In the fast-paced world of cryptocurrencies, few projects have managed to capture the attention of traders and investors like Loom Network (LOOM) has in recent days. The Ethereum-based altcoin kicked off the month of September trading at just $0.038 per token.
However, in a mere 25 days, it has experienced a meteoric rise, reaching an impressive high of $0.13. This represents an astounding 242% increase in value. But what is driving the Loom Network price surge, and is it sustainable?
Strong fundamental backing
At the heart of LOOM’s rally lies a robust foundation. It is a multi-chain interoperability platform designed to revolutionize the world of decentralized applications (DApps). Unlike many other tokens that rely solely on market sentiment, LOOM’s value is deeply intertwined with its utility.
The utility of LOOM extends far beyond speculative trading. It serves as the backbone for securing Loom Network’s mainnet, Basechain.
Developers also leverage LOOM tokens to pay for hosting their DApps on Basechain, creating a symbiotic relationship between the token and the platform. Validators and delegators play their part by staking LOOM tokens, fortifying the network’s security.
Loom Network (LOOM) token listing on Gate.io
Another pivotal moment in LOOM’s recent surge was its listing on Gate.io, a prominent global crypto exchange.
Exchange listings provide increased liquidity and accessibility, making it easier for traders and investors to engage with the asset. Gate.io’s decision to list Loom Network (LOOM) undoubtedly contributed to the coin’s heightened visibility.
Notably, LOOM’s price reached levels not seen since December 2021, briefly surpassing $0.126 before experiencing a minor correction. On September 26, Santiment highlighted a decrease in the ratio of LOOM on exchanges, indicating the possibility of an extended rally.
However, while the surge of Loom Network’s native token, LOOM, seems not to be merely a speculative pump-and-dump scenario, caution is advised with any cryptocurrency investment, given the inherent volatility of the market.
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