January 2026 Algo Insights Report

Welcome to the latest edition of the Algo Insights Report, recapping ecosystem metrics and momentum in January 2026. 

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January highlights

In January, Algorand continued to show steady network strength, with several ecosystem 
metrics signaling meaningful activity growth.

Key highlights:

• Network expansion continued with total wallets increasing 1.4% to 49.56 million, while transactions increased 1.4%, surpassing 3.44 billion overall.

• Monthly active account engagement climbed sharply, with active accounts increasing 62.2% to 896,000 from 552,000 in December, highlighting a strong rise in on-chain participation.

• Development momentum remained strong, with smart contracts deployed up 31.5% to 808,000, highlighting continued builder activity across the ecosystem.

• Although stablecoin market cap eased 11.3% to $52.62 million from December’s peak, on-chain activity strengthened significantly, with stablecoin transaction volume surging 91.6% to $436 million, up from $228 million in December, highlighting robust usage and capital velocity across the network.

   

Decentralization and security update

In January 2026, Algorand continued progress on decentralization and network security, with total ALGO staked reaching 2.0 billion. The community now accounts for 80.4% of the stake, while the Algorand  Foundation’s share declined further to 19.6%.

Algorand tokenomics

At the end of January, ALGO’s circulating supply reached 8.87 billion, representing 88.7% of the total maximum supply. This marks a 0.3% increase from December.

Staking rewards and network fees

In January, Algorand validators earned 6.87 million ALGO in staking rewards. 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

The Foundation announced Algorand’s official move back to the U.S. and a new Board of Directors. Leadership also introduced the new Ecosystem Advisory Council, bringing together key members of the ecosystem to provide feedback and recommendations to the Board.

The ecosystem team hosted a Community Call to share insights into plans for early 2026. 

The Foundation was a main sponsor at CfC St Moritz Jan. 13-17th, gathering leading global decision-makers from finance, tech, and government, and showcasing Algorand through talks and live demos.

The Foundation also published the 2025 Q4 Transparency report, highlighting growth in transaction volume, RWA TVL, stablecoins, Pera wallet creation and user retention, and an increase in community staking.

Governance

xGovs approved three grants in January:

• ASA Stats Permission dApp - 34,000 ALGO

• Folks Smart Contract Library - 200,000 ALGO

• PactFi Consensus Compatible Liquidity Pools - 150,000 ALGO

  Did you know that you can participate in xGov grant discussions even if you are not signed up to vote? Join the Algorand Forum to add your voice to xGov and other governance discussions.

  The xGov platform's front-end repository is now open source. If you are a developer, we encourage you to check it out.

Algorand in the news

• AF CEO Staci Warden appeared on Bloomberg Radio and the Schwab Network to discuss the 2026 crypto outlook, including ​​ETF inflows, stablecoin expansion, and quantum security.

• CoinDesk covered the Foundation’s new board and move back to the U.S.

• Blockster and Cryptonomist covered Brale and Kraken partnership announcements.

• AF CSMO Marc Vanlerberghe was featured in a Decrypt piece on stablecoins.

Around the ecosystem

The roundup below showcases the activity fueling Algorand’s growth and adoption across multiple sectors.

Staking and DeFi news

• Tinyman adjusted its fee structure to enhance long-term sustainability and launched Split Router V3.

• Pact published a blog post to reveal its 2026 game plan.

• Folks Finance launched a new utility for FOLKS token holders who can now benefit from swap fee discounts.

• Haystack added upgrades, including a new Auto Yield feature that automates earnings positions when users buy, sell, send, or receive assets. 

Each week, the Foundation’s Head of DeFi, Fred Estante, recaps everything happening in the ecosystem. Check out his January summaries to discover when apps are running incentives, opportunities for beta testing new apps and feature upgrades, and more:  JAN 4 |  JAN 11  | JAN 18 | JAN 25

Stablecoins, payments, and agentic commerce

• Algorand went live on Allbridge, enabling cross-chain transfers of native stablecoins. Users can now send and receive native USDC between Algorand and 15 other chains, significantly strengthening network interoperability. Watch a demo showing how to quickly bridge USDC from Solana to Algorand on Allbridge.

• Kraken exchange and Krak app announced support for USDC on Algorand for deposits and withdrawals. Users can deposit, withdraw, hold, and spend USDC with fast, low-cost transactions. Kraken will also run an Algorand node, supporting network decentralization and security.

• Brale, a company providing complete infrastructure for enterprises and fintechs to issue regulated stablecoins, announced its Algorand integration. Learn more about the integration on S3:E10 of the Verifiably Random podcast, featuring AF CBO Min Wei and Brale CEO Ben Milne.

• Coinbase officially merged Algorand’s x402 spec.

Impact

• The New York Times highlighted the real-world usage and impact of HesabPay in Afghanistan. (HesabPay is built on Algorand.)

Climate finance

• Global shipping leader MOL and ITOCHU, one of Japan's largest trading conglomerates, partnered to decarbonize transport using EACs, with transactions executed via 123carbon, built on Algorand. 

Wallets

• Pera Wallet launched Pera Fund in partnership with Exodus, allowing users to fund their wallet with ALGO or USDCa using other cryptos like ETH, SOL, and BTC, directly within Pera.

• The Pera team released new Android and iOS updates for Pera Wallet.

• Lute Wallet added experimental Falcon support for PQ accounts.

• The Pera team posted their December 2025 Pera Community Monthly update on YouTube.

Prediction markets

• Alpha Arcade’s January volume saw an exponential jump. Their daily transactions are now third in volume among prediction platforms, behind Polymarket and Kalshi. The AA team also teased the launch of multichain support, CEX listings, NTT, and support for cards.

Gaming

• Rxelms announced its lineup for Q1/Q2 2026.

Developer and builder news

• ASA Metadata Registry standard proposal ARC-89 reached Last Call status.

• Our Kapa.ai support bot on the Developer Portal and in Discord now offers an MCP server that is free for developers to call for Algorand-related work.

• Genfinity published an Algorand 2025 recap covering protocol upgrades, ecosystem growth, and real-world adoption.

• Fifteen AlgoBharat teams participated in THub India’s Demo Day, pitching their ideas to a curated group of VCs and angel investors.

• The Startup Challenge team announced the winners of Algorand’s first challenge.

• TxnLab went live with upgrades to use-wallet v4.4.0.

Algoland

AF went live with the largest VRF draw in Algorand's history (over 79,000 wallets) to select the winners of the Algoland campaign. Due to fraud, some T&C violations, and to avoid rewarding users who are gaming the system, the team planned additional draws for February. 

What's happening in February

• Feb. 4: AlgoBharat Hack Series 3.0 -Delhi Meetup & Info Session.

• Feb. 17-21: AF is attending ETHDenver, and CSMO Marc Vanlerberghe will be speaking on agentic commerce.

• Feb. 21 - Crypto Community Conference III in Łódź, Poland.

• The AF ecosystem team is hosting a Community Call in late February. Follow AF on X for updates. 

Visit our Events page to stay up to date on upcoming conferences, hackathons, speaker events, and community meetups around the world.

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