The Algo Insights Report: January 2025

Welcome to the second edition of The Algo Insights Report for 2025. This report recaps what happened at the Foundation, on the blockchain, and around the ecosystem in January.  

January was a transformative month for decentralization and security on Algorand, driven by the successful launch of Staking Rewards, part of the Algorand 4.0 protocol upgrade. The network experienced never-before-seen growth in consensus participation, with the number of mainnet nodes increasing by 179% compared to December.

Asset creation on Algorand has continued its upward trajectory since October 2024. January saw a 52% increase in new assets over December. This growth was partly influenced by TravelX's ongoing expansion in issuing NFT-based travel tickets.

The network's TVL (USD) recovered, returning to early December levels by January 19th.

Finally, Algorand's social media presence continued its strong trajectory from Q4 2024, with impressive growth on YouTube, where subscribers more than doubled. 

Monthly Active Users refer to any wallet which sent at least 1 txn in the month. 
Data Sources: Nodely DW, Defillama

Number of live nodes on Algorand

Monthly ASAs created

Algorand TVL (USD) Dec ‘24 - Jan ‘25

What happened in January: Algorand experienced unprecedented growth in network participation, with the total number of mainnet nodes jumping from 1,398 at the end of December to 3,894 by January 31–an increase of 179%. This surge, of course, coincided with the launch of Staking Rewards, which also ushered in Algorand 4.0 and a new era for network decentralization and security.

What is causing this: The ease of setting up and running nodes on the network, paired with new staking rewards, naturally drove an increase in nodes.  

• • • Staking Rewards launch: For the first time ever, Algorand introduced rewards for node operators and stakers who help secure the network. Incentivizing participation in this way drove the increase in nodes on the network.
    • Accessible participation: Compared to other blockchain networks, running a consensus node on Algorand is extremely accessible. The requirements are relatively low for both hardware and technical know-how, plus there are no slashing risks or lockup periods.

The bigger picture: This substantial increase in nodes is a significant milestone in Algorand's journey toward greater decentralization. As more users stake and run nodes, the network becomes increasingly resilient and decentralized, supporting Algorand's vision of a secure and accessible blockchain infrastructure.

News and updates

From the Foundation

• Members of the Algorand Foundation attended and spoke at CfC St. Moritz.
• The Decentralized Recovery Alliance (DeRec Alliance), of which Algorand Foundation is a member,  celebrated its one-year anniversary. 
• CoinGecko and Coinmarketcap recognized Algorand as American-made. Both CoinGecko and Coinmarketcap also added Algorand to their real-world asset categories.
• ALGO Radio broadcast Episode 3, hosted by Fred Estante, to discuss Staking Rewards with ecosystem partners.
• The Verifiably Random podcast aired Episode #5, discussing the Staking Rewards launch and how NodeKit simplifies node running.  
• The Algorand Blockchain Academy hosted its opening session with the UNDP. The UNDP also held an event on emerging technologies and impact entrepreneurship with Algorand and other blockchains. 

• The tech team launched NodeKit, a tool that helps users install, manage, and monitor nodes for Staking Rewards. Access NodeKit here.
• The AlgoDevs launched a new Developer Newsletter called Review Requested. Subscribe here.

 Ecosystem roundup

• Seven platforms – Folks Finance, TinyMan, Messina, PactFi, CompX, Réti Pools, and Valar -  launched ways to participate in Staking Rewards. 
• Kiln Finance announced Algorand staking support, providing an enterprise solution to custodians, treasury managers, exchanges, and wallets.
• Conio partnered with Italian energy giant Enel to launch a solar panel tokenization product on Algorand. 
• The New York Stock Exchange (NYSE) listed Exodus Movement Inc.’s stock, which is also tokenized on the Algorand blockchain.
• Lavazza Coffee recorded over 26 tons of coffee on the Algorand blockchain in the first weeks of 2025, costing just $0.005 in fees.
• Nodely launched AVAIL, the Algorand Validator Adaptive Infrastructure Layer, for flat fee staking.
• Asalytic launched a ‘composable marketplace’ for NFTs on Algorand.

Algorand in the news

• CTO John Woods discussed the DeRec Alliance's critical role in securing our digital world against quantum threats on Generation Infinity.
• Altcoin Daily released a video exploring staking on Algorand in 2025. 
• DappRadar hosted X Space featuring Woods and CMO Marc Vanlerberghe.
• Woods also joined xx.network and guests to discuss quantum threats.

 Upcoming in January

• Feb. 12: Algorand developer meetup in Delhi. Sign up here. 
• Feb. 14: Global Head of BD and Capital Markets Eric Wragge will speak at RWA Paris Summit.
• Feb. 26: Women's Breakfast Club at EthDenver. Sign up here.
• Feb. 27: Algorand hosts the AlgoRanch side event at EthDenver. Sign up here.

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