In a month where many cryptocurrencies are struggling to keep up, Loom Network (LOOM) has made headlines by experiencing an incredible surge of over 700% within 30 days. This rise drove LOOM to $0.5032 on Sunday before retracing a bit to $0.382 at press time. With such a rapid upswing, its total market capitalization has surpassed $465 million, placing it as the 73rd-largest coin by market capitalization.
Loom Network is a blockchain platform enabling developers to create and scale decentralized applications (DApps) on Ethereum. It employs sidechains connected to Ethereum, allowing for faster and more cost-effective transaction processing, making it ideal for DApps like blockchain games and social media platforms.
Key Drivers of Loom Network’s (LOOM) Rally
Several factors have fueled Loom Network’s remarkable climb. First of all, the cryptocurrency received a substantial boost from its recent listing on Gate.io, the current eleventh-largest crypto exchange by trading volume. Gate.io’s announcement on September 25th played a role, as cryptocurrencies often explode when they secure listings on major platforms.
Adding fuel to the fire, Loom Network’s price surged further after Binance and LBANK listed its leveraged tokens. This was a significant move, especially considering Binance’s status as a global crypto industry giant. The increased accessibility apparently led to heightened investor interest and trading activity.
Meanwhile, an interesting twist came about when Atlassian announced its acquisition of Loom, a video messaging app, for a whopping $975 million. While this acquisition boosted Atlassian’s standing in the software world, it had an unexpected impact on LOOM’s price.
Surprising Coincidence with Atlassian Acquisition
Loom Network’s price surge coincided with Atlassian’s acquisition of the unrelated Loom video messaging app company. Despite the name similarity, these two projects are entirely distinct. Loom Network is a cross-chain platform enabling the development of scalable, decentralized applications across various blockchain networks. Meanwhile, the acquired Loom is a video messaging app.
LOOM experienced a 30% surge, reaching $0.28 in just 24 hours after the announcement, even though it had no connection to the acquired company. The weird coincidence of the names between Loom, the video messaging app, and Loom Network, the blockchain platform, presumably led to this price jump.
