LRC Price Update: What Is Loopring?
According to the market data of Gate.io, the LRC token is currently priced at $0.106, with a 24-hour increase of 4.73%. The LRC token has now achieved 100% circulation, with a market capitalization of approximately $145 million, ranking 268th in the overall market. During the cryptocurrency bull market at the end of 2021, LRC once reached a historical high of $3.4, and the current price has dropped by over 90% from the historical high point.
What is the Loopring project?
Loopring was founded in 2017 and is the first Layer2 protocol in the Ethereum ecosystem to implement zkRollup technology, dedicated to solving the core pain points of slow on-chain transaction speed and high costs. Its technical architecture consists of three main modules:
- Zero-Knowledge Proof System: Using zk-SNARKs technology, thousands of transactions are compressed into a single proof, achieving a TPS of 2025 transactions per second (theoretical value), with actual transaction confirmation time shortened to within 30 seconds;
- Decentralized matching engine: using the ring trading matching algorithm to achieve batch settlement between multiple assets, greatly improving liquidity utilization.
- Asset security model: Using an on-chain data availability solution, even if the operator fails, users can still extract assets through Merkle tree proof.
Compared to AMM protocols like Uniswap, Loopring’s order book model supports professional functions such as limit orders, stop orders, etc., with extremely low Gas fees, saving over 95% of costs for high-frequency traders. According to the latest official X update, at the beginning of this month Loopring DeFi has been deployed to the Base chain.
LRC token
LRC token is the governance token of the Loopring ecosystem, currently 100% in circulation (1.37 billion tokens), with its value capture mechanism including:
- Protocol fee deduction: Enjoy up to 20% discount on transaction fees when using LRC for payment.
- Liquidity incentives: Providing liquidity by staking LRC can earn fee sharing rewards.
- Governance Voting Rights: Holders participate in key decisions such as zkRollup parameter adjustments
Market data reveals intense volatility: in the 2021 GameStop event, due to rumors of collaboration in the NFT market, LRC price From $0.38 to $3.4 (an increase of 795%). However, with the fierce competition in Layer2, the current price has fallen by 96.8% from its peak, and its market value ranking has slipped to 268th. It is worth noting that according to on-chain holding addresses, 93% of the addresses holding LRC tokens have held them for over 1 year, indicating that long-term holders are more prevalent in LRC.
Loopring Future Outlook
As the earliest Layer2 protocol in the Ethereum ecosystem to adopt zkRollup technology, Loopring has been committed to solving the efficiency and cost issues of on-chain transactions since 2017. Its native token LRC has retraced over 96% from the high point of the 2021 bull market, but still attracts a large number of long-term holders - 93% of the holding addresses have held for over a year.
Loopring’s technical advantage lies in its combination of zero-knowledge proofs, decentralized matching, and on-chain asset security mechanisms, which ensures performance while providing professional trading functions. It has recently been deployed on the Base chain, demonstrating cross-chain expansion potential. The LRC token has practical utility, as it can be used to offset fees, participate in governance, and receive liquidity mining rewards. Although currently ranked 268th in market capitalization, with the recovery of the DeFi market and widespread application of zkRollup, Loopring is expected to regain market attention. In the future, the upward potential of LRC will be closely related to protocol user growth and on-chain trading activity. If the ecosystem continues to expand, LRC may undergo a new round of valuation reassessment.
