Stablecoin Lender Liquity’s Token Gains 80% in Month as Activity Increases

The LQTY token has almost doubled in price. Factors cited included growth in activity and an A rating from Bluechip.

AccessTimeIconOct 13, 2023 at 7:22 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Liquity, a decentralized borrowing protocol, has seen its native token LQTY rally 80% over the last month, contrasting with sluggish performance in the broader cryptocurrency markets.

Liquity is a borrowing and lending platform where users can take out loans denominated in Liquity’s U.S. dollar stablecoin, LUSD, after staking ether (ETH) as collateral.

LQTY was trading at $0.75 a month ago and is now around $1.35. Compared to the larger crypto assets, bitcoin has seen a 2% increase over the same time period. Ethereum lost 3% and Solana’s SOL gained 20%.

The LQTY token has a market capitalization of about $120 million. And in a sign of just how volatile these smaller cryptocurrencies can be, the price was down 12% on Friday on no notable news.

According to the company, the protocol has seen increased activity over the past month, which could be contributing to the price movement.

Users who staked in the protocol were paid a collective of around $625,000 over the past month. Users can use the LQTY staking pool to stake LQTY tokens and earn protocol fees, which are paid out in LUSD and ETH.

A spokesperson for Liquity said that Bluechip, an independent stablecoin agency, recently gave it an A rating, another factor that might have contributed to the price surge.

Edited by Bradley Keoun.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about