Welcome to the latest edition of the Algo Insights Report, recapping ecosystem metrics and momentum in August 2026.
Psst: you can get the Algo Insights report directly to your inbox each month 👉 Sign up.
August highlights
August showed a strong acceleration in network participation and asset creation, alongside a more mixed picture across liquidity and network infrastructure. August also marked the first meaningful measurement period for two emerging areas of network activity: agentic commerce, which launched at the end of July, and quantum-resilient accounts and transactions, which went live on August 20.
Capital, liquidity, and stablecoin activity
- TVL (USD): +4.7% MoM ($64M → $67M)
- TVL (ALGO): -1.7% MoM (804M → 790M ALGO)
- Stablecoin market cap: -2.3% MoM ($44M → $43M)
USD-denominated TVL returned to growth in August, while ALGO-denominated TVL and stablecoin market capitalization declined modestly.
Network usage
- Monthly Active Wallets (MAW): +29.6% MoM (522K → 677K)
- Total wallets: +1.0% MoM (52.02M → 52.55M cumulative)
- Transactions: 32.9M during August (3.672B → 3.705B cumulative)
- Nodes: -2.4% MoM (2,676 → 2,613)
Network participation strengthened materially, led by a nearly 30% increase in monthly active wallets. Algorand added approximately 534,000 new wallets during the month.
Builder activity
- Contracts deployed: -0.6% MoM (606K → 603K)
- New assets created: +40.3% MoM (217K → 305K)
Builder activity remained mixed. Contract deployments were broadly stable, while new asset creation accelerated sharply by more than 40% month over month.
Agentic commerce and x402
August was the first full month of agentic commerce activity following its launch at the end of July.
- August settled volume: $174K
- August transfer count: 615K
- Cumulative settled volume through end-August: $277K
- Cumulative transfer count through end-August: 654K
August activity was characterized by high-frequency, low-value payments. The month represented about 94% of cumulative transfers but 63% of cumulative settled volume, implying an average transfer value of roughly $0.28. This pattern is consistent with the small, frequent payments expected in agent-driven commerce and gives an early indication of how x402 usage is developing on Algorand.
Quantum-resilient features
Algorand's quantum-resilient accounts and transactions went live on August 20. During the initial measurement window through September 7, the network recorded:
- Quantum-resilient accounts: 1,800
- Quantum-resilient transactions: 1.24M
These figures cover only the first 19 days of availability, so they should be viewed as an early adoption signal rather than a full-month benchmark. The relatively high transaction count versus the number of accounts suggests meaningful usage intensity among early adopters.
Decentralization and security update
In August 2026, Algorand continued progress on decentralization and network security, with total ALGO staked steadily at over 2.02 billion. The community accounts for 80.6% of the stake, while Algorand’s share is 19.4%.
Algorand tokenomics
At the end of August, ALGO’s circulating supply reached 9.04 billion, representing 90.4% of the total maximum supply. This marks a 0.76% increase from July.
Staking rewards and network fees
In August, Algorand validators earned 6.74 million ALGO in staking rewards, bringing the total rewards distributed for 2026 to 53.63 million ALGO.
The chart below illustrates the monthly evolution of reward distribution alongside fee generation.
Thank you for reading. Be sure to check out the rest of the newsletter for more updates from
the Foundation and across the ecosystem.
– Simon Bonanno, Head of Analytics
News and updates
From the Foundation
- AC2, the Agentic Communication and Control protocol, was launched to provide the missing security layer for AI agents.
- Sabre participated in an x402 Global Challenge webinar.
- Algorand v5.0.0 was released, introducing native post-quantum accounts, resource-based pricing, and a larger AVM.
- Sara Jane and the team hosted a Reddit AMA about the Global x402 Challenge.
- AlgoBharat surpasses 110 blockchain clubs across India.
- Season 4 of Verifiably Random kicked off with episodes about the consensus upgrade and AC2.
Algorand in the news
- Blockchain.News covered the launch of AC2.
- CSMO Marc Vanlerberghe was on the Milk Road podcast and spoke on a panel about agentic payments during the BlockHouse live broadcast.
- TradeTechEye covered Algorand’s partnership with Flow Traders to deepen institutional liquidity across the Algorand blockchain.
- Algorand’s work with HesabPay was discussed on the All in Crypto podcast.
- Chris Peikert, Chief Scientific Officer, spoke at several conferences: CLAW, Crypto 2026, and Selected Areas in Cryptography.
Around the ecosystem
Staking and DeFi news
- Lofty launched automatic re-lending.
|
AI, agentic commerce
- ZeroSignal launched its Beta.
Stablecoins, RWAs, Payments
- HesabPay launched a virtual Visa card.
Wallets
- Lute Wallet
- Released v1.25.0 with a new password experience.
- Brought native post-quantum accounts in v1.26.0.
- Pera Wallet
- Pera 7.0 launched: a full app rebuild in React Native bringing simultaneous iOS and Android releases, a redesigned home screen, duress mode, 3D NFT support, Sign In With Algorand Support, iPad optimization, and more.
- Rapid improvements: multiple updates throughout the month based on user feedback, covering multisig reliability, animated NFTs, transaction display fixes, smarter NFT sorting and search, and general performance and polish across the board.
- Quantum accounts: Pera now supports FALCON-1024 post-quantum signatures, letting users create or upgrade accounts to be resilient against emerging cryptographic threats. By the end of August, the community had already crossed 500,000 quantum transactions that are tracked live on Pera Explorer's new quantum dashboard. Early adopters can also claim a commemorative 3D NFT based on how many quantum transactions they've sent.
- Txn Lab launched use-wallet v5.
Dev spotlight, tools, and infrastructure
- GoPlausible launched Universal Receipts on mainnet.
- AlgoDevs
- VibeKit alpha launched.
What's happening in September
- Algorand has a new CEO! William Herkelrath joined as CEO on August 31. Learn more in CoinDesk.
- CSMO Marc Vanlerberghe is hosting a webinar about agentic trust. Register here.
- William will be answering questions on a Reddit AMA on September 23. Tune in here.
- The team is speaking at API World, NFT NYC, Conf3rence, and WAD North America.
Stay up to date on upcoming conferences, hackathons, speaker events, and community meetups around the world by visiting our Events page.
Disclaimer: The content provided in this newsletter is for informational purposes only. The information is provided by the Algorand Foundation and while we strive to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the newsletter or the information, products, services, or related graphics contained in the newsletter for any purpose. Any forward-looking statements are subject to change. The content of this newsletter is not intended to be legal, financial, or investment advice nor is it an endorsement, guarantee, or investment recommendation. You should not take any action before conducting your own research or consulting with a qualified professional. Any reliance you place on such information is therefore strictly at your own risk. All companies are independent entities solely responsible for their operations, marketing, and compliance with applicable laws and regulations. In no event will Algorand Foundation nor any affiliates be liable for any loss or damage including without limitation, indirect, or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this newsletter. Through this newsletter, you may be able to link to other websites which are not under the control of the Algorand Foundation. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not imply a recommendation nor endorse the views expressed therein.
The use of agentic commerce involves risks, including potential fraud and identity verification issues. Users and merchants should ensure they are using verified agents and follow best practices for security and compliance.