ALGO price drops as FIFA Collect plans to abandon Algorand for own chain

The price of Algorand’s native token ALGO has fallen sharply following the announcement that FIFA Collect will migrate its official digital collectibles off the Algorand blockchain.

FIFA Collect, the International Federation of Association Football’s digital collectibles platform, revealed plans to launch its own EVM-compatible FIFA Blockchain, marking a significant pivot away from Algorand’s proof-of-stake network.

According to the official announcement, the migration is scheduled to occur no sooner than May 20, giving users time to re-import any previously exported non-fungible tokens (NFTs) for seamless transfer to the new chain.

Reasons for migrating from Algorand

First introduced in 2022 ahead of the World Cup, FIFA Collect originally chose Algorand due to its low transaction fees, quick finality, and green credentials, but now views these advantages as insufficient for future scalability needs.

The platform noted that migrating to an EVM-compatible environment will “support better performance, future features, and improved scalability,” highlighting its ambition to expand the collectible experience beyond current technical constraints.

Changes for users

Users accustomed to Algorand wallets such as Pera and Defly will need to switch to EVM-compatible wallets like MetaMask or Rabby once the migration is complete, signaling a notable shift in the platform’s wallet integration strategy.

This decision introduces potential friction for collectors who have grown comfortable with Algorand’s accessible tooling, but FIFA Collect expects to mitigate disruption through clear user guidance and migration support.

ALGO price reaction

In response to the news, ALGO plunged 5.5% on heavy trading volume, sliding to $0.2196 amid broader market volatility and uncertainty over Algorand’s future utility.

Despite trading near its historical low relative to the 2019 all-time high of $3.56, ALGO has shown resilience over one year, delivering a 26.6% gain, although recent events have capped further upside.

Trading figures reveal a 24-hour volume of approximately $89.6 million, underscoring heightened activity as investors reassess risk exposure in light of the forthcoming NFT platform migration.

Algorand’s market capitalisation now stands at around $1.89 billion, a figure that underscores its status as a mid-tier blockchain but also raises questions about its competitive positioning.

Algorand’s strategic disadvantages, such as limited EVM compatibility before external bridges, have become more pronounced with FIFA Collect’s departure, fueling concerns about developer and ecosystem retention.

In the near term, ALGO’s price trajectory will depend on Algorand Foundation announcements, partnership renewals, and the speed at which competing, EVM-based networks consolidate digital collectible talent.

Analysts caution that while the loss of FIFA Collect is significant, Algorand retains strengths in green consensus mechanisms and low-cost transactions that could attract decentralised finance (DeFi) and tokenisation projects seeking sustainability.

Longer-term revival of ALGO hinges on the protocol’s ability to innovate, broaden its dApp ecosystem, and forge new flagship partnerships that restore market confidence and usage metrics.

ALGO price outlook

The departure of FIFA Collect may intensify scrutiny of Algorand’s long-term roadmap, prompting stakeholders to demand clearer timelines for protocol upgrades and third-party integrations.

Algorand community members have expressed disappointment on social media, lamenting the loss of one of the network’s flagship use cases and urging the foundation to accelerate its own EVM integration roadmap.

The migration underscores how institutional partners can materially influence public blockchain adoption, with high-profile defections potentially triggering network effects that transcend individual project performance.

Market observers point to the broader trend of specialised blockchains emerging to cater precisely to application requirements, challenging generalist platforms that struggle to innovate at comparable speeds.

The post ALGO price drops as FIFA Collect plans to abandon Algorand for own chain appeared first on Invezz