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Key Takeaways:
- LTO token jumped 250% in 24 hours after announcing its shift to Coinbase’s Base Layer-2.
- Trading volume exploded 4,800%, signaling strong market interest and buyer conviction.
- Technical indicators show overbought conditions, suggesting a possible short-term pullback.
LTO, the native token of LTO Network, has surged by an astonishing 250% in the last 24 hours, following its announced migration from a Layer-1 blockchain to Coinbase’s Base Layer-2. The sharp price spike, from $0.0039 to $0.18, has drawn attention from both traders and blockchain analysts.
Base Migration Ignites Buying Frenzy
The price rally followed the project’s pivotal shift away from its standalone Layer-1 architecture, which the LTO team deemed “economically unviable.” Instead, the network is transitioning to Base—a Layer-2 blockchain built by Coinbase on Ethereum. The announcement triggered a massive spike in investor interest and liquidity.
“After much deliberation, it’s become clear that continuing as a Layer 1 blockchain simply isn’t economically viable in the long run,” said CEO Rick Schmitz. “That’s why we’ve made a pivotal decision: LTO will transition from its own Layer 1 to BASE.”
This shift, aimed at improving scalability and cost-efficiency, appears to have paid immediate dividends.
Trading Volume Spikes 4,800%
On July 30, LTO’s 24-hour trading volume was under $200,000. Within a day, it exploded to $9.92 million—a staggering 4,800% jump. Technically, rising volume alongside rising prices is a classic bullish signal, indicating strong buyer conviction.
This breakout also coincides with LTO moving above a long-standing downtrend, further fueling upward momentum.
Also Read: XRP vs. Bitcoin – Matt Hamilton Highlights XRP’s 3,400 TPS Advantage And $0.0002 Fees
Warning Signs: RSI Overbought, Volatility Rises
Despite the bullish momentum, some technical indicators suggest the rally may be overextended. The Relative Strength Index (RSI) has surged to 76.88, well into the overbought zone, while price has touched the upper Bollinger Band—a potential reversal signal.
If profit-taking accelerates, a pullback toward $0.032 could be in play. Still, if demand continues to rise following the Base migration, further gains toward $0.094 are possible.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
