Loopring price prediction: Will LRC reach $5?

LOOPRING started to gain traction in late October 2021, before soaring in November by more than 400 per cent.

This is mainly down to rumours GameStop is looking to use Loopring technology for an NFT (non-fungible token) marketplace.

But what is Loopring (LRC) and will it reach $5?

Loopring (LRC) is a layer-2 (L2) scaling solution for Ethereum and aims to provide a decentralised way of exchanging digital assets.

Scaling means the project is built on the Ethereum blockchain and aims to help scale Ethereum’s network.

It uses Ethereum’s open source smart contracts to create its own projects.

Loopring says it “builds protocols, infrastructure, and user-facing products for the future of finance”.

By combining aspects of centralised and decentralised exchanges, Loopring aims to create a new exchange which can safely provide fast transactions with low fees.

The Ethereum layer-2 platform settles up to 2,025 trades per second while remaining secure.

Loopring aims to combat issues associated with the two main types of exchanges.

The first type of exchange is a centralised exchange.

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The main issue with centralised exchanges is that investors don’t have direct ownership of their cryptocurrency and if the exchange were to be hacked or subject to regulation, their funds could be lost.

To combat this, people use a decentralised exchange (DEX).

A DEX gives investors full ownership of their cryptocurrency investments.

This is done through the use of wallets, which are a way to safely store tokens away from any single exchange.

While DEXs are safer, high transaction fees and slow transactions can reduce their value.

Loopring aims to solve these issues.

It offers safety by allowing users to store their investments in their own wallets as well as also executing trades in a centralised way which allows it to offer safety and speed.

Loopring has its own wallet which is the “first smart wallet app with L2 scaling, and provides a secure, intuitive, powerful Ethereum experience in your pocket.”

Starting a wallet currently cost over $500.

They come with security features which allow users to lock and recover it if it gets lost or stolen.

With the Loopring wallet, users only pay 1 per cent of Ethereum Layer-1 fees, “for a payment experience comparable to Visa and Paypal,” according to Loopring.

Loopring was founded in 2016 by Daniel Wang, a former technical lead at Google, in China.

In 2017, Loopring conducted an initial coin offering, and raised $45 million.

But, a tightening of regulations in China at the time meant they had to return most of that.

According to Wang, Loopring returned about 80 per cent of the funds raised but continued to develop its exchange with the remaining proceeds.

Since then, two new versions of Loopring have been created, Loopring v2 and Loopring v3.

These new versions meant new fee models and more options for executing trades.

Forecasting site WalletInvestor predicts LRC will finish 2021 trading at around $1.66.

By the end of 2022, they predict LRC will reach $1.98, $2.29 by the end of 2023, $2.62 by the end of 2024 and $2.93 by the end of 2025.

Meanwhile, DigitalCoin predict LRC will finish 2021 trading at $4.05, $4.78 by the end of 2022, $5.85 by the end of 2023, $6.72 by the end of 2024 and $7.95 by the end of 2025.