Stablecoin Lender Liquity (LQTY) Surprises With 132% Rally As Most Cryptos Slide

Christian Encila

2 years ago

3 mins read

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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

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.