Stablecoin Lender Liquity’s Token Gains 80% in Month as Activity Increases
The LQTY token has almost doubled in price. Factors cited included growth in activity and an A rating from Bluechip.
Updated Oct 13, 2023, 7:22 p.m. Published Oct 13, 2023, 7:22 p.m.
Liquity, a decentralized borrowing protocol, has seen its native token LQTY rally 80% over the last month, contrasting with sluggish performance in the broader cryptocurrency markets.
Liquity is a borrowing and lending platform where users can take out loans denominated in Liquity’s U.S. dollar stablecoin, LUSD, after staking ether (ETH) as collateral.
LQTY was trading at $0.75 a month ago and is now around $1.35. Compared to the larger crypto assets, bitcoin has seen a 2% increase over the same time period. Ethereum lost 3% and Solana’s SOL gained 20%.
The LQTY token has a market capitalization of about $120 million. And in a sign of just how volatile these smaller cryptocurrencies can be, the price was down 12% on Friday on no notable news.
According to the company, the protocol has seen increased activity over the past month, which could be contributing to the price movement.
Users who staked in the protocol were paid a collective of around $625,000 over the past month. Users can use the LQTY staking pool to stake LQTY tokens and earn protocol fees, which are paid out in LUSD and ETH.
A spokesperson for Liquity said that Bluechip, an independent stablecoin agency, recently gave it an A rating, another factor that might have contributed to the price surge.
Lyllah Ledesma
Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds a master's degree from New York University in Business and Economics and an undergraduate degree in Political Science from the University of East Anglia. Lyllah holds bitcoin, ether and small amounts of other crypto assets.
