Another phenomenal cryptocurrency is on the rise. Loopring, a Layer 2 token running on Ethereum used for trading and payments, surged seven times its worth in the past 30 days and outperformed Ethereum, Dogecoin, and Shiba Inu combined.
Loopring Price Jumps 638% in 30 Days Due to Speculations on Metaverse Usefulness, GameStop Ties
LRC rose 638 percent in the past month, while ETH, DOGE and SHIB climbed 15.18 percent, 33.5 percent and 102.12 percent, respectively, in the same period.
The coin, which allows developers to create decentralized exchanges targeting a global network of users, is currently trading at $2.91, a 5.98 percent drop in the last 24 hours, according CoinDesk's real-time tracker.
Its massive jump is due to speculation about the token's supposed usefulness in the metaverse environment and GameStop-related chatter, analysts said. This led to the coin soaring at an all-time high of around $3 last week, which is twice its value after a week. This made Loopring one of the best performing coins in the crypto market.
Its year-to-date gains stood at 1520.34 percent, Benzinga reported.
Rumors spread about GameStop utilizing Loopring technology to build a marketplace to trade and exchange non-fungible tokens (NFTs). This speculation might have started when a code was discovered at the Loopring GitHub that involved GameStop, Powerbomb Finance co-founder Dennis Hui said in a separate CoinDesk report.
Other investors could have also considered that Loopring would play a large role in the development of the metaverse, which has been recently hyped up by Facebook's rebranding to Meta.
Loopring Benefits: NFT Trading on Ethereum Layer 2, Environment Friendly
Loopring, which was launched in late 2019, seeks to overcome low efficiency and the enormous costs of decentralized exchanges. Being on the Ethereum Layer 2 platform, Loopring integrates zKRollup to attain incredibly high speeds, reaching 2,025 trades per second, while also staying secure, Investing.com reported.
The latest version of Loopring now "supports NFTs for mining, transfers, and trading on Layer-2," an update that aims to "reduce the overall gas cost," Loopring chief technology officer Steve Guo was quoted as saying in the Benzinga report.
Trading Fees as Low as 0.1% for Loopring VIP Users
The Loopring platform also updated its VIP tier system, allowing trading fee discounts that reach as low as 0.1 percent, with developers enjoying free trades and a two-percent rebate on trading volume.
To determine Loopring VIPs, the network calculates user levels by their accumulated 30-day transaction volume and/or the LRC balance of the user's L2 account. These discounts would then increase as users climb higher through the tiers. This new Loopring VIP system is expected to better align and integrate the LRC token utility into the Loopring ecosystem, Investing.com added.
Bullish investors expect Loopring to continue to extend its run through 2022. However, if the token suddenly cools off, a period of consolidation would have Loopring hold on its to its gains to attain subsequent increases.
