Cryptocurrencies can lose value for a variety of reasons. One of the main reasons is market sentiment, which is driven by the perception of investors and traders about the future prospects of a particular digital currency.
Negative news, such as regulatory crackdowns or security breaches, can erode confidence in a particular cryptocurrency and lead to a sell-off.
Additionally, cryptocurrencies are subject to the same economic forces that affect other assets, such as supply and demand, inflation, and geopolitical events.
In the face of challenges besetting the current crypto landscape, one crypto proves its resilience and stands out.
Liquity Registers Unexpected 132% Gain
LQTY, the native token of stablecoin lender Liquity, was the only cryptocurrency that brushed off all the negativity by registering a commanding 132% rally Tuesday.
At the time of writing, LQTY was flashing all green in the weekly up to the monthly timeframe, trading at $2.28, data from Coingecko show.
The price ascent was the highest by LQTY since April last year, and it comes after it was listed on crypto exchange Binance’s Innovation Zone.
According to Binance’s website, the Innovation Zone is a venue where users can trade new tokens that are anticipated to be more volatile and risky than other tokens.
LQTY Sustains Momentum With 183% Monthly Increase
In the last 30 days, LQTY has increased by 183%. Its market cap soared to more than $260 million, data from CoinMarketCap indicate. The overall cryptocurrency market cap now stands at $1.058 trillion, latest data shows.
Liquity is a decentralized system for borrowing LUSD stablecoin and LQTY. As collateral, users can obtain interest-free loans using Ethereum (ETH).
No one can modify the system’s existing rules since the project has no admin key. It is totally governed by its immutable and self-sustaining smart contract code.
As the New York State Department of Financial Services directed Paxos to cease minting its centralized dollar-pegged cryptocurrency BUSD earlier this month, the price of the Liquity token jumped by 45%.
Liquity does not offer its own loan platform. Instead, it delivers the technology that others can utilize to develop their own applications.
DeFi Saver and Instaapp are two of the most popular apps that provide financing solutions. According to DefiLlama, Liquity has a total value locked (TVL) of about $600 million.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
Market’s Improved Outlook For LQTY
Binance, the largest exchange in the cryptocurrency sector, has millions of customers around the globe. Thus, the listing of a cryptocurrency on the company’s platform is always significant. This explains why Liquity’s price rallied on Tuesday.
Indeed, any positive boost for this coin and its fundamental objective is likely to be healthy for its price. The increase for LQTY’s price today represents the market’s improved outlook on this project.
-Featured image from Currency.com