Loopring: Use Case and Price Prediction
Loopring, The Ethereum based token is now worth around $3.70. It has been at its peak ever since November and has risen by more than 66%. It works based on a construction called zkRollup, which validates crypto transactions off-chain. On CoinDCX, a cryptocurrency trading platform, Loopring is currently the biggest surging digital coin.
Centralized exchanges are not transparent, cost more, and also carry custodial risks. Although there has been a steady growth in decentralized exchanges (DEXs) like Uniswap (UNI), they are not very efficient. They also have fragmented liquidity.
Loopring’s goal is to let anyone make non-custodial, order book-based exchanges on Ethereum by leveraging zero-knowledge proofs. It will deal with orders in a centralized way, settling all the trades on-chain. It will combine up to 16 orders into circular trades.
By doing so, Loopring hopes to make order executions more efficient and to enhance the liquidity of decentralized exchanges. Loopring can be earned through “ring mining.” If you’re confused what that means — don’t worry. We will get to it below.
What Is Loopring?
Daniel Wang founded Loopring’s token in August 2017. It uses the LRC token and operates on Ethereum’s blockchain. Loopring’s blockchain enables developers to build their decentralized exchanges.
The Loopring token (LRC) is the native token of its protocol and is used to pay fees on L2. Loopring owns its wallet, which is popularly called ‘First Smart Wallet App with L2 scaling”. It delivers a quick and completely secure experience which some might say is more powerful than Ethereum.
Loopring’s Use Cases
LRC is focused on main five use cases:
- Lock up to run a DEX
- Burned in LRC rate
- Fees for relayers/Miners
- For participating in proposals and DAO governance activities
- DEX operators can lower the fees on this DEX
Loopring Price Predictions
Based on history, LRC incurred an identical knock in 2018. In April, its price went down after reaching an all-time peak of $2.19 on January 9, 2018. And then it decreased again in 2019.
By early 2020, the value dropped down to $0.0225 after reaching a peak of $0.019861 that was fixed on December 18, 2018. After DEX’s Beta Debut, the price started to rise rapidly up to almost 300%.
Digitalcoin predicts that Loopring will rise to $5.39 by the end of this year, as far as forecasting is concerned. And by the end of 2024, the price is predicted to rise to $8.94. That seems to be the price prediction that seems to be the most accurate, with Loopring reaching a high of $3.3 USD on Nov 12, before correcting itself a bit.
By the next year, 2022, Wallet Investor predicts that the price of Loopring will go down to $1.86. Now, WalletInvestor predictions aren’t always accurate so it needs to be taken with a grain of salt. With the current bullish trends, Loopring might actually head all the way to $10.
But predictions might not go as planned according to analysis because, in the end, it depends on near and future trends and how long they will continue.