The Layer 2 platform is showing signs of being parabolic as the Loom price is up by a massive 171% today. The Loom Network token is currently trading at $0.137 and has surpassed the yearly high of $0.12524. Loom supporters pointed out that Loom is currently the #1 trending cryptocurrency on Binance:
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2.5x done in 8 hours!
Now we have binance #1top gainer as well"
Maintaining this uptrend may be easier than market participants initially think. Undoubtedly, spikes of tokens can disappear as quickly as they happen. However, with the effect of Bitcoin trading above $22,000, the 1-day green candle may consolidate even if it does not rise further while the rest of the crypto space turns green.
LOOM is trading 79% lower than its all-time high. On a 3-month basis, the price recovered by 281%. Loom Network was based on gaming, but is increasingly focusing on businesses. Industries where it is most active include the public sector as a blockchain system, healthcare and data management. Behind today's price surge is the expectation that Ethereum Merge will be successful without major issues. Vitalik Buterin, founder of Ethereum, said last week that the transition to proof-of-stake (PoS) will occur between September 12 and 17.
Along with other Layer 2 solutions, Loom will continue to be an added value for developers who want to run their dApps on Ethereum using its security, but performing the tasks requires high throughput on the sidechains. The main chain of the Loom network is called the Basechain, and it uses delegated proof-of-stake (DPoS) to verify transactions, making it extremely efficient.
It is the interoperability of the chain that attracts developers as it makes working on Bitcoin, Ethereum, Binance Smart Chain and Tron relatively easy. The LOOM token has variants BEP20 and ERC20, both of which can be staked. The project has strong venture capital backing from Singapore and early investors include MW Partners, among others. Other venture capital firms interested in the project include RocketFuel (USA) and China-based Nirvana Capital. As with all dPoS blockchains, the network is partially decentralized, with 21 validators being paid and rewarded from a token pool.