Loopring is a zkRollup exchange and payment protocol (Layer-2 scaling solution for Ethereum). It is an automated system that is designed to convert coins of various digital services and aims to solve the problems facing cryptocurrency exchanges in the blockchain ecosystem today. Loopring increases the liquidity of cryptocurrencies and builds the financial system of the future. Another distinctive feature of Loopring is the provision of a tool for conducting token sales.
LRC cryptocurrency is an integral part of the Loopring platform, which is designed to trade tokens based on the ERC20 protocol. Trading on Loopring provides benefits for both exchange users and the platforms themselves, shifting all risks into decentralized smart contracts.
Loopring is different from decentralized exchanges and other protocols. It’s not trying to bypass DEX and centralized exchanges – it wants to connect to them. This creates the potential to increase liquidity in all markets that Loopring implements, and this can neutralize arbitrage through price picking. Thus, the project seems to be both relevant and promising at the moment. Therefore, we suggest taking a look at the LRC metrics.
According to data on CoinMarketCap (as of 28/04/2021):
- LRC price: $0.5076
- Market capitalization: $620,700,876
- Volume (24h): $61,946,323
- Circulating supply: 1,222,767,707 LRC
- Total supply: 1,373,873,440 LRC
- 24 Hour High: $0.5591
- 24 Hour Low: $0.4992
The history of Loopring began back in 2017. In the summer of 2017, the Loopring team held a large-scale token sale, which resulted in $45 million raised from 12,000 investors. The platform was created by a relatively small but experienced team from China. The leading role in its creation and development was played by Daniel Wang, whose main experience was gained as the technical director of several dozen projects of Google.
The Loopring platform was launched in December 2019.
Since 2020, the platform has done large-scale work on the project. Let’s take a closer look at this (from Loopring):
Hebao Wallet App. The Ethereum smart wallet mobile app for non-technical users in mainland China designed to solve the problem of user adoption. The application performs several functions such as support for multiple guardians, meta-transactions, WalletConnect standard, multi-signature wallets, address whitelist, one-click asset transfer.
Hebao DEX. The Hebao Exchange is built on top of Loopring 3.0, which supports the core functionality of Loopring 3.0 as a high-performance DEX order book.
Learn from v3 in Production. Protocol v3 is live on a mainnet and used in production environments.
Improve Composability. The platform has improved the composability of Loopring exchanges with other smart contracts on Ethereum, making it possible to execute additional logic on the chain. This enabled exchanges to implement custom on-chain functionality for users, withdraw funds faster and create exchange wallets similar to the standard Ethereum wallet.
Make Loopring Customizable & Upgradeable. Exchange contracts have become more modular. Exchanges can choose which features they want to support and simply add those modules to the exchange while retaining all of the exchange logic.
R&D into other ZKP systems. The migration to a new verification system circuit-specific trusted setup was made, check time became faster, and scalability increased.
Relayer & Backend
Lightcone 3.0. The main priorities for 2020 were the research and development of the Lightcone repeater. Improvements to automatic deployment, monitoring and signaling systems to enable better implementation of Lightcone’s “relayer-as-a-service” concept. Ultimately, the platform supports 2 to 4 Loopring v3 exchanges.
DEX Browser. DEX Browser provides data request services (mainly on account balances and trading history) for every exchange built on the basis of Loopring 3.0. This tool also allows users to withdraw their funds in case any exchange closes.
Hebao Backend. The platform has developed a closed source backend for the Hebao application to coordinate user activities.
Volume Goals. The main goal was for the average daily trading volume of Loopring DEX to be 50 times that of Ethereum’s largest DEX, Uniswap, by the end of 2020. But at the moment they have not managed to achieve this goal yet.
LRC Staking. 3 types of LRC tokens staking were launched, such as LRC Staking for Protocol Fees, LRC Staking by DEXes for Economic Security and LRC Staking for Protocol Fee Reductions.
Since the platform team will not be carrying out any major protocol update in 2021, they have no plans to publish a detailed roadmap for 2021. This year, Loopring plans to achieve two main goals: the daily number of active users of the wallet reaches several thousand, and the daily volume of transactions reaches a billion dollars.
Crypto community about LRC
Mostly crypto enthusiasts are optimistic about the LRC token. Many of them are betting on its good gains in price up to $1.
LRC token entered the top 15 cryptocurrencies according to the Galaxy rating.
Some crypto experts, in turn, do not see the potential of this cryptocurrency and do not advise buying it. There are also some crypto enthusiasts who treat the token with caution, waiting for its price to drop.
LRC price prediction 2021
We invite you to check the LRC price predictions, which are provided by different services.
According to the information on Trading Beasts, we get the following prediction of the token price (as of 28/04/2021):
Minimum LRC price for 2021: $0.56
Maximum LRC price for 2021: $0.87
Average LRC price for 2021: $0.67
Year-end LRC price predictions 2021:
Minimum expected: $0.59
Maximum expected: $0.87
Average expected: $0.69
The WalletInvestor service offers the following data (as of 28/04/2021):
Minimum LRC price for 2021: $0.213
Maximum LRC price for 2021: $0.799
Average LRC price for 2021: $0.44
Year-end LRC price predictions 2021:
Minimum expected: $0.261
Maximum expected: $0.799
Average expected: $0.484
Based on Digitalcoinprice.com we can see such a change in the price of the token in 2021 (as of 28/04/2021):
Average LRC price 2021: $0.768
Average year-end LRC price expected: $0.855
LRC price prediction 2025
According to experts from WalletInvestor, Loopring is a good cryptocurrency to invest in, as its price is expected to increase to $3.412 by the end of 2025.
In turn, DigitalCoinPrice analysts suggest that the LRC price forecast for 2025 is not so optimistic. They expect the price to rise to $1.81 in February 2025, and in December the price will drop to $1.54.
Of course, long-term forecasts cannot be very reliable, because in addition to a number of factors that affect the price, unpredictable situations can completely change the course of events.
Historical price analysis
All Time High: $2.59 (Jan 09, 2018)
All Time Low: $0.01986 (Dec 18, 2019)
Loopring was launched in 2017. Then its price was less than $0.1. But with the onset of 2018, the price began to grow rapidly and reached its all-time high of $2.59 already in January. A sharp drop in the price of the token to $0.72 followed soon. From January to May 2018, the price ranged from $1.17 to $1.03. Then, for two years, it was stable at $0.1. In 2021, the price of the token began to rise gradually and until today it has not dropped below $0.17.
Consequently, Loopring enables decentralized autonomous cryptocurrency exchanges to operate independently. It also provides increased efficiency and liquidity through innovative cryptographic techniques such as zkRollup and order book. In addition, Loopring is useful for businesses, which want to create cryptocurrency exchanges without regulatory control of user assets. Benefits also guarantee users access to their own funds and additional protection against economic incentives for DEX operators. With these features, Loopring DEX aims to displace centralized exchanges and create a new digital economy that is both efficient and secure.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.