Every bull market is shaped by a particular trend that catalyzes and sustains the upward trend in asset prices. In late 2020, Ether (ETH) led the way as the Ethereum network saw an increase in activity due to the growing popularity of the decentralized financial sector (DeFi) and the expectation that the altcoin would rebound for the launch of Ethereum 2.0.
As further signs of institutional money entering the cryptocurrency sector mount, the “grayscale bump” has emerged as the latest trend that can spark rallies in assets listed to join the Grayscale family of products. This is exactly what happened to Livepeer (LPT), a decentralized video streaming network and associated token based on Ethereum that was recently added to a new grayscale trust.
Data from Cointelegraph Markets and TradingView show that Livepeer’s price has catapulted more than 1,000% since its release as a sign of interest in grayscale investments, rising from $ 1.77 on Jan. 21 to a new all-time high of $ 34 At the 20th of March.
Shades of gray form an LPT trust relationship
The price rally for LPT began on January 21 when it was revealed that Livepeer was one of the projects Grayscale founded trusts for when the company was researching potential product offerings.
On March 17, Michael Sonnenshein, CEO of Grayscale Investments, helped spark another rally for LPT after posting the following tweet announcing the official launch of new product offerings, including the Grayscale Livepeer Trust:
ANNOUNCEMENT: 5 new products have been added to the @Grayscale range!
Basic attention token $ BAT
Chainlink $ LINK
Decentralized and $ MANA
Filecoin $ FIL
Livepeer $ LPT
Interested? https://t.co/YfK2YUKgCj pic.twitter.com/jLqDph4MEH
– Michael Sonnenshein (@Sonnenshein) March 17, 2021
The announcement sparked another 500% price hike for LPT over the next four days and helped push the token to a new record high.
Network activity shows signs of adoption
While it was the grayscale announcement that might have sparked the LPT rally, data from Livepeer Explorer shows that activity on the network has increased significantly since August 2020, as evidenced by the estimated usage and fee volumes on the platform.
The LPT token offers a variety of functions that are used not only to transfer value, but also the ability to earn passive income or participate in governance votes to control the future of the ecosystem.
Community members also have the option to run a Livepeer node and transcode videos for the network using their GPUs for rewards in the form of ETH and LPT.
As the Internet continues to increase global connectivity and remote working becomes the new norm, video streaming will become a central feature of both work and leisure activities. Livepeer is well positioned to offer a working decentralized video streaming and rendering solution that could lead to further price increases for LPT.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk and you should conduct your own research when making a decision.