Loom is up by 13% over the past 24 hours and 67% in the past 7 days. Will the trend continue?
Loom Network's token experienced a significant rise this year, reaching a peak of $0.2150, which is approximately 450% higher than its lowest value this year. Consequently, its market capitalization now exceeds $262 million.
Loom Network has made its way among the top 100 cryptocurrencies in terms of market capitalization, has been on the ascent with a notable 13.09% price surge in the past 24 hours. At present, Loom Network is trading at approximately $0.219986.
Crypto Market Overview
Currently, the cumulative cryptocurrency market valuation stands at approximately $1.06T, marking a slight downtrend of -0.62% on the day. This has also been mirrored in the overall trading volume, which has declined by the same percentage.
Bitcoin, often seen as the benchmark for the crypto market, has witnessed a marginal drop of -0.88% over the past 24 hours and is now trading at $26,875. Despite this, Bitcoin's dominance in the crypto space has only slightly waned, reducing by -0.07% and presently accounting for 49.53% of the total cryptocurrency market.
In contrast, Loom Network, among the top 200 cryptocurrencies in terms of market capitalization, has been on the ascent with a notable 13.09% price surge. At present, Loom Network is exchanging hands at approximately $0.219986.
What Is Loom Network?
Loom Network is a multichain interoperability platform that allows developers to build high-performance decentralized applications (dapps). The platform is designed to be scalable and user-friendly, making it a good choice for dapps that need to handle a large number of users and transactions.
Loom Network uses a variety of technologies to achieve its scalability and usability goals, including:
Sidechains: Loom Network uses sidechains to process transactions off-chain, which improves scalability and reduces transaction fees.
Plasma: Loom Network uses Plasma, a layer-two scaling solution, to further improve scalability and reduce transaction fees.
DPoS consensus: Loom Network uses a delegated proof-of-stake (DPoS) consensus algorithm, which is more efficient and scalable than traditional proof-of-work algorithms.
How Does Loom Network Work?
At its core, Loom Network has been fine-tuned for the efficient scaling of blockchain-oriented applications, emphasizing rapid transaction confirmations and seamless usability.
The foundation of this platform draws inspiration from the Plasma network, consisting of:
A Software Development Toolkit (SDK)
A consensus model based on Delegated Proof-of-Stake (DPoS)
Software Development Toolkit (SDK)
Loom Network's SDK is engineered to deliver immediate benefits for dApp creators. This toolkit streamlines the process of blockchain application design.
Moreover, it offers developers the tools to craft a wide array of open-access apps without diving deep into the intricacies of Ethereum blockchain's native development.
Delegated Proof-of-Stake (DPoS)
While Loom Network builds upon the Ethereum framework, it leverages a tweaked proof-of-stake (PoS) consensus named delegated proof-of-stake (DPoS). In the traditional PoS model, participants who stake their tokens are rewarded for transaction verification and bolstering blockchain security. DPoS varies slightly.
Within Loom Network, more than 21 delegated validators exist. The emphasis of DPoS lies in a robust voting and delegation infrastructure.
Users assign their tokens to these validators, allowing them to oversee transactions on the users' behalf.
This representative validator not only acts on behalf of individual users but is also a custodian of the broader community's interest.
The democratic pre-selection of delegates for block validation allows Loom Network to surpass several PoS models in transaction speed, providing developers with a remarkable 1-second transaction closure, a significant improvement from Ethereum's 15 seconds.
What is LOOM Token Used For?
Central to Loom Network's operations is the LOOM token. This cryptocurrency facilitates developers in managing the expenses of hosting their dApps on this protocol.
Additionally, the LOOM token functions for:
Staking: Shielding the network against potential threats, LOOM owners can stake their tokens. The system then rewards them with fresh tokens upon successful transaction verification.
Governance: With its decentralized nature, the Loom Network evolves based on community consensus. LOOM possessors play a pivotal role, casting their votes on network alterations.
Delegation: Token holders have the liberty to elect validators for block creation by staking their LOOM. These chosen representatives prioritize the network's welfare over individual gains.
Should You Invest in LOOM Now?
Historical trends of the Loom Network, combined with the influence of BTC's halving cycles, have prompted some crypto pundits to forecast a yearly minimum for Loom Network's price at roughly $0.104892 in 2024. In a more bullish outlook, they believe the cryptocurrency could soar to highs of about $0.568701 within the coming year.
Coincodex's analysis offers a slightly different perspective, suggesting that by October 16, 2023, Loom Network could appreciate by 35.03%, touching $0.261627. Their technical data indicates a prevailing bullish sentiment. Yet, the Fear & Greed Index, a tool that gauges market sentiment by assessing factors like volatility, volume, and market momentum, is currently indicating a score of 47, which falls within the "Neutral" range.
Given these predictions, it's essential to consider both the potential risks and rewards. It would be prudent for prospective investors to conduct further research, consult with financial experts, and carefully consider their risk appetite before making any investment decisions.
