Over the past month, the price of LQTY, the native token of decentralized lending protocol Liquity, has seen a staggering 80% increase, highlighting strong performance amid negative sentiment in the overall cryptocurrency market. The price surge has been attributed to the market’s growing interest in the Liquity protocol.

In the period of Bitcoin and altcoin downturn, LQTY price is on the rise

Liquity is a lending-based platform that allows users to borrow a stablecoin called LUSD, which is pegged 1:1 to the US dollar, using Ethereum (ETH) as collateral.

The protocol’s native token, LQTY, was trading at $0.75 a month ago and is currently hovering around $1.35. LQTY’s performance becomes even more notable when compared to larger altcoins by market cap. Meanwhile, Bitcoin (BTC) has gained 2%, Ethereum (ETH) has lost 3%, and Solana (SOL) has gained 20%.

As expected, as LQTY’s price has risen, its market cap currently stands at around $120 million. However, over the past 24 hours, despite the absence of any concrete news or developments, the altcoin’s price has dropped by more than 10%, highlighting the high volatility of small-cap altcoins.

The protocol’s network activity is recognized with A-level rewards

Representatives from Liquity highlighted the fact that activity on the protocol has increased significantly over the past month, citing this as a key factor in its price increase.

In the past month, users who used LQTY in the staking pool have earned a total of approximately $625,000. Users can earn protocol fees paid in LUSD and ETH by staking LQTY into the pool.

The spokesperson also mentioned that independent stablecoin agency Bluechip recently rated the protocol an A, which may have further boosted the price.