Every bull market is marked by a certain trend that catalyzes and sustains rising asset prices. At the end of 2020, Ether (ETH) led as the Ethereum network saw an increase in activity due to the growing popularity of the decentralized financing (DeFi) sector and the expectation that altcoin would gather by the launch of Ethereum 2.0.
As further signs of institutional money entering the cryptocurrency sector increase, the “grayscale crack” has emerged as the latest trend that may trigger the accumulation of listed assets that are added to the grayscale product family. This is exactly what happened with Livepeer (LPT), a decentralized video streaming network and an associated token built on Ethereo, which was recently included in a new grayscale trust relationship.
Data from Cointelegraph Markets and TradingView shows that the Livepeer price has catapulted more than 1,000% since it was first unveiled as an expression of interest to Grayscale Investments, rising from $ 1.77 on January 21 to a new all-time high of $ 34 on March 20.
Grayscale forms the trust of LPT
The price rally for LPT started on January 21, when it became clear that Livepeer was one of these projects The grayscale created confidence for because the company explored potential product offerings.
March 17, CEO of Grayscale Investments Michael Sonnenshein helped spark another rally for LPT following the release of the following tweet, which announced the official launch of new products, including the Grayscale Livepeer Trust:
NOTICE: 5 new products have been added to the service @ Grayscale sort!
– Michael Sonnenshein (@Sonnenshein) March 17, 2021
The announcement caused another 500% increase in the price of LPT over the next four days and helped bring the token to a new record level.
Network activity shows signs of acceptance
Although the grayscale announcement may have started the LPT rally, Livepeer explorer data shows that network activity has grown significantly since August 2020, as evidenced by the estimated usage and volumes of fees on the platform.
The LPT token offers a number of features in addition to being used to transfer value, including the ability to participate in earning income or vote on governance to help steer the future of the ecosystem.
Community members also have the ability to run a Livepeer node and transcode videos to the network using their GPUs in exchange for ETH and LPT rewards.
As the Internet continues to increase global connectivity and new teleworking becomes the new norm, video streaming will become a central element for both professional and leisure activities. Livepeer is well positioned to offer a functional decentralized solution for streaming and video rendering, which could lead to further appreciation of the LPT price.
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