Over the past few weeks, the price of Golem's GLM network token saw a strong rally that pushed the token to a three-year high at $0.65.
The altcoin also underwent a strong pump on Feb. 19, but most of the gains evaporated as Bitcoin (BTC) corrected below $45,000 during the
past three days. Nevertheless, GLM still holds a 230% gain in February
alone.
Golem is an Ethereum-based decentralized application that enables users to rent out computing power resources. Since November 2020, the
project has been migratingfrom GNT to GLM tokens after deploying a new
ERC-20 contract. Although most exchanges supported the move, it is still
possible to find GNT activity and listings.
Golem provides an open-source cloud processing framework for both application registries and transactions. Thus, anyone can share and
aggregate computing resources, as well as create applications using the
network. Ultimately, the solution aims to compete with traditional
centralized cloud services like Amazon Web Services.Golem‘s initial coin
offering took place in November 2016, raising $8.6 million for 820
million GNT tokens. 180 million tokens were retained by the project’s
“Golem Factory” foundation, alongside early contributors and team
members.
The network allows personal computers and large data centers to share resources, and contributors are paid in GMT tokens. According to
Golem, a transaction system settles payments between providers,
requesters and software developers. To protect the host device, all
computations take place in a sandbox environment.
According to the Golem Project blog, its batched transaction approach protects users from Ethereum network congestion and excessive
gas prices. Layer-two scalability is already being offered on the
mainnet using Matter Labs' zk-Sync, which is a zero-knowledge technology
for the payment API.The results of the Golem Gitcoin Hackaton 2020
included a smart contract called the GLM-stake-pool. The contract allows
GLM tokenholders to obtain yield by staking Uniswap LP tokens.
On Feb. 17, Golem also revealed a new testnet release, called Alpha IV. The update allows users to set up long-running tasks instead
of the regular per-use payments. The platform also enables users to
receive funds without initializing an account.
On Feb. 23, Polygon, formerly known as the Matic Network, announced that it would be joining forces with Golem to produce an
off-chain payment driver. This partnership aims to provide a long-term
solution to avoid costly layer-one transactions.
According to the Golem migration website, 44% of the total supply has been converted to GLM. On-chain data shows that activity spiked on
Feb. 19, reaching 1,839 daily active addresses. Curiously, that was the
same day that GLM traded at $0.65, the highest level in three years.
