What is Loom Network
Loom Network is a cross-chain platform that enables developers to build scalable decentralized applications (dApps) across various blockchain networks, including Bitcoin, Ethereum, Tron and BNB Chain.
The LOOM token is based on a proof-of-stake (PoS) algorithm. It serves as the native token of the Loom Network and provides protocol functionality.
The project was launched in 2017, and in 2021, the token was migrated to a new contract on the #ethereum mainnet.
Why LOOM is growing
Loom Network is a project that offers infrastructure and tools for developers of decentralized applications. The project's functionality allows for seamless integration with blockchains like Bitcoin, Ethereum, Binance Chain and others. However, their Loom token has not gained widespread success despite its interesting functionality.
Several factors have contributed to the growth of LOOM this week:
Speculation
Fundamental changes
Technical events and random occurrences
#binance added perpetual contracts for Loom with 10x leverage on Binance Futures. Trading was launched on October 11, which marked the beginning of a sharp rise in LOOM.
LOOM's trading volume on the Upbit has increased in the LOOM/KRW pair. This trading pair accounts for more than 60% of the trading volume, amounting to $370 million. Such a sudden increase in volume may be related to speculative price manipulation, so the subsequent decline could be equally significant.
There have also been news reports that Atlassian, a global leader in collaborative software, acquired a company called Loom for $975 million. However, this Loom is unrelated to the #loom token and is involved in video messaging development. Nevertheless, this news has sparked even more interest in the token and accelerated its growth.
Conclusion
LOOM has increased by 6 times in a month and continues to grow. There are rumors that the rise of LOOM is linked to the activity of South Korean speculators.
The LOOM token began its ascent on September 18th, and this week its growth significantly accelerated, forming a green vertical on the charts. Thanks to its rapid growth, the token has entered the top 100 cryptocurrencies by market capitalization, surpassing $400 million.
In the past 24 hours, the token has grown by almost 20% and reached a five-year high at $0.35. At the time of publication LOOM/USD is trading at $0.36.
What are your predictions? 🤔