With the current boom of DEX in the crypto space, the projects based on it are growing. One of them is the Loopring coin (LRC) that recently attracted a lot of attention by tripling its price in a matter of hours. See our LRC price prediction to understand if there is a chance for the bullish rally to continue.
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Loopring Fundamental Analysis
Loopring (LRC) is a native token ERC-20 token of the Loopring open protocol, created to build decentralized exchanges. The project was inspired by the crypto boom in 2020, which caused the average trading volume of the crypto market to increase 4 times compared to the previous period, though the exchanges were mainly happening on the centralized platforms owned by the companies.
Loopring’s development team came up with an idea to design an exchange that will integrate the order matching from centralized platforms with the order settlement from the blockchain-based exchanges to create a service that will include advantages and eliminate disadvantages of both exchanges types. Loopring can proceed up to 16 orders simultaneously instead of a strict one vs. one trading pair.
The project’s final goal is to improve the efficiency of order execution and to increase the liquidity of DEX’s. The network can operate on both Ethereum and Neo blockchains and is expected to soon add the support for Qtum blockchain.
The project was firstly introduced in 2017 by Daniel Wang, a software engineer from China with a lot of prior experience in major tech companies like JD.com and Google. In August of the same year, Initial Coin Offering (ICO) was held. The protocol went live on the Ethereum network in December 2019.
Loopring token is controlled by Loopring protocol’s smart contracts. It can be earned via ring mining, meaning that the protocol combines individual orders into order rings, organizing public order books and recording trading history, and in some cases also transferring the orders to the other relays.
Loopring Live Price Chart
Loopring price was stable throughout the year, following the bullish trend but without significant falls. At the beginning of January, the token was traded for $0.175 but in a few days, it increased in price more than twice and reached $0.48. The correction followed the surge and the token went to the level of $0.34-$0.39 and was slightly bouncing in this range till the end of January.
February started with a new bullish ride of LRC token. Its value reached $0.82 by mid-February, but immediately declined to $0.69 stayed at this level for less than a week, and then returned to sustaining at a price of $0.55.
The price was quite stable till the end of May not rising higher than $0.74 and not falling below $0.43. The crisis of the whole crypto market though didn’t leave LRC price aside and at the beginning of June, it lost in value and was traded for $0.37.
At the end of August, the development team announced new support of Ethereum-based NFT and that influenced LRC value to go up reaching $0.54. After 2 weeks the price was pulled off again and the token was trading for around $0.4 till the beginning of November.
In November the token suddenly skyrocketed multiplying its value and reaching an all-time high of $3.83 on November 10 and despite the following market correction still stays on the same high level.
At the time of publishing LRC token is trading for $2.99 and many supporters believe that the bullish rally will continue. The other analysts aren’t that optimistic and consider LRC as a bad short-term investment.