The Loopring price has risen 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 certainly excited about the LRC this weekend. Let’s take a closer look at Loopring and LRC, and see why the price is rising.
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 for trading and payments that can be made on the Loopring network with much less fees. It provides the safest, highest throughput and lowest cost performance in the market.
The LRC is the protocol token for the Loopring network and is used to encourage users to participate in the Loopring ecosystem.
Why is the Loopring price rising?
The latest news about Loopring comes straight from Ethereum’s founder, Vitalik Buterin’s blog post, entitled “Why We Need Broad Introduction of Social Recovery Wallets.”
The post outlines the importance of social recovery options for cryptocurrency wallets and mentions Loopring several times. In addition, Vitalik goes on to explain the technical details of how the Loopring wallet works with zkRollups.
There is no doubt that Vitalik’s latest blog post is a major reason for Loopring’s bullish momentum today. After all, the amount of projects and coins that suffer after getting a shoutout from Vitalik is in the thousands.
In addition, Vitalik’s blog post confirms that Loopring is the right product, 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 app and support from Ethereum’s founder, Loopring looks like a good long-term team for 2022. As Loopring continues to add more markets to their platform, and as more users find that you do not have to pay ridiculous gas fees when trading on the Ethereum network, LRC can easily double in price by the end of the year.
Moreover, the LRC is still trading at 74% of the highest level ever, which means that there is still some potential for the price to continue its bullish run.
Disclosure: This is not trading or investment advice. Always do your own research before buying any cryptocurrency.
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