Loopring (LRC)

What is Loopring (LRC)?

The world of cryptocurrency is one that’s filled with numerous types of financial services.

No matter where your interests lie as far as finance is concerned, you can be sure to find some kind of platform that has what you’re looking for, whether it be futures, derivatives, or spot trading.

Or, if you’re more on the passive income end of the spectrum, then there is much to look forward to even in that instance.

However, despite the sheer variety that’s offered here, there is one aspect that warrants some consideration.

For one, most dApps, or decentralized applications, are built on top of Ethereum due to its first-mover status as a smart contract pioneer.

But unfortunately, Ethereum still has a ways to go before becoming a scalable blockchain.

Because of this, many DeFi-centric applications on Ethereum have had the short end of the stick in terms of scalability, resulting in greater transactional costs and slow throughput.

None of which is going to cut it if Ethereum is to expand more globally.

To address that, you have many solutions in the form of Layer 2 (L2) protocols built above Ethereum to ease some of its transactional burdens.

Some of the more popular ones include Polygon, Arbitrum, and Optimism.

However, the one that we’ll be discussing in this article goes by the name of Loopring, and its goals are pretty much the same in that it wants to increase Ethereum’s throughput capabilities.

So what is Loopring exactly? Well, it’s a program made to function above Ethereum’s blockchain.

This implies that Loopring wants to quicken the experience of using Ethereum by processing some of Ethereum’s transactions within its own network.

Just think of it as making a side road off that main highway so that the overall congestion can be reduced.

According to Loopring’s own developers, this will help the protocol attain a throughput that’s around 1,000 times larger than Ethereum’s, with peaks of about 2,025 transactions per second.

Instead of Ethereum’s enormously high fees, Loopring’s transactions can cost under a cent.

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Technical Overview of Loopring

Core Components and Architecture

But how does Loopring achieve its throughput and reduce costs? Why through zkRollups, of course! as we’ll look at below.

Simply put, zk refers to zero knowledge.

This is essentially a method where transactions can be privately processed, which enables parties to prove to one another that something is true, but no kind of extraneous data regarding the transactions themselves is provided.

With zero-knowledge proof, you could know that it’s raining outside without looking out of your window or you could prove to border control agents that you’re capable of entering the country but you won’t need to tell them your address and name.

In other words, zero-knowledge proofs can be vital for cryptocurrency protocols not wanting to leak any kind of information beyond what’s necessary to third parties or being forced to trust central organizations should something go wrong.

So where do rollups fit into all of this? They’re just a new kind of scaling system where batches of transactions can be collected and then “rolled” up into single transactions to be processed on base-layer blockchains like Ethereum.

So, rollups are a method of lowering costs and raising speeds since several transactions may be processed simultaneously, splitting the expenses of single transactions.

Basically speaking, ZK rollups just blend both technologies together.

Loopring refers to it as being the most secure scaling mechanism the industry knows of, whereby users can access their assets in all circumstances.

It’s ideal for applications that need trustlessness, such as decentralized exchanges and lenders.

Not only that, but Loopring has even incorporated a merkle tree structure within its network, which can be used to swiftly assess the reliability of data within a collection.

Much of the components within this structure tend to be hash functions, largely employed within blockchains.

In other words, Merkle trees are mathematical data structures that can represent a summary of every transaction within a block and even comprise the hashes of several blocks of data.

However, there are several ways for Merkle trees to be structured; there can be a separate tree for fees and another one for trading history.

Operational Mechanics

On other exchanges, orders to purchase certain tokens within trading pairs should be matched with other orders to sell those tokens within the exact trading pairs.

However, Loopring, matches and mixes several orders within a circular trading system called an order ring.

Every order ring has like 16 orders and makes a loop where every order may exchange the desired cryptocurrencies without there being a need for opposing orders for their pairs.

This process substantially raises liquidity, with the potential for price improvement and discovery.

LRC Tokenomics

Utility and Role of LRC Tokens

Fueling the entire Loopring network, you have LRC, the network’s native utility token.

It was in 2017 when LRC initially launched and its primary role lies within Loopring’s decentralized exchange, which was released in February 2020.

When one uses the DEX, they need to pay in LRC every time they process a trade.

Around 80% of that money then goes to the liquidity providers, with the remainder being split between the Loopring DAO and insurers.

Supply Dynamics and Distribution

Moving on to a bit of the statistics underlying this token.

Its price is currently valued at around $0.25.

The market capitalization is more than $342 million, the fully diluted valuation is over $344 million, the daily trading volume is more than $21 million, and finally, its TVL, i.e., Total Value Locked, is over $105 million.

As for the supply end of things, its maximum and total supplies are roughly the same with over 1.37 billion tokens.

Its circulating supply, on the other hand, is more than 1.36 billion tokens.

How to Buy LRC Tokens

Setting Up for LRC Purchase

So, you’re looking to get some LRC for yourself? Well, first things first, you’ll need a wallet.

For that, you can either install Loopring’s own wallet, or you can just go ahead and install MetaMask, the go-to wallet for the vast array of applications that exist on Ethereum.

Just go to MetaMask’s own website and install it directly from there.

The process should be pretty straight-forward.

Still, if you’re more of a security-minded person, which you should be since it’s cryptocurrency we’re talking about, you can try some hardware wallets, though those will be more expensive.

Currently, these wallets are the best that the cryptocurrency sector has to offer, as they store your funds offline.

Step-by-Step Guide to Buying LRC

Once you’ve set up your wallet, the next step would be to look for an exchange that supports the token.

If you just want to buy the token with no desire for complex trading, then an exchange like Uniswap should suffice, where you can just connect your wallet, and swap the tokens you already own for some LRC.

However, that will change if you don’t have any tokens whatsoever or if you do in fact want access to some complex trading mechanics.

Then, something like Binance will be enough.

You can directly buy some LRC tokens through its fiat options and then use them in various ways through its spot, futures, or derivative markets.

Loopring’s Integration in DeFi

Loopring’s role within DeFI is something that cannot be understated.

If DeFi is to achieve the goals that are expected of it, then scalability coupled with privacy is a must.

You cannot factor in the long term for exchanges that have less throughout and unrealistically higher fees.

Things need to be a lot quicker and cheaper if DeFi is to accomplish mass adoption.

In other words, Loopring, along with a couple of other L2 solutions are what’s needed for the industry to truly expand.

Future Prospects of Loopring

If you’re wondering about the future of this network, like a roadmap or something, then there is a ton that Loopring has in store for this year, i.e., 2024.

You have the Loopring Portal, a product that seeks to bring CEX-like trading environments, more mainnet expansions, a browser extension, smart agents plus bots, and more.

So as far as features go, that should be pretty much it.

Still, if you’re more of an investment-minded person, then you should be aware of how volatile the token can be, and the fact that this token has failed to gain any significant momentum from the recent bullish sentiments permeating the sector, which saw BTC reach more than $70,000.

Conclusion: The Impact of Loopring on the Crypto Market

Within the cryptocurrency sector, having an L2 network can be an amazing plus if done right, especially if it’s Ethereum we’re talking about.

Loopring is one such network among the sea of L2s that exist out there, and since Ethereum hasn’t managed to scale yet, its impact within the DeFi or cryptocurrency market will likely be felt.

After all, in the realm of cryptocurrency, there is always a need for higher throughput and cheaper fees, both of which Loopring seems to have under its belt.

We Coin-Labs.com provides only objective information about Loopring (LRC).
Therefore, we are not responsible for the investment decision in Loopring (LRC) and the resulting loss.

Loopring (LRC) Basics

Here are some factors that investors should consider before investing in Loopring (LRC).

Cryptocurrency Features	Loopring (LRC) (LRC)
Publisher or Developers	Loopring Technology Limited
Headquarters (Registration Number)
Symbol	LRC
Platform
Published Date (CMC Registration)	2024-11-01
Max Supply	No limit

Reliability Score of Loopring (LRC) in 2024

These are indexes mesuring the investment reliability of Loopring (LRC) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 10 Exchanges
Number of Available Pairs Worldwide	370 Pairs
Market Cap of the Cryptocurrency	308,881,220 USD (Rank #147)

The table above shows the result of investment suitability evaluation for Loopring (LRC).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Loopring (LRC) Price

Here are the price and recent trading volume of Loopring (LRC). (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of Loopring (LRC)
Loopring (LRC) Price	0.120 USD
Price Change 24h	0.45%
Price Change 7d	-3.67%
Trading Volume 24h	9,593,754 USD
Trading Volume Change 24h	-0.29%

Cryptocurrency Metadata

You can check the development status and social media information of Loopring (LRC) through the links in the table below.

Metadata Source	URL
🌎 Official Website	https://loopring.org
📖 White Paper	https://github.com/Loopring/protocols/blob/master/packages/loopring_v3/DESIGN.md
🛰️ Source Code (GitHub)	https://github.com/loopring
🐦 Twitter	https://twitter.com/loopringorg
🤖 Reddit	https://reddit.com/r/loopringorg
🎺 Message Board	https://medium.com/loopring-protocol

Where to Buy Loopring (LRC)

Here are the top ten world crypto exchanges where traders can buy Loopring (LRC) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Listed	https://www.binance.com/en/trade/LRC_USDT
Coinbase	Listed	https://exchange.coinbase.com/trade/LRC-USD
Kraken	Listed	https://pro.kraken.com/app/trade/lrc-usd
KuCoin	Listed	https://www.kucoin.com/trade/LRC-USDT
Bitfinex	Listed	https://trading.bitfinex.com/t/LRC:USD?type=exchange
OKX	Listed	https://www.okx.com/trade-spot/lrc-usdt
Huobi	Listed	https://www.htx.com/trade/lrc_usdt
Bitstamp	Listed	https://www.bitstamp.net/markets/lrc/usd/
Bybit	Listed	https://www.bybit.com/en/trade/spot/LRC/USDT
Gate.io	Listed	https://www.gate.io/trade/LRC_USDT

Frequently Asked Questions