The price of Loopring is up over 26% today, making it the second biggest winner on Crypto.com. With a 24-hour trading volume of $ 1.5 billion, the market is definitely excited about LRC this weekend. Let’s take a closer look at Loopring and LRC, and see why the price is going up.
What is Loopring?
Just to make sure we’re all on the same page, Loopring is a Layer 2 scaling solution for the Ethereum network. It allows transactions and payments to be carried out on the Loopring network with much less costs. It offers the safest, highest throughput and most economical performance on the market.
LRC is the protocol token for the Loopring network, and it is used to entice users to participate in the Loopring ecosystem.
Why is the price of Loopring increasing?
The latest news about Loopring comes straight from the blog of Ethereum founder Vitalik Buterin titled: “Why We Need Wide Adoption of Social Recovery Wallets.”
The article highlights the importance of social recovery options for cryptocurrency wallets, mentioning Loopring several times. In addition, Vitalik then explains the technical details of how the Loopring wallet works in tandem with zkRollups.
There is no doubt that Vitalik’s recent blog post is one of the main reasons for Loopring’s bullish momentum today. After all, the number of projects and pieces that are dying to get a cry from Vitalik can be counted in the thousands.
Additionally, Vitalik’s blog post confirms that Loopring is the real deal, and their Layer 2 solution is exactly what Ethereum needs to solve its high fee issues.
Is Loopring a Good Investment?
With a fully functional Layer 2 application and support from the founder of Ethereum, Loopring looks like a great long-term catch for 2022. As Loopring continues to add more markets to their platform and more and more Users are discovering that you don’t have to pay ridiculously gas fees when trading on the Ethereum network, LRC can easily double in price by the end of the year.
Additionally, LRC is still trading at 74% of its all-time high, meaning that there is still some potential for the price to continue its uptrend.
Disclosure: This is not trading or investment advice. Always do your own research before buying cryptocurrency.
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