors.
Collaboration with XBTO
The Algorand Foundation has announced a partnership with XBTO, a leading global institutional crypto asset manager. XBTO will act as a strategic market maker for ALGO on Tier-1 and Tier-2 exchanges, providing traders with improved order books and deeper liquidity. In addition, USDC stablecoin transfers between custodial wallets and exchanges will become more seamless.
Future Prospects for Algorand
Launched in 2019, ALGO gained recognition in 2021 for its partnership with El Salvador. Despite the impacts of bear markets, ALGO holds support above the $0.2426 level. The market maker partnership is expected to be pivotal in supporting growth, with predictions of reaching $0.6 by the end of the current cycle.
The partnership between Algorand and XBTO emphasizes the significance of liquidity in the crypto ecosystem and could have a substantial impact on ALGO's future.
