In today's rapidly developing blockchain field, many investors are full of doubts about the future of various tokens. Especially those tokens called "zombie coins" are often scary. However, the LOOM token is proud of the name "botnet" and has become a BaaS (Blockchain as a Service) platform based on Ethereum sidechain technology. So, is LOOM token reliable? Is its future promising?
Project introduction
Loom Network is a platform designed to provide the infrastructure for Ethereum scaling. As a second-layer expansion solution for Ethereum, Loom Network adopts the DPOS (Delegated Proof of Stake) side chain network, aiming to solve the congestion and expansion problems of the Ethereum network. Its core product, Loom SDK, is a software development kit tool that can help developers focus more on writing application logic and leave the processing of blockchain logic to the SDK.
This design not only improves development efficiency, but also provides developers with greater flexibility, allowing them to quickly build highly scalable games and user-oriented DApps (decentralized applications).
Project features
A distinctive feature of LOOM is its ability to scale based on the second layer of Ethereum. Through the DPOS side chain network, LOOM effectively solves the congestion problem of the Ethereum network and greatly improves transaction processing efficiency. In addition, the launch of LOOM SDK provides strong support for subsequent program development, allowing developers to launch high-quality applications in a shorter time.
TOKEN situation: LOOM tokens were issued in 2018, with a total supply of 1 billion, and currently nearly 80% are in circulation. The token has been listed on 25 exchanges, with a crowdfunding price of $0.076, and the highest price in history has reached 5.49 yuan. However, the current price is only 0.112 yuan, which is nearly 80% lower than the crowdfunding price. The price of the LOOM token has fallen by about 4% since 2020, but trading volume has increased recently, with daily trading volume reaching about 24 million yuan. Based on these data, LOOM's later trend may improve.
In terms of community, LOOM has 10,598 currency holding addresses, and the top 10 holders hold about 80% of the tokens, showing a high concentration of its currency holding distribution. Although there are 1,109 submissions and 16 contributors on GitHub, the number of fans on Twitter and Facebook is only about 20,000 and more than 10,000 respectively, which makes LOOM's community strength appear average.
future outlook
From a technical perspective, the LOOM token does show some promise. It effectively solves the pain points of Ethereum, especially the multiple roles of the LOOM SDK tool in application development, which makes this project have the potential for practical implementation. However, judging from the market trend of the token, LOOM's performance is similar to that of many altcoins, experiencing a process of first creating a hot spot and then rising sharply and then falling sharply. At present, the price of LOOM token has been lower than the initial price by about 80%, and it is in a relatively difficult period.
With the upgrade of Ethereum 2.0, LOOM may usher in new opportunities. Investors can maintain a wait-and-see attitude at this time and continue to pay attention to market dynamics.
Summarize
As a project based on Ethereum side chain technology, LOOM token has its own unique technical advantages, especially in solving the Ethereum network congestion problem. However, the market performance is unsatisfactory and prices fluctuate greatly, which poses considerable challenges to investors. In future development, whether LOOM can rebound depends on changes in the Ethereum ecosystem and the continuous improvement of its own technology. Overall, it is recommended to be cautious when investing in LOOM tokens, with a score of 2.