Loopring ($LRC) has greatly outperformed top meme-inspired cryptocurrencies like Shiba Inu ($SHIB) and Dogecoin ($DOGE) over the last 30 days, and according to some analysts it may not be done moving upward.
As Benzinga reported, LRC is a layer-two scaling solution for the Ethereum network meant to facilitate trading and payments. It’s up over 790% over the last 30 days, while SHIB is up 91% and Dogecoin 10% in the same period.
The price of LRC has been surging even as other cryptocurrencies stop moving upward earlier this week. The surge seemingly started through retail investor interest, after a leak in Loopring’s GitHub repository seemingly indicated a deal with GameStop (NYSE: GME) for a non-fungible token (NFT) marketplace.
Loopring was founded by Daniel Wang, a China-based software engineer who worked at internet companies including Google and JD.com. It conducted an initial coin offering (ICO) in 2017 in which it raised 120,000 ETH, then worth $45 million. Most of the funds were later returned to the public as regulations around ICOs tightened.
The project is software running on Ethereum to allow exchanges to build on top of it and sidestep the slow speeds and high transaction costs associated with decentralized exchanges on Ethereum’s layer-one. LRC uses zero-knowledge rollups, or zkRollups, to offer faster settlements for traders.
A Loopring-powered NFT marketplace would, as such, have much lower fees than other leading Ethereum-based marketplaces.
Transaction fees on Ethereum have surged from a little over $1 last year to at one point over $50 earlier this year as demand for block space on the network surged along with the total value locked in decentralized finance (Defi) platforms and on non-fungible token marketplaces.
Analysts have speculated that LRC’s price will keep moving up as more users find out about its potential to save on gas costs. Based on technical analysis, a Benzinga analyst said LRC is under increased buying pressure, which is outweighing selling pressure.
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