Loom’s price is up 171% today as the Layer 2 platform threatens to go parabolic.
At Loom Network Token it is currently at $0.137 and the high of last year was $0.12524.
Supporters of Loom have been quick to point out that it is now the most popular coin on the Binance exchange:
Supporting a rally can be easier than first-time market participants think.
Similar lightning rallies in tokens can sometimes disappear as quickly as they occur. But with the rest of the crypto world turning green, helped by bitcoin trading above $22k, the green 1-day candle could consolidate, if not climb higher.
LOOM is trading 79% below its all-time high. In the view of 3 months the price has returned 281%.
Loom Network has its roots in gaming but is increasingly focused on enterprise.
Among the sectors most active in securing business are the public sector, healthcare and data management, with blockchain-as-a-system.
What’s behind the LOOM price pump?
Above the take-off price today is the expectation of Merged Ethereum successfully completed without any major problems.
Last week Vitalik Buterin, the founder of Ethereum, said that the transition to proof of stake (PoS) is on track to be completed between September 12 and 17.
Loom, along with others Layer 2 solution will continue to be an added value for developers who want to run dApps on Ethereum using security but demanding tasks that require high throughput on sidechains.
The main chain of the Loom network is called Basechain and uses delegated Proof-of-Stake (DPoS) to verify transactions, which makes it super efficient.
Multichain Loom is attractive to devs
But it is the interoperability of the chain that mainly attracts devs, because it makes it easy to work on Bitcoin, Ethereum, Binance Smart Chain and Tron.
LOOM tokens are available in BEP20 and ERC20 flavors, both of which can be purchased.
This project has strong venture capital support that comes out of Singapore and includes Mitra MW among early investors.
Other VCs that have shown interest include RocketFuel (US) and China-based Nirvana Capital.
The network is relatively centralized, like everything else dPoS blockwith around 21 validators and rewards that are paid out of the token pool already printed.
Ethereum merger will lift all boats – fillip for Layer 2 Solutions
Although in Ethereum Combined with moving the network to PoS, these benefits won’t be seen in terms of transaction throughput and lower costs until next year when sharding is introduced.
Besides, even after sharding Arriving, there will still be room for Layer 2 because there will be more bandwidth demands as the improvements are fully exploited by devs, which in turn leads to dApps that require more throughput capacity.
Loom is well placed to be one of the winners of the Etheruem Merge as it upgrades the best smart contract platform for sidechain development and other 2 solutions and interoperability.
If you are looking for another coin that appears below that looks ready to explode, Tamadoge it’s one on our radar.
Tamadoge’s ERC20 token provides access to a P2E gaming ecosystem that will be embedded in the metaverse – currently available for presale, but selling out fast.