Loom Network ($LOOM) Sees 290% Rally in Price
The price of the altcoin project Loom Network ($LOOM), which is based on the Ethereum blockchain, has experienced a significant rally of over 290% in the past 30 days. This surge can be attributed in part to its recent listing on a popular cryptocurrency trading platform, which has increased its liquidity.
Last month, the native token of Loom Network, LOOM, was trading at around $0.038. However, it is now trading at $0.155, representing a massive growth of 290% in just one month. The majority of this growth, 125%, occurred within the past week alone.
Liquidity Boost from Gate.io Listing
One factor contributing to the rally is Loom Network’s recent listing on cryptocurrency exchange Gate.io. This listing resulted in over $540 million in spot trading volume within the last 24 hours, solidifying Gate.io as a major cryptocurrency trading platform.
In its listing description, Gate.io describes LOOM as a “multichain interoperability platform” that is live and connected to other major blockchains such as Ethereum, BNB Chain, and Tron. This means that data and information can be seamlessly transferred between these blockchains.
Scalable DApps and the Role of LOOM Token
Loom Network is optimized for high-performance decentralized applications (DApps) that require a quick and smooth user experience. The platform aims to provide a user experience similar to conventional apps, while also integrating new users without the need for cryptocurrency wallet software.
At the core of the ecosystem is the LOOM token, which plays a crucial role in securing Loom Network’s mainnet, called Basechain. Developers can use LOOM to pay for hosting their DApps on Basechain, while validators can stake their LOOM to protect the network.
Supply Shock and Potential Price Increase
An interesting trend observed by on-chain analytics firm Santiment is that the ratio of LOOM tokens on exchanges has dropped by 20.8% to 14.9% in recent days. As the supply of tokens available for sale on trading platforms decreases, the price of LOOM could continue to rise if demand remains constant, creating a supply shock effect.
Featured image via Unsplash.
Hot Take: Loom Network’s Surge Indicates Growing Interest
The significant rally in the price of Loom Network’s native token, LOOM, suggests a growing interest in this Ethereum-based altcoin project. With a recent listing on Gate.io and an increase in liquidity, coupled with its focus on scalable DApps and multichain interoperability, Loom Network is attracting attention from investors and developers alike.
If the trend of decreasing token supply on exchanges continues, there is potential for further price increases due to a supply shock. As Loom Network continues to innovate and expand its ecosystem, it will be interesting to see how it competes in the highly competitive cryptocurrency market.
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