Decentralized borrowing protocol Liquity has made a name for itself with the extraordinary rise it has experienced in recent weeks.
The coin, which experienced an 80% increase in the last few weeks and a 24% increase in a few days, lost some of its gains today.
LQTY Increased by 80% Due to Increased Activity
This remarkable performance was a positive contrast to the relatively stagnant trends observed in cryptocurrency markets.
Operating as a borrowing and lending platform, Liquity allows users to obtain loans in Liquity's stablecoin, LUSD, by using Ethereum (ETH) as collateral.
About a month ago, LQTY was valued at $0.75 and is currently around $1.28.
Although its recent performance has been good, LQTY experienced a 13 percent withdrawal today.
It can be seen that a “Bard Formation” has formed on the 4-hour chart and the price has retreated slightly.
Especially if the $1.23 support is not broken, the coin may continue its rise. However, coins that have risen significantly recently are more likely to experience a sharp decline.
For this reason, it is necessary to be more careful when trading in such coins.
The increase in Liquity's LQTY token value can be partially attributed to the high activity observed on the platform in the past month.
Specifically, users participating in the protocol received payments of approximately $625,000 during this period. Liquity offers a staking pool for LQTY holders, allowing them to stake tokens and earn protocol fees paid in LUSD and ETH.
*This is not investment advice.