Loopring continues to see astronomical price gains this week as it set a new all time high of $3.04. With a 24 hour trading volume of $6.1 Billion, LRC is the second most traded pair on Binance. Let’s take a look at recent Loopring news and see why the price is rising.
What Is Loopring?
In the simplest terms possible, Loopring is a layer 2 scaling solution for Ethereum. It’s build on top of the Ethereum network and allows users to trade digital assets with far less fees.
One of the biggest problems with Ethereum, especially for new users, is the amount of fees associated with each transaction. Gas fees can cost upwards of $100, which most new traders deem unreasonable.
Loopring aims to bridge that gap with a layer-2 protocol that reduces fees per transaction dramatically.
Why Is Loopring Price Rising?
The biggest news surrounding Loopring is a potential Game Stop partnership. As we reported last night, more leaks surfaced in Loopring’s github code that mentioned Game Stop.
Moreover, Loopring’s former Head of Business Matthew Finestone is currently the Head of Blockchain development for Game Stop. There’s definitely something brewing regarding Game Stop x Loopring and the market is betting on it.
One of the most popular threads on r/cryptocurrency today is about Loopring, titled “Does LRC have a lot of long term potential?”
The comments agreed that as long as ETH continues its rise, so will LRC. However, because LRC is still a relatively unknown crypto compared to Ethereum, there’s potential for higher price gains vs ETH.
On the other hand, it’s clear that many people are buying LRC without really understanding what it is. There was some discussion about whether LRC is actually cheaper to use than ETH, some claiming that using the Loopring exchange, they only paid $0.5 in fees to swap eth to usdt.
Loopring retweeted byron’s tweet earlier today outlining the issues with current NFT marketplaces, and how Ethereum’s Layer 2 can solve them.
Good thing the future of NFTs is on Ethereum Layer2 where we don’t have these problems
Same security guarantees
1000x less cost
— byron.loopring ( B.👾 ) (@macro_diary) November 7, 2021
High fees are the biggest detriment to crypto’s current growth. It increases the barrier to entry and de-incentivizes activity. Loopring has a lot of potential and their layer-2 scaling solution is exactly what the market needs.
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Originally published on The VR Soldier