The native token of Liquity, a decentralized borrowing protocol, LQTY has increased by 80% over the past month, in contrast to the weak performance of the larger cryptocurrency markets.Users can borrow money on Liquity, a platform for borrowing and lending, after pledging ether (ETH) as security. Loans are denominated in Liquity’s U.S. dollar stablecoin, LUSD.
LQTY is currently trading at about $1.35, up from $0.75 a month ago.Over the same time span, bitcoin has grown by 2% in comparison to the bigger crypto assets.Ethereum fell by 3%, while Solana’s SOL rose by 20%.The market value of the LQTY coin is roughly $120 million.The price of these smaller cryptocurrencies fell down 12% on Friday despite no noteworthy news, showing just how volatile they can be.The protocol has reportedly seen a surge in activity over the past month, which the company claims may be influencing the price fluctuation.
A total of about $625,000 has been paid to users who staked in the protocol during the past month.The LQTY staking pool allows users to stake LQTY tokens and generate protocol fees that are paid out in LUSD and ETH.Another element that could have contributed to the price increase, according to a Liquity spokeswoman, is that Bluechip, an independent stablecoin agency, just given it an A rating.