ALGO, one of the world’s most popular cryptocurrencies, has experienced a sharp boost lately. The coin is up 6% over the past 24 hours and 21% over the past seven days, according to data from CoinMarketCap. The price increase is tied to something unusual; the forthcoming World Cup football competition.
Algorand, the blockchain ALGO is built on, is the official blockchain partner of the 2022 World Cup. In May 2022, the platform announced a partnership with Federation Internationale de Football Association (FIFA), the organization governing the World Cup competition.
The partnership entailed Algorand becoming the official blockchain platform of FIFA and providing blockchain-based solutions for the governing body. For instance, it led to the development of FIFA+ Collect, FIFA's official marketplace for non-fungible tokens, which allows fans to buy and sell NFT collections commemorating historic soccer moments.
The 2022 World Cup is slated to be held in Qatar from November 20, 2022, to December 18, 2022. It'll see 32 nations, such as the U.S., Saudi Arabia, and the Netherlands, compete with each other with hopes of winning the final prize. The event will infuse a lot of enthusiasm in the soccer world, so it’s no surprise that Algorand is benefitting from it.
For instance, the new tournament is bound to create a lot of memorable highlights that can be sold as NFTs. ALGO is the official token of the FIFA NFT marketplace, so will likely see increasing demand as people scramble to own a digital piece of the tournament.
Additionally, Algorand will be a major sponsor during the World Cup. This means millions of people will hear about the currency for the first time, a significant percentage of which can convert to users. In preparation, Algorand revealed an upgrade in September that it claimed increased the network’s speed by 5x.
It’s possible that ALGO’s price will continue to increase in the days leading up to the World Cup, even as many other cryptocurrencies suffer price slumps. The token currently has a market capitalization of nearly $3 billion.