Following the announcement by Grayscale Investments that it is going to be providing a belief that invests in Livepeer’s LPT, the token surged from simply over $6 on March 17, 2021, to an all-time excessive (ATH) of $32.35 on March 21.
LPT’s 4 Day Surge
The token’s four-day rally briefly noticed its market capitalization rising to over $630 million up from just below $120 million. Nevertheless, on the time of writing, LPT had retreated to $21 and the token’s market capitalization had equally dropped to roughly $400 million.
Along with the LPT belief, Grayscale Investments had revealed the creation of Fundamental Consideration (BAT), Decentraland (MANA), Chainlink, and Filecoin trusts. But solely LPT seems to have responded extra favorably to the announcement than the remainder. As an example, MANA, which traded at $0.79 on the day of the announcement, briefly rose to simply over $1. Nevertheless, on the time of writing, MANA had retreated to $0.93.
Equally, BAT, which began March 17 buying and selling at roughly $0.96, went on to peak at $1.36. Nevertheless, since then the token’s worth has been dropping and on the time of writing, BAT traded at $1.07. However, each Filecoin and Chainlink made small good points after the Grayscale announcement. Nevertheless, some 24 hours later, a lot of the good points had been reversed.
In the meantime, Bitcoin.com Information requested Josh Frank, CEO at crypto information agency The Tie, for his ideas on why LPT had seemingly outperformed the opposite 4 altcoins. Based on Frank, LPT’s shocking run could also be tied to the token’s low liquidity. Frank defined:
Livepeer moved essentially the most as a result of it’s the smallest asset by market cap with the least liquidity. LPT has little or no buying and selling quantity and isn’t listed on any main cryptocurrency exchanges. Buyers reacting to the Grayscale information moved the worth considerably greater than the opposite belongings as a result of low liquidity.
Additionally, from the 5 altcoins that Grayscale Funding has chosen, solely LPT has a market capitalization that’s decrease than $1 billion.
Do you agree that LPT’s low liquidity is the rationale why the token spiked? Inform us what you assume within the feedback part beneath.
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