Golem (GLM) price rallies 230% to hit a 3-year high after protocol upgrade

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Over the previous few weeks Golem (GLM) value noticed a powerful rally which pushed the token to a 3-year excessive at $0.65. 

The altcoin additionally underwent a powerful pump on Feb. 19, however a lot of the beneficial properties evaporated as Bitcoin (BTC) corrected under $45,000 over the previous three days. However, GLM nonetheless holds a 230% acquire in February alone.

Golem is an Ethereum decentralized software that allows customers to lease out computing-power assets. Since November 2020 the challenge has been migrating from GNT to GLM token after deploying a brand new ERC-20 contract. Though most exchanges supported the transfer, it’s nonetheless doable to search out GNT exercise and listings.

Golem gives an open-source cloud processing framework for each software registries and transactions. Thus, anybody can share and combination computing assets, in addition to create functions utilizing the community. In the end, the answer goals to compete with conventional centralized cloud providers like Amazon AWS.

Golem (GLM) token / USD at Binance. Supply: TradingView

Golem’s ICO befell in November 2016, elevating $8.6 million for 820 million GMT tokens. 180 million tokens had been retained by the challenge’s ‘Golem Manufacturing unit’ basis, together with early contributors and group members.

The community permits private computer systems and enormous information facilities to share assets and contributors are paid in GMT tokens. Based on Golem, a transaction system settles funds between suppliers, requesters, and software program builders. To guard the host system, all computations happen in a sandbox surroundings.

Based on the Golem Venture weblog, its batched transaction method protects customers from Ethereum community congestion and extreme gasoline costs. Layer-2 scalability is already being provided on the mainnet utilizing Matter Labs’ zkSync which is a zero-knowledge know-how for the cost API.

Partnerships and protocol testnets again Golem’s uptrend

The outcomes of the Golem Gitcoin Hackaton 2020 included a sensible contract referred to as the GLM-stake-pool. The contract permits GLM token holders to acquire yield by staking Uniswap LP tokens.

On Feb. 17 Golem additionally revealed a new testnet release, called Alpha IV. The replace permits customers to arrange long-running duties as an alternative of the common per-use funds. The platform additionally permits customers to obtain funds with out initializing an account.

On Feb. 23, Polygon (MATIC), previously often called the Matic Community, introduced that it might be joining forces with Golem to produce an off-chain payment driver. This partnership goals to offer a long-term resolution to keep away from pricey Layer-1 transactions.

On-chain information registers a pointy spike in energetic addresses and transfers

Based on the Golem migration website, 44% of the overall provide has been transformed to GLM. On-chain information exhibits that exercise spiked on Feb. 19, reaching 1,839 day by day energetic addresses. Curiously, that was the identical day that GLM value traded at $0.65, the best degree in three years.

GLM day by day transfers and distinctive addresses. Supply: etherscan.io

Though the community shows potential, there are just a few functions out there and they don’t seem to be very energetic. The present functions are video transcoders, bulk picture editors, a Sudoku recreation and some information evaluation and optimization instruments.

Whereas there seems to be potential within the challenge’s product, the group could have to safe an enterprise-level partnership to ensure that GLM to achieve sustainable traction.

It’s practically not possible for the common cryptocurrency dealer to guage how Golem’s resolution compares to Amazon AWS and the opposite top-level cloud providers suppliers that it goals to compete in opposition to. Thus, the GLM token upside appears restricted till such affirmation occurs via real-world use circumstances.

The views and opinions expressed listed here are solely these of the author and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer includes danger. You need to conduct your individual analysis when making a choice.