While Ethereum is the leader in the decentralized space, very often the transaction speed and the cost becomes a strong barrier. transitions at an affordable price and over the Ethereum network? Yes, this is when the Loopring enters the space which intends to incentivize the users and enables them to build new types of crypto-asset exchange.
No doubt the platform is working hard to address the issue sometime in the future. What about now, will you pay the same gas fees until the platform rolls out the update??
Here’s when projects like Loopring come to the rescue. It is designed to work on the top of the Ethereum blockchain which offers faster transactions at an affordable cost. The Loopring developers claim 1000 times better throughput than Ethereum and nearly 2025 transactions per second. No doubt many other Ethereum killers are present in the market like Avalanche, Solana, Polkadot, etc but they all are layer 1 solutions and work as independent chains.
On the other hand, Loopring’s Decentralized Exchange is powered by its native token LRC. Here you can trade your favorite tokens at a fraction of the cost compared to Ethereum’s most loved Uniswap exchange. Currently drowning into a deep bearish sea, LRC has consolidated more than the expected levels. And hence a notable breakout may be fast approaching.
What is Loopring(LRC)-In Brief!
Loopring was founded by a software engineer based in China known as Daniel Wang. Further during the 2017 ICO boom, the platform collected 120,000 ETH worth nearly $45 million. But due to tough regulations imposed in China, the collected funds had to be returned.
The platform as mentioned before is built upon the Ethereum network, which carries all other crypto assets including LRC together. Moreover, as per the platform, exchanges can also be built on top of it to counter the popular Uniswap DEX. And this is done using a new version of cryptography called ‘zk-rollups’.
The idea behind zk-rollups is to reduce the number of transactions the platform has to submit to the Ethereum network. And hence focus on increasing speed at reduced costs.
How Does Loopring(LRC) Work
Loopring uses a unique mechanism called zk-rollups which is built to make DeFi space more suitable on Ethereum blockchain. Zk-rollups Or Zero-Knowledge roll-ups is where a program can verify the data without sharing the actual data. Using this technique, Loopring bundles hundreds of transactions into a single one to allow fast and cheap trades on the Ethereum blockchain.
To begin with a trade on a Loopring exchange, one needs to find the smart contract managed by the protocol. Further Loopring moves the necessary transactions onto the Ethereum blockchain and settles it to finalize the trade. These trades are batched to reduce the congestion, cost and increase the speed.
Further, each batch of transactions is added to the Ethereum blockchain which can be later reconstructed. This builds trust with the user that the transactions are genuine. Moreover, the transactions here are completely tamper-proof that cause no harm to the unwanted parties.
Additional Read: Daily Crypto News 20th January, 2022
Will LRC Price Hit $10 in 2022?
Loopring had a silent trend until the 2021 bull rally kicked off. However, the asset failed to hit the $1 milestone then and yet again fell into the same bearish trap. Later during the times when NFT space manifested a gigantic rally in November, LRC price surged like a giant. It leaped long to hit the ATH around $3.8.
Further, the asset underwent a huge downward trajectory and is currently feared to lose the $1 price zone. The previous day’s trade witnessed a tough fight between the bulls and the bears, wherein the bulls stood successful to close the daily trade on a bullish note. Woefully with the beginning of the current day’s trade, a powerful plunge appears to have set in place.
Currently, the LRC price is at $1.159 with a drop of nearly 1.34%. The selling pressure still appears to have mounted and hence one cannot expect any interim relief from the bearish trend. Yet if the market sentiments change slowly then a notable flip may uplift the price above the danger zone. Considering the present price trend, $10 appears pretty distinct but could be achievable.
Additional Read: Loopring Technical Analysis
Factors Impacting LRC Price Today
LRC’s Role on Loopring Platform
LRC is mandatory to carry out key operations on the platform. For instance, one needs to lock a specified amount of LRC to run an exchange on looping. The token is also used to incentivize the proper use of the network. While the staking LRC is always open for any trader.
Loopring Fees Distribution
The fees structure is designed in such a manner that the LRC tokens tend to reduce over time. Nearly 70% of the fees are distributed among the users who stake their tokens. Another 20% is allocated to the Decentralized autonomous organization(DAO). Finally, the remaining 10% is burnt. This means the LRC token tends to deplete on time, enhancing the value for the existing tokens.
Works on Ethereum but Offers More Throughput
As mentioned before, LRC is designed to work on Ethereum, unlike the other chains that work as independent chains. And hence offers faster transactions at a fraction of the cost compared to that of Ethereum.
Unique Features of Loopring
Loopring combines the features of both centralized and decentralized exchanges. The platform manages the order in a centralized manner by combining up to 16 orders instead of 1:1 trading pair. This enables an increase in order execution efficiency and enhanced liquidity on the DEXs.
Where & How to buy Loopring(LRC)
Loopring(LRC) can be easily traded on CoinDCX which is one of the leading cryptocurrency exchanges in India. Here we offer hassle-free smooth trades, quick order placements, unlimited access to charts, etc and many more features. Moreover, the CoinDCX App offers you a unique user experience with a brand new design at a single touch.
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No issues, just download the mobile app on your smartphone and register with the required details. And done!! With bank verification which usually takes a few minutes, you become the proud customer of CoinDCX.
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