Golem crypto up 25%: What is behind GLM token’s rise?

Highlights

• Golem Network uses blockchain to enable the sharing of computing powers between two parties
• It claims to provide a platform to developers where they can deploy their work and earn money
• Golem’s GLM token has risen sharply, more than even the top two tokens -- Bitcoin and Ether

There are tens of thousands of cryptoassets in the market. For enthusiasts, it is important to understand the project which any such asset is linked to. The sustainability of the project can be one of the deciding factors for the asset’s price in the long term.

One cryptoasset, Golem, talks about decentralising computation by using the blockchain tech. The asset has gained nearly 25% in the past one day, which is more than the gains registered by Bitcoin or Ether during the same period. Let’s explore.

Golem Network’s decentralised “microservices”

Golem describes itself as a decentralised “supercomputer” in its whitepaper. What it primarily does is that it connects the two parties in a transaction – the requester and the provider. The network claims that the former seeks resources like hardware and software from the latter. Separately, developers can also use Golem to monetise their projects.

Golem Network claims it can decentralise the computing market, which it says is currently dominated by tech giants like Amazon and Microsoft. Golem’s ecosystem uses cryptocurrency to enable transfers between two parties. All this, it says, gives real powers in the hands of users, and not centralised entities.

Also read: ‘Carbon-free’ WAX (WAXP) crypto up 12% even as Bitcoin is losing value

Golem (GLM) crypto

Golem uses a native token to act as a medium of exchange within its ecosystem. It started with Golem Network Token with ticker GNT. GNT then migrated to a new ERC-20-based GLM token.

GLM can be used for transfers between various stakeholders of Golem Network.

GLM crypto price

The market cap of GLM crypto is nearly US$340 million, as of writing. It does not feature in the top 100 assets list of CoinMarketCap. However, the price has jumped by almost 25% in the past 24 hours.

The price gain of GLM crypto is accompanied by a whopping 600% increase in its 24-hour trading volume. As compared to the price of under US$0.2 in mid-May, Golem has now bounced back to over US$0.3. It started this year with a price of over US$0.4.

One of the reasons behind this massive appreciation could be the positive movement in other cryptos. Bitcoin (BTC) has gained of late, with most other assets like Ethereum (ETH) and Shiba Inu (SHIB) rising as well. Golem’s focus on decentralising the computing space might be piquing the interest of enthusiasts.

Data provided by CoinMarketCap.com

Bottom line

The Golem project focuses on the sharing of computing powers between users with the use of blockchain. The providers can be paid in cryptocurrency. There is also a way for developers to deploy and monetise the software they have built. GLM crypto is native to the Golem ecosystem, and it has appreciated lately.

Also read: Decoding Mina crypto: What makes it ‘world’s lightest blockchain’?

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