Cryptocurrencies are, in a new way, the future of investments. With thousands of currencies making an appearance in the crypto marketplace, it may be puzzling to know what sets them apart. A certain altcoin has been gaining quite the recognition lately that’s known as the Loopring coin (LRC).
The Loopring coin was founded by the CEO of the Loopring Foundation, Daniel Wang. It is also recognized for being an Ethereum token. In this article, we inform you more about the Loopring coin, and where it would be at in the year 2022.
The Technology behind the Loopring Coin
Loopring is a software running on the Ethereum network. It is an audited, open sourced, and a non-custodial exchange protocol. It allows users to engage in a non-custodial, order book exchange on the Ethereum network with the use of the zero-knowledge proofs protocol.
Ethereum has a massive amount of transactions on its network. Not having the proper means to process these transactions, could lead to a huge network congestion. As a result, there will be an inflation in transaction fees. Loopring resolves this issue by allowing the users on the network to make off-chain transactions. That allows the on-chain transactions on the Ethereum blockchain to be faster, while decreasing the transaction fees for Loopring users.
Loopring uses a new type of cryptography known as zero-knowledge rollups, or zkRollups. It allows the exchanges made on the Loopring platform to avoid the low speeds and high costs associated with the decentralized exchange on the Ethereum network. The use of zkRollups resulted in faster trade settlements. It also allowed Loopring exchanges to finish all computations outside of Ethereum’s network, resulting in higher speeds and lower costs.
What Makes Loopring Unique?
Loopring is one of the few transpiring protocols for decentralized financing (DeFi). That being said, it’s been claimed that Loopring uses multiple cryptocurrencies alongside its own, the Loopring coin (LRC), to provide for its platform. Most of the trading being done on the crypto market is conducted with the help of centralized crypto exchanges. In return, that leads to the fluctuation of millions of dollars on the daily. Therefore, Loopring’s ultimate goal is to create a hybrid form of exchange combining the elements of centralized and decentralized crypto exchanges. This creates a protocol which enhances the upsides of both exchanges, while eliminating their inefficiencies.
With the hybridized protocol in mind, the Loopring Foundation expects to increase the overall efficiency of order executions. While amplifying the liquidity of decentralized exchanges (DEXs). For this to be achieved, Loopring would be setting trades on the blockchain but would be managing orders in a centralized manner. As well as using batch-processing to combine 16 orders at once into a circular trade rather than following one-to-one trading pairs.
The Loopring Foundation prides itself on having a scalable protocol. With the use of its zkRollup Layer-2 protocol, Loopring can perform two thousand transactions per second. All the while ensuring 100% of the Ethereum network’s security level, with lower costs and faster trades.
Loopring Coin Predictions 2022
The Loopring coin was found in the market on the 30th of August, 2017 with a value of $0.12 USD. By the end of the year it was valued at $0.46 USD. The Loopring coin surpassed the $1 USD mark on January 6th of the year 2018 with a price of $1.05. The all time high for that year was recorded at $1.72 on January 11th. Beyond that point however, the price just went down.
By January 4th of 2019 the Loopring coin was valued at just $0.0414 USD. Later on in the year, Loopring recorded its all time low on December 18th at just $0.0199 USD.
In the entirety of the year 2020, the Loopring coin value kept fluctuating below the price of $0.5 USD. In the year of 2021, the price of the Loopring coin didn’t alter much more than the year 2020. However, by November 4th of 2021 the price of the altcoin reached $1.43 USD. The Loopring coin then recorded its all time high on November 11th of 2021 with the price of $3.2276 USD. It is now valued at $2.9357 USD.
The Loopring coin is expected to be worth $3.6713 USD by January of 2022. With the minimum value being $3.1206 USD and the maximum being $4.589 USD. By June of 2022, the Loopring coin is expected to be at a minimum of $3.1621 USD and a maximum of $4.6501 USD. Within the month of December of year 2022, it’s been predicted that the Loopring coin will be held at a minimum value of $3.2136 USD and a maximum of $4.7259 USD.
That being said, if the Loopring coin has been invested in today, a 9.47% percentage return is expected by the end of the year of 2022.
The Loopring foundation may have come up with an innovative approach for solving inefficiencies stemming from centralized crypto exchanges. Hence why you may think it’s a great idea to invest in it. However, keep it in your consideration that there are other cryptocurrencies on the market which may also have a promising future.
All things considered, be aware of how quick the crypto marketplace can be easily manipulated. Also keep in mind that any predictions made above have been done solely based on our research. Always do your own thorough research on the altcoins you wish to invest in and consider the risks.
Sally is a student of International Business Management and is interested in topics related to blockchain technology. She is an author for gBlogo’s “Crypto World” column and provides insight on topics related to cryptocurrencies and NFTs.