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Highlights
- Loopring (LRC) is a decentralised exchange protocol built on the Ethereum network, allowing users to trade across cryptocurrency exchanges.
- The Loopring protocol was first deployed on the Ethereum main net in December 2019.
- At the time of writing (BST 12:30 pm), LRC was up by 41.83%.
Loopring (LRC) is a decentralised exchange protocol built on the Ethereum network, allowing users to trade across cryptocurrency exchanges. Loopring’s primary goal is to create a hybrid model where both centralised order matching is clubbed with the decentralised on-blockchain order settlement to enjoy the benefits from both. This is beneficial for traders, institutions and other market participants who want to shield themselves from counterparty risks and reduce the trading costs.
Besides, through Loopring a greater trust factor gets generated between various blockchains and exchanges as the trading members have control over their funds. While the LRC tokens were made public as an ICO in August 2017, the Loopring protocol was first used on the Ethereum main net in December 2019.
How does LRC work?
One of the advantages of using Loopring is that traders don’t have to deposit funds into an exchange to start trading. In Loopring, the funds always remain in the user’s wallet, giving the users complete autonomy over the funds. So, the user can either increase an order, cancel or reduce the amount of investing before an order is executed. Besides, one also has the freedom to move funds from the wallet. In this protocol, miners will be alerted about the wallet finance before matching the order, making it a smooth process.
Even though it is increasingly gaining popularity, it has its fair share of risks as well. One of the significant risks it faces is hackers inside the exchange or regulatory intervention. Another problem is that it lacks transparency as the trades is subject to price manipulation by the exchanges.
How has Loopring fared in the market?
LRC is ranked 113 on CoinMarketCap. According to CoinMarketCap, the LRC traded in healthy green at US $0.5189 with a 24-hour trading volume of US $1,63,00,63,449. At the time of writing (BST 12:30 pm), LRC was up by 41.83% in the last 24 hours. LRC currently has a live market cap of US $67,99,31,579. It has a circulating supply of 1,32,03,34,861 LRC coins with a maximum supply of 1,37,45,13,896 LRC coins.
Market scenario wise, it had a fruitful 2018 and 2019. But in 2020, the prices of Loopring dropped, and in 2021 it has shown a slight increase. Experts believe that Loopring Token could have a healthy 2022.
Conclusion
Loopring, unlike others, is not looking to beat DEX (decentralised exchanges) and centralised exchanges. In fact, by connecting the centralised exchanges with DEX, it ensures liquidity as well. Flexibility is the main MO, which provides market participants with more options for finalising the order through multiple avenues. With DeFi becoming more popular with each passing day, the Loopring protocol is only expected to gain prominence amongst the crypto players.
