Liquity, a decentralized borrowing protocol, has seen its native token LQTY rally 80% over the past month, bucking the trend of sluggish performance in the broader cryptocurrency market. 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. In comparison, Bitcoin has seen a 2% increase over the same time period, Ethereum has lost 3%, and Solana’s SOL has gained 20%. The LQTY token has a market capitalization of about $120 million. However, it is important to note that smaller cryptocurrencies can be more volatile than larger ones. For example, the price of LQTY 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.
