Crypto traders love to punt on token prices, but more are shifting away from centralized versions to non-custodial modes where traders are in control. Loopring is a cut above the rest in this emerging theme, explaining the high level of interest from followers waiting for expert opinion on the Loopring price prediction for 2021.
The trajectory of the LRC price going forward boils down on several factors. One of them is how best-decentralized exchanges and token swapping will perform in 2021.
Most importantly for Loopring traders is whether the exchange will come on top of its competitors, feed off from DeFi energy, and cement its position as one of the leading DEXes in 2021. This, therefore, will directly impact analysts’ LRC price forecast for 2021.
To understand the project and why it is one of the leaders, closely monitored across the board, we must first understand how the trading community found itself in the present position.
First, we can’t take anything away from centralized exchanges.
Crypto Wanted Better Exchanges
DeFi, as far as it is disruptive, is an improvement of the fragilities experienced first-hand by centralized exchanges.
If hackers didn’t siphon millions of cryptocurrencies from platforms such as Binance and others, or exchanges that demand high listing fees, crypto would have been harmonious. The result? Seamless swapping of tokens, pumping exchange tokens.
DeFi or decentralized exchange is a blanket term that attempts to fix errors experienced in centralized versions of traditional financial systems. CEXes are centralized and, therefore, the antithesis of crypto in the first place.
The paradigm shift towards DeFi is a panacea that will eventually fix all the bad in CEXes. Their replacements will be non-custodial, client-facing exchanges fitting for the burgeoning crypto ecosystems, especially in Ethereum.
As DEXes gain a footing—judging from its growing liquidity, Loopring is in the front, spearheading the financial revolution. 2020, can be without thinking twice, be said to the year of Loopring. Record trading volumes, migration to Layer-2, LRC/USD prices racing to new multi-month highs, and an influx of new traders and network users.
Reasons Why Loopring Price Rose in 2020
You may ask yourself why? What catalyzed the LRC price in 2020? The answer lies in the project’s roadmap of the year.
The platform then decided to double-down on Research and Development, zeroing in on Zero-Knowledge Proofs (ZK-Proofs) with the primary goal of “productizing” Loopring. They were also keen on devising products to serve their users, not the other way round.
Understandably, Loopring said the protocol would eventually thrive on their user base. Twelve months down the line, this decision shifted the platform’s position, giving it an edge over other exchanges.
ZKP underpins Loopring, explaining the 700X expansion of trading volumes and drastic improvement. All this is without sacrificing security since Loopring still depends on Ethereum as a base layer.
By the end of January 2021, Loopring had integrated AMM functionality on ZKP, culminating in the Loopring Exchange launch. As an AMM, liquidity providers, just like in Uniswap, are incentivized, earning 0.15 percent of trade volumes as fees.
Beyond ZKP, the Loopring team launched the following products:
- Hebao (Loopring Wallet)—is an open-source mobile wallet baked in with ZKP for non-technical users in China for onboarding new users. It serves as an alternative to MetaMask. Critically, Hebao integrates with Loopring and other mainstream DeFi protocols allowing trading and staking.
- Loopring DEX—this supports some of Loopring core functionalities like high-performance order-book DEX.
There are concerted efforts to improve Loopring’s composability, customizability and making it more upgradable. Chiefly, developers focused on making the exchange’s smart contracts more modular.
Better DeFi, Lower Gas Fees
Since the focus is on trading, the fact that there has been notable refinement and the Loopring Exchange translating to extremely low trading fees for traders is a massive development.
From the off-chain solution, traders can swap tokens confidently with full knowledge that miners of the Ethereum base layer secure them.
Additionally, the launch of Loopring AMM liquidity mining on Layer-2 is commendable. The development team is emphasizing the need to redefine or reworking their model for sustainability. Incentivizing liquidity providers and allowing fast layer-2 to 1 withdrawal is also a feat.
It is also not forgetting that LRC is now available for trading at Coinbase. The exchange is one of the largest and the oldest globally, with most clients in the United States and Europe.
Coinbase doesn’t add any token. Each token must pass several quality hoops. Thus, their decision to list the token reveals the team’s quality and the confidence of the token by the exchange as a project that might empower its client base.
The rise of DeFi, a rigid base layer, and unsustainable Gas fees in Ethereum is primarily why the Loopring user base continues to rise with each passing day.
Loopring’s near feeless trading and quick swapping, using the Ethereum network’s security, highlights the possibilities of DEXes. It is a reason why more are bullish on DeFi, a fact that might see LRC price edge higher.
A Brief History of Loopring
For the uninitiated, Loopring is a decentralized exchange on Ethereum. As an exchange, it falls under the broad DeFi umbrella.
The purpose of Loopring is to allow seamless, secure, and convenient trading of tokens across various exchanges—both centralized and decentralized. Accordingly, Loopring DEX has relatively higher liquidity and technically blockchain agnostic.
Loopring is built on several smart contracts for the best pricing to serve various functions for fast and seamless trading. Some of them include:
- Order contracts to maintain order databases and when trades are canceled.
- Registration contracts that manage services for exchanges that integrates Loopring data
- Stats contracts for price and volumes determination
- Mix-Matched contracts for managing order status, volumes, price, and interaction with other smart contracts.
Notably, what sets Loopring apart is its promise to reduce Gas fees on all exchanges reliant on its rails via ZKPs. The protocol deploys the zero-knowledge rollups (ZKR), a variant of optimistic Rollups but with more privacy, claiming it can process over 2,000 transactions per second.
Loopring supports several cryptocurrencies and has its native currency, LRC.
Loopring (LRC) Price Predictions for 2021
The high Gas fees seen in the tail-end of 2020 is an immediate boost for Loopring DEXes and LRC price. As such, more traders are upbeat, understandably making a positive Loopring price forecast for 2021.
By mid-February 2021, the LRC price was up 18X year-on-year, trading at around $0.80. Nonetheless, traders expect more, explaining that the platform’s roadmap, targets, and ongoing development, not forgetting the explosion of DeFi, provide rocket fuel for LRC.
Their combination of AMM model and incentivizing liquidity providers, just like Uniswap, and even more development makes the Loopring protocol one of the earliest platforms to heed Vitalik Buterin’s rallying call for Layer-2 migration and development.
As the need for cheap trading increases, Loopring liquidity mining pools continue to increase, providing an impetus for LRC bulls.
The only natural, sating question for curious Loopring investors is this: Will the LRC/USD price rally in 2021? Are Loopring buyers in charge?
Here’s the market view:
1. Wallet Investor
Basing their LRC price forecast for 2021 on technical analysis and artificial intelligence, Wallet Investor concludes that LRC is a good investment and is profitable in the long term. Their prediction is for LRC/USD to reach $0.90 by the end of the year and $5 in five years.
2. DigitalCoinPrice LRC Price Prediction for 2021
This site’s analysts are bullish on LRC expecting its prices to nearly double from spot rates to $1.21. These are LRC price forecasts made by experts experienced in technical analysis.
An analysis of Loopring’s future expectations, market cap, prices, and market situation places the LRC/USD price by the end of 2021 at $1.17. Coinswitch’s bullish outlook on the LRC/USD price prediction for 2021, nonetheless, depends on upgrades and general cryptocurrency market conditions.
YouTube LRC Price Predictions for 2021
Away from algorithms, YouTube analysts remain positive on the LRC/USD price in the medium term.
For instance, Crypto Big Boss says the LRC price can print over $4, doubling LRC’s all-time high of around $2.1. He mentions the migration away from mainstream ramps from alternatives. Loopring stands out because of the way its design, low fees, and the need for control. Most importantly, Loopring addresses the need for privacy by using Zero-Knowledge proofs while remaining non-custodial without a third-party having your private details.
Crypto Millionaire Academy says Loopring is big, doing what’s needed as ETH Gas fees rise. The rise of DEXes translates to the need for traders to swap tokens cheaply in a liquid market with a wide variety of tokens. He projects the LRC price will rally above $1 by the end of 2021.
Loopring Price Forecast for 2021 from Twitter
The Loopring fever has also spilled over to Twitter, where traders are excited about Loopring Gas saving capabilities.
One going by the Twitter handle, Harley_Hodler says LRC will hit anywhere between $5 and $5.50:
Price prediction for $lrc $5-5.50
— XRPDX (@Harley_hodler) February 9, 2021
Another one says his LRC price prediction for 2021 is $2:
#lrc price prediction by December 2021 – $2
— Cryptojoebiden (@cryptojoebiden) February 12, 2021
Conclusion: Will Loopring Register More Success in 2021?
DeFi is still nascent, with more room for growth. However, the immediate concern for traders is how best to address the high Gas fees. It seems the $20 average transaction fee will remain as long as Ethereum prices rally.
Therefore, based on the Loopring price prediction for 2021 from analysts across YouTube and Twitter, the platform offers a solution to the fee problem. Note that the LRC price is up 1,800 percent year-to-date. Still, analysts say the Loopring is undervalued.
Accordingly, the LRC/USD price, enjoying the first-mover advantage, will highly likely be one of the top beneficiaries with more participants supplying liquidity.
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