Why ‘Grayscale influence’ may be present in Livepeer [LPT]

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With a 24-hour high of $29.79, LPT made headlines after seeing a 1,000% price increase recently. Fortunately, the rise emerged shortly after Grayscale Investments unveiled five new trusts, one of which was Livepeer LPT. Following Grayscale’s decision to include LPT in its commodity offering, the token rallied nearly 500 percent in the following four days, setting a new ATH.

According to TradingView results, the price of LPT rose from $1.77 on 21 January to $34 the following day.

The abrupt rise to these double digits fueled debate about whether the Grayscale embrace is a fresh catalyst for price rallies. A similar pattern was seen in the past when the ‘Coinbase effect’ sparked price movement. A new listing announcement for MATIC, SKL, and SUSHI on the Coinbase ‘Pro’ website, for example, served as a trigger on the prices of all three tokens.

However, it would be curious to see if potential Grayscale goods allow the underlying asset’s price to rise at the same time.

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It should be remembered that the LPT rally might not be solely due to the ‘Grayscale impact.’ While the spike occurred after the launch, the network has been rising since August of last year, according to the Livepeer explorer. For example, as seen in the image below, the platform saw an increase in consumption and fee volumes in the LPT network.

LPT was trading at $23.42 at the time of publishing, marking a 219.4 percent price surge in the previous seven days. However, in the hourly and monthly timeframes, the token has fallen by 1.8 percent and 16.4 percent, respectively.

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