Data: More than 98% of Algorand’s addresses are in a loss state

According to reports, according to data from the encryption analysis platform IntoTheBlock, the Layer 1 Proof of Rights Protocol Algorand (ALGO) currently has more than 16.4 million addresses in a loss state, accounting for more than 98% of the total registered addresses on the Algorand chain, and its performance also lags behind peers such as Ethereum, Cardano, Solana, and Avalanche. （u.today）

Interpretation of this information:

The message indicates that Algorand, a Layer 1 Proof of Rights Protocol, has a high number of addresses in a loss state, which amounts to over 98% of the registered addresses on its chain. This poor performance deviates from its peers such as Ethereum, Cardano, Solana, and Avalanche. The information was derived from the encryption analysis platform IntoTheBlock, which has highlighted the current state of ALGO based on their data.

To comprehend the meaning of this message, it is essential first to understand the term “loss state.” In blockchain technology, a loss state occurs when tokens or coins are inaccessible, enabling individuals to lose their investments. A variety of reasons may cause a loss state, including forgotten passwords or private keys, computer crashes or viruses, or third-party custody providers’ insolvency. A high number of addresses in a loss state signifies inefficiencies in the project’s usability, security, and trustworthiness, which ultimately results in a negative perception of the protocol.

The report highlights that Algorand’s loss state percentage is significantly high, indicating that the protocol has significant usability and security issues. Its performance is also lagging behind its peers, which indicates less demand and trading volume, a less active community, and less interest from developers. The peers mentioned in the report – Ethereum, Cardano, Solana, and Avalanche – are well-established blockchain projects that have already achieved significant recognition and adoption in the crypto community.

In conclusion, the message suggests that Algorand’s poor performance is a result of its high percentage of addresses in a loss state, which may have negatively impacted its usability, security, and trustworthiness. Furthermore, inadequacies in project effectiveness will lead to losing its user base, trust, and confidence in the project. Therefore, the Algorand protocol needs to work on solutions to improve usability, increase security, and establish trust to start operating at the same level as its peers.