Loom is a native cryptocurrency of the loom network.Transaction of loom coin can therefore take place from one peer to another upon being verified by the nodes running the loom network.Because of this,it is considered to be a decentralized asset.As a decentralized asset,loom coin was created to become a utility coin of the loom network thus different developers can use the loom to pay for their Dapps running on the loom network as well as to create and issue the tokens of their Dapps on the loom network. In order to transfer your loom coin from one smart contract address to another,you will be required to use the loom coin to pay for the transaction fee so that the transaction can be verified by the validators running the network upon receiving the fee.Different users can use the loom coin to vote to the delegates so that they use the coin to secure the loom network as well as to verify any transaction taking place on the loom network.In January 2018, loom conducted its ICO where one loom was going for $0.076.Towards the beginning of May 2018, the price of one Loom was able to go as high as $0.77 . As 2019 was starting ,the price went again as low as $0.055.Currently,one Loom coin is trading at $0.022.The increase in price from $0.076 to $0.77 was due to the increase in the number of developers joining the loom network to develop their Dapps over there.The drop again to $0.022 was due to the dumping of the earned loom coin to several exchanges by developers.Different Dapps built on the loom network is affecting the price movement of loom coin as follows;
Dapps built on Loom network
Since the launch of loom network as well as loom coin,the price of loom has been seen to be performing well.Towards the beginning of 2018 when loom conducted its ICO,one loom coin was going for $0.076. 4 months later ,the price went as high as $0.77 and later dropped to $0.022. The increase in the price of loom coin has been due to an increase in the number of developers in the loom network thus increasing the utility function of the loom coin.The drop of loom coin back to $0.022 has been due to different developers dumping their earned loom coin in several exchanges.In the near future,if more developers continue to join the loom network,then its utility function will increase thus causing its price to increase.On the other hand,if developers leave the loom network for other platform in the near future,then the loom utility function will decrease thus causing its price to also decrease.Some of the Dapps affecting the price movement of the loom network are being indicated as follows;
a.basechain staking
b.loom market place
c.solare
d.loomcasino
Based on Dapps buit on the tomochain network, the future price of loom is further explained for its bullish and bearish market condition from below
1. Bullish market condition for loom based on Dapps built on the loom network
Loom coin conducted its ICO in early 2018. At that time, one loom coin was going for $0.076.Within a very short period of time,the price of one loom went as high as $0.77 but later dropped to $0.022.The increase in price was due to the increase in the number of developers to develop on the loom network due to favorable condition such as increase in the monetization of their Dapps over there while the decline back to $0.022 was due to different developers as well as users of those Dapps selling their earned loom coin in several exchanges.In the near future,if the monetization of creating over the loom network will increase,then more developers will join the loom network to develop over there thus causing the price to increase much further.In one year time from now,the price can manage to go as high as $0.04.The future price prediction of loom coin as a result of increase in its monetization thus resulting to an increase in the number of developers to develop over is indicated from the candlesticks chart below;
Two points are indicated from the price analysis of loom coin above.There is point A and point B.Before point A,the price of one loom coin can be seen to have gone as high as $0.0222. Developers as well as users of the Dapps created on the loom network then sell their earned loom coin thus causing the price to fall down to point A at a price of $0.0216.Loom network increases its monetization for Dapps thus causing more developers to join the loom network to develop there where they purchase the loom coin to pay for transaction costs of their Dapps as well as to issue the token of their Dapps thus causing the price to rise again to over $0.0222.In the near future,if more developers will join to develop on the loom network,then its price will increase further to above $0.0222. In one year time from now,there is possibility of the loom coin to reach $0.04. As an investor,this is the right time to purchase loom coin
2. Bearish market condition for loom based on Dapps built on the loom network
Loom coin conducted its ICO in early 2018. At that time, one loom coin was going for $0.076.Within a very short period of time,the price of one loom went as high as $0.77 but later dropped to $0.022.The increase in price was due to the increase in the number of developers to develop on the loom network due to favorable condition such as increase in the monetization of their Dapps over there while the decline back to $0.022 was due to different developers as well as users of those Dapps selling their earned loom coin in several exchanges.In the near future,if the monetization of creating over the loom network will decrease due to an increase in the transaction cost,then more developers will exit the loom network and look for other better network to develop over there thus causing the price to decrease much further.In one year time from now,the price can manage to go as low as $0.011 if more developers will exit the loom platform as a result of an increase in the transaction cost.The future price prediction of loom coin as a result of decrease in its monetization due to an increase in the transaction cost thus resulting to a decrease in the number of developers to develop over there and look for other network to develop is indicated from the candlesticks chart below;
Two points are indicated from the price analysis of loom coin above.There is point A and point B.Before point A,the price of one loom coin can be seen to have gone as low as as $0.0216. Developers as well as users of the Dapps created on the loom network then buy the loom coin in order to pay for transaction cost and to create and issue tokens thus causing the price to rise to point A.Loom network monetization program decreases due to an increase in the transaction cost for Dapps created there thus causing more developers to exit the loom network and to look for other network to develop there thus causing the price to fall again to point B at below $0.0216. In the near future,if more developers will exit the loom network and join other network to develop there because their monetization there will be high due to low transaction cost charged,then its price will decline further to below point B . In one year time from now,there is possibility of the loom coin to reach $0.011 if the transaction cost will be increased further thus declining the monetization of Dapps over there. As an investor,if you think there is possibility of increase in transaction cost in the loom network,then this is the right time to sell your loom coin.
Summary
In bullish market condition,loom coin is considered to be moving in an upward market direction while in bearish market condition,it is considered to moving in a downward market direction.When developers are joining the loom network to develop there due to an increase in monetization of Dapps,the price will continue to increase while if more developers are leaving the loom network for other network due to an increase in transaction cost thus declining their Dapp revenue,then the price will decline.
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