Why Loom Price Soars 170% Higher Today – Can This Crypto Sustain Rally?

Loom price is up a whopping 171% today as the Layer 2 platform threatens to go parabolic.

The Loom Network token is currently priced at $0.137 and has taken out the year’s previous high of $0.12524.

Loom supporters have been quick to point out that currently the most popular coin on the top exchange is Binance:

Sustaining the rally may be easier than market participants might think at first glance.

Admittedly, similar flash rallies of tokens can sometimes disappear as quickly as they materialize. But with the rest of the crypto universe going green, helped by bitcoin trading above $22k, the green 1-day candle could consolidate, if not climb even higher.

LOOM is trading 79% below its all-time high. On a 3-month view, the price has returned 281%.

Loom Network had its roots in gaming, but has increasingly focused on business.

Among the sectors it has been most active in securing business are the public sector, healthcare and data management, with its blockchain-as-a-system.

What is behind the LOOM price pump?

Underlying today’s price start is the expectation that the Ethereum merger will be successfully completed without major problems.

Last week Vitalik Buterin, the founder of Ethereum, said that the transition to proof of stake (PoS) was on track to be completed between September 12 and 17

Loom, along with other Layer 2 solutions, will continue to add value to developers who want to run dApps on Ethereum using its security, but pushing tasks requires high throughput to sidechains.

The Loom network’s main chain is called the Basechain and it uses Delegated Proof-of-Stake (DPoS) for transaction verification, making it super efficient.

Loom’s multichain is attractive to developers

But it’s the interoperability of the chain that particularly appeals to devs, as it makes it relatively easy to work across Bitcoin, Ethereum, Binance Smart Chain and Tron.

The LOOM token comes in BEP20 and ERC20 flavors, both of which can be staked.

The project has strong venture capital backing coming out of Singapore and includes MW Partners among early investors.

Other VCs that have taken an interest include RocketFuel (US) and China-based Nirvana Capital.

The network is relatively centralized, like all dPoS blockchains, with around 21 validators and rewards are paid out from a pre-defined token pool.

Ethereum Merge will lift all boats – a fillip for Layer 2 Solutions

Although the Ethereum merger moves the network to PoS, its benefits in terms of transaction throughput and lower fees will not be seen until next year when sharding is introduced.

Also, even after sharding comes, there will still be room for Layer 2 because there will always be a demand for more bandwidth as improvements are fully utilized by developers, which in turn leads to dApps needing even more throughput capacity.

Loom is well positioned to be one of the Etheruem Merge winners as the upgrades to the premier smart contract platform spur the development of sidechains and other Later 2 solutions and interoperability.

If you’re looking for other coins bubbling under that ready-to-explode look, Tamadoge is one on our radar.

The ERC20 Tamadoge token provides access to a P2E gaming ecosystem that connects to the metaverse – it can be purchased in pre-sale now, but sells out quickly.