According to CoinDesk, decentralized borrowing protocol Liquity has seen its native token LQTY rally 80% over the last month, contrasting with the sluggish performance in the broader cryptocurrency markets. Liquity is a borrowing and lending platform where users can take out loans denominated in Liquity’s U.S. dollar stablecoin, LUSD, after staking ether (ETH) as collateral. A month ago, LQTY was trading at $0.75 and is now around $1.35. In comparison, bitcoin has seen a 2% increase over the same time period, while Ethereum lost 3% and Solana’s SOL gained 20%.
The LQTY token has a market capitalization of about $120 million. However, the price was down 12% on Friday with no notable news, highlighting the volatility of smaller cryptocurrencies. The protocol has experienced increased activity over the past month, which could be contributing to the price movement. Users who staked in the protocol were collectively paid around $625,000 over the past month. The LQTY staking pool allows users to stake LQTY tokens and earn protocol fees, which are paid out in LUSD and ETH.
A spokesperson for Liquity mentioned that Bluechip, an independent stablecoin agency, recently gave it an A rating, which might have also contributed to the price surge.
