Why is LRC Crypto Doing over 400% Rise?
Following some signs of recovery on Monday, the global crypto market was again under selling pressure on Tuesday. Global cryptocurrency market capitalization reportedly decreased by 2.61%, Up to $1.26 trillion. The most popular currency, Bitcoin, fell by 3.24%. Ethereum has lost 2.30% in the last 24 hours. Most of the top-rated digital tokens today were in the red. However, some Altcoins are buzzing with special price and volume performance.
One such cryptocurrency is Loopring, which has grown by 16% in the last 24 hours; In total, it traded at $0.58 per token, with a massive jump in trading volume. According to available data, LRC cryptocurrency trading volume has increased by more than 400% on exchanges, up to 464 million USD. This volume accounts for almost 60% of the current market capitalization at $792 million.
Despite today’s gains, Loopring lags behind the 52-week high of $3.83 recorded in November last year. The digital token reportedly managed a 1051% ROI from the day it was generated. Loopring’s Ethereum-based cryptocurrency token is trending as GameStop launches its Web3 Ethereum digital wallet, Which uses Loopring’s second-layer ZK-rollup technology. GameStop is a gaming software and consumer electronics retailer that partnered with the project in late March 2022.
In partnership, GameStop has taken advantage of Loopring technology. This allowed the company to deliver relatively expensive and fast transactions to its customers through its Web3 Ethereum wallet. On the other hand, LRC ZK assemblies are also used.
LRC Crypto Future
In order to determine the potential of looping, it is essential to know the crucial aspects of this crypto. It lays out the products, infrastructure and protocols available to the customer for the future of finance. The Crypto project has faith that Ethereum is the foundation of the future of finance. The Loopring whitepaper highlights that Project L2 offers a high-speed, low-commission platform; For payments, swaps, liquidity exchanges and trading. All this without compromising Ethereum security.
The company argues that no exchange or individual can be trapped between an Ethereum-based asset and its customers in terms of security. The Loopring protocol relies solely on zero-knowledge cryptography and Ethereum. Interested crypto investors can buy LRC on many exchanges such as eToro, OKEx, Binance, Bilaxy and Coinbase Pro. CoinMarketCap ranked LRC 65th based on its current market capitalization of $792 million.
By 2020, the average daily trading volume of the entire cryptocurrency market was around $50-200 million. Most of this trading took place on centralized cryptocurrency exchanges – online platforms run by private companies that store consumer funds. They also promote compliance with buy and sell orders. Such platforms have many disadvantages that are common to all, So a new type of exchange emerged – decentralized – to mitigate these disadvantages. However, fully decentralized exchanges are not without their shortcomings.
Loopring’s expected goal is to combine centralized order matching with decentralized on-blockchain order calculation as a hybrid product that gets the best aspects from both centralized and decentralized exchanges. LRC tokens became available to the public during the initial coin offering in 2017. And the Loopring protocol was first deployed on the Ethereum main net in the winter of 2019.
Loopring Route
The founder and current CEO of the Loopring Foundation, which manages the development of the Loopring Protocol, is Daniel Wang, a software engineer and entrepreneur.
Loopring’s main idea is to combine elements of centralized and decentralized cryptocurrency exchanges to create a protocol; Which will take advantage of their unique advantages and eliminate inefficiencies. Centralized exchanges are currently the primary mode of operation of crypto trading services.
Although very popular and convenient, the use of centralized exchanges carries many risks, mainly their guardianship. Because these exchanges keep consumers’ funds between their deposit and withdrawal points, These funds are in danger of being wholly or partially lost to potential hacker attacks, Harmful actors within the exchange, or regulatory interference.
Another major problem with centralized exchanges is the lack of transparency. The fact that trading is not regulated on a blockchain, but is in the internal records of the exchange, makes it possible for the exchange to manipulate the price. It also allows it to use user funds for unauthorized purposes.
In recent years, a new type of trading service, DEX, has emerged to address these issues. Instead of saving consumer funds and processing internal trade, This helps buy-sell orders directly connect and settle trades on a public blockchain. The Loopring protocol seeks to maintain the benefits of decentralized exchanges.
