Cryptocurrencies can depreciate for various reasons. One of the main reasons is the mood of the market, which is due to the perception by investors and traders of the future prospects of a particular digital currency.
Negative news, such as regulatory actions or security breaches, can undermine confidence in a particular cryptocurrency and lead to its sell-off.
In addition, 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 the challenges facing the current crypto landscape, one cryptocurrency is proving its resilience and standing out.
Liquidity registers an unexpected gain of 132%
LQTY, the native token of stablecoin lender Liquity, was the only cryptocurrency to shrug off all the negativity by registering a commander 132% rally Tuesday.
At the time of writing, the LQTY has been flashing green for a week to month period, trading at $2.28, data from Coingecko shows.
The rise in price was the highest in LQTY since April last year, and this came after it was listed on Binance’s Innovation Zone crypto exchange.
According to the Binance website, the Innovation Zone is where users can trade new tokens that are expected to be more volatile and risky than other tokens.
LQTY maintains momentum with 183% monthly increase
Last 30 days LQTY increased by 183%. According to CoinMarketCap, its market capitalization has grown to over $260 million. According to the latest data, the total market capitalization of the cryptocurrency is currently $1.058 trillion.
Liquity is a decentralized system for borrowing LUSD and LQTY stablecoins. As collateral, users can receive interest-free loans using Ethereum (ETH).
No one can change existing system rules because the project does not have an admin key. It is fully managed by immutable and self-sustaining smart contract code.
When the New York State Department of Financial Services ordered Paxos to stop issuing its USD-pegged BUSD centralized cryptocurrency earlier this month, the price of the Liquity token jumped 45%.
Liquidity does not offer its own lending platform. Instead, it provides technologies that others can use to develop their own applications.
DeFi Saver and Instaapp are two of the most popular financial solution apps. According to DefiLlama, the total value of Liquity (TVL) locked up is around $600 million.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
Improved Market Forecast for LQTY
Binance, the largest cryptocurrency exchange, has millions of customers worldwide. Thus, the listing of cryptocurrencies on the company’s platform is always significant. This explains why the price of Liquidity rose on Tuesday.
Indeed, any positive momentum for this coin and its primary purpose is likely to be healthy for its price. The increase in the LQTY price today reflects the improved market outlook for this project.
– Featured image from Currency.com
Credit : www.newsbtc.com
