Filling several requirements in the cryptocurrency community is one method for a project to differentiate itself from the competition and attract new users and liquidity to its ecosystem. Loopring hopes to achieve just that by providing a low-fee EVM-based solution where DeFi and NFT developers and investors may trade.
The layer-two (L2) scaling solution uses zk-Rollups to enable rapid, low-cost transactions, and the project has gained traction during March. According to data from Cointelegraph Markets Pro and TradingView, the price of LRC jumped by 57 percent between March 21 and March 23, rising from $0.78 to $1.23 amid a surge in its 24-hour trading volume to $2.75 billion.
The beta launch of the GameStop NFT marketplace on the Loopring network, the influx of new users, and a fast developing NFT ecosystem are three events that have contributed to the price reversal for LRC.
The March 23 statement by GameStop that it had linked the beta version of its NFT marketplace with the Loopring network was the most significant recent event that contributed to the spike in demand for LRC.
According to GameStop, it picked Loopring to host its NFT marketplace because the network can generate NFTs for a fraction of the cost required on Ethereum, with the average charge being less than $1.
Beta users may start browsing the marketplace and depositing cash immediately in anticipation for the platform’s general launch, which is slated to happen soon.
The spike in new users in the Loopring ecosystem, as indicated by the record-high number of wallets entering the netw, is a second reason putting wind in LRC’s sails.
According to Dune Analytics, the Loopring network’s wallet count climbed from 6,498 on October 30, 2021 to an all-time high of 27,092 on March 25 as the GameStop announcement helped begin a new wave of users.
The recent introduction of the Loopring Smart Wallet, which includes the capacity to mint NFTs and recover a lost account through social recovery and Guardians, has also aided in the process of integrating new users and wallets into the ecosystem.
A third reason boosting LRC’s prognosis is the general expansion of its ecosystem, which includes an NFT community that has already minted over 1 million NFTs.
The daily volume exchanged on Loopring, which witnessed a huge surge in activity following the March 23 GameStop announcement, provides more proof of its expansion.