October 13, 2023 at 11:37 GMTModified date: October 13, 2023 at 11:37 GMT
October 13, 2023 at 11:37 GMT

$LOOM up 24%: What’s behind Loom Network’s sudden rise?

Loom Network’s native token has peaked from $0.19 to $0.29 in less than 12 hours, which is its highest price level of the year.

$LOOM up 24%: What’s behind Loom Network’s sudden rise?

The week has not been great for a majority of the top coins in the cryptocurrency market. However, Loom Network ($LOOM) has been an exception, enjoying bullish sentiments for the past couple of days.

$LOOM traded positively and has been bullish for the most part of the past few weeks. The sentiment became loud on 12 October, when the coin peaked from $0.19 to $0.29 in less than 12 hours. This is the highest price level $LOOM has seen in this year. Its all-time high was etched about five years back when its price touched $0.77.

While at the time of press, the token was down from this level, it continued its trade in the green, up by over 25% in the last 24 hours, changing hands for $0.271. The current rally has brought its total market capitalisation to more than $225million.

While the reason behind this bullish momentum is not exactly clear, the network has been a recipient of a few exchange listings recently which could potentially be a trigger.

Gate.io, which is a centralised crypto exchange established in 2013, listed the token in its platform on 25 September. The exchange is one of the leading ones in the world, with a 24-hour volume at $406m and handles millions of transactions on a daily basis.

Another reason for the ongoing rally could be Binance’s announcement of launching the $LOOM Perpetual Contract with $USDT as the settlement asset. It will have a maximum leverage of up to 10x.

In this same week, KuCoin Futures also launched the $LOOM – $TWT (Trust Wallet Token) $USDT-Margined Perpetual Contracts. Supporting 1-20x leverage, the move offers traders a chance to make more money through leveraged trading.

As observed in the past, such exchange listings tend to have a major short-term impact on cryptocurrencies.

However, it has also been noted that the LOOM token ranks top on the Korean exchange Upbit. Here, traders are known for their pump-and-dump habits as seen in the past. This has further spurred concerns regarding $LOOM’s continued rally.

Live since 2018, Loom Network is a multichain interop platform that is optimised for scaling high-performance decentralised applications (dApps) that require a fast and smooth user experience. It allows dApps to offer a UX comparable to traditional applications and onboard new users without needing to download crypto wallet software.

The network boasts integrations to Bitcoin, Ethereum, Binance Chain, and Tron, giving developers the option to integrate assets from all major chains. Its native token $LOOM is a proof-of-stake token used to secure Loom Network’s mainnet, called Basechain. $LOOM holders can stake their tokens to help secure Basechain and earn rewards in the process.

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