Crypto investors are racing to find the next hot cryptocurrency before it rockets to the moon, and are turning over every stone to find any nugget of information—especially price predictions.
One cryptocurrency that’s popping up on forums and radars is Loopring (LRC). Where's LRC heading?
Loopring is a decentralized exchange protocol where traders transact various crypto assets across blockchains without relinquishing their private keys to the custodians of centralized exchanges. Loopring uses smart-contract algorithms on the Ethereum blockchain to facilitate crypto transactions without human involvement.
To increase transaction output while providing the security of the platform, Loopring uses a protocol called zkRollup, a secondary blockchain layered atop the main Ethereum chain.
The secondary chain can be used to perform transaction computations, while the primary chain can be saved to store data. Instead of processing each transaction in the main chain, the zkRollup protocol can process transactions in batches, and then relay the results to the main chain. As a result, Loopring can pool hundreds of transactions across several blockchains and maintain robust security.
Loopring can process up to 2,025 trades per second. Additionally, it charges less than $0.01 per trade, as opposed to the several dollars the more popular platforms charge. This may help Loopring become a model for facilitating high-frequency trading algorithms.
Increasing output capacity while maintaining robust security is something that has been challenging the crypto world for some time. With increased hacking and ransomware, cryptocurrency’s security has come into question. If Loopring can address both issues, it could prove to be a formidable entity in the crypto space.
Is Loopring a good investment?
When it comes to investing, it can be challenging to pinpoint the next big cryptocurrency. Many crypto influencers clog feeds with insider tips and rumors of the next Dogecoin or Ethereum. While there are some signs of a strong crypto candidate investors can look out for, the area is still highly speculative and volatile. It’s just as difficult to predict with confidence where a particular cryptocurrency will end up in six, 12, or 18 months.
Most recently, LRC has mirrored much of the market. It hovered between $0.02 and $0.04 in early 2020 before increasing slightly toward the end of the year. LRC rode the wave that lifted most cryptocurrencies during the first few months of 2021 before coming back down in recent weeks.
LRC is currently trading around $0.27. Some analysts expect the token to double in value by the end of the year. However, most price predictions for LRC don’t have it surpassing $1 for another few years.