The price of Ethereum-based altcoin project Loom Network ($LOOM) has seen a rally of over 290% over the last 30 days, partly over a recent listing on a popular cryptocurrency trading platform as its liquidity grows.
According to available data, the price of Loom Network’s native LOOM token was of around $0.038 late last month, and is now trading at $0.155 after a massive 290% in a month, with 125% of its growth coming just over the past week.
The cryptocurrency’s rally comes at a time in which it received a liquidity boost from a recent listing at cryptocurrency exchange Gate.io, which saw over $540 million in spot trading volume over the last 24-hour period, making it a major cryptocurrency trading platform.
In the listing, the exchange described LOOM as a “multichain interoperability platform — live in production — that’s connected to other major blockchains such as Ethereum, BNB Chain, and Tron.” Multichain interoperability essentials means that data and information can be transferred between the blockchains it supports seamlessly.
According to Coinbase, Loom Network is optimized to scale high-performance decentralized applications (DApps) that require a quick and smooth user experience. Additionally, the platform aims to enable DApps to deliver a user experience reminiscent of conventional apps, while seamlessly integrating new users without the obligatory use of cryptocurrency wallet software.
Central to the ecosystem is the LOOM token, which plays a pivotal role in securing its mainnet, dubbed Basechain It allows developers to, for example, pay for hosting their DApps on Basechain, while validators can stake their LOOM to protect the network.
According to on-chain analytics firm Santiment, LOOM’s surge also came as the ratio of tokens on exchanges dropped 20.8% to 14.9% over the last few days.
As the supply of tokens available to be sold on cryptocurrency trading platforms drops, the price of LOOM could keep on rising if demand remains unaltered, as a result of a supply shock.
Featured image via Unsplash.
