Loopring, the layer-2 decentralized exchange (DEX) for Ethereum, has recently announced a change in approach. The platform is going multi-network and expanding its core pillars from three to four. This strategic update aims to enhance the functionality of the Loopring Dapp and attract more users from diverse platforms.
Under the new shift, the Loopring Dapp will consist of two parts: Loopring Pro and Loopring Earn functionalities. Additionally, the Loopring Smart Wallet will become multi-network, allowing users on various supported platforms to securely store their assets. This expansion will enable Loopring Pro Dapp to serve as a portal for decentralized finance (DeFi) users to access the Loopring DEX and other services.
Loopring’s core infrastructure relies on the Loopring zk-Rollups protocol, which enables scaling of layer-2 solutions while leveraging the security of Ethereum. The protocol has been instrumental in processing over 12 million transactions and generating more than $6 billion in trading volume through the latest iteration of the DEX (version 3.6). Furthermore, the DEX has successfully connected over 210,000 layer-2 wallets.
Loopring’s strategy goes beyond the recent update. The team plans to deploy their DEX on platforms like Arbitrum, where it can function as either a layer-2 or layer-3 solution. This strategic move aims to provide users with a highly optimized app-chain experience while expanding and scaling their new core products. The objective is to create more opportunities for DeFi users and attract a broader user base.
Following the announcement, Loopring’s native token, LRC, experienced an uptrend, mirroring the overall market sentiment. However, it is unclear whether the rally in LRC’s price was solely due to the resurgence of Bitcoin and Ethereum. Nevertheless, the token reached new highs in October 2023, increasing 20% from its October lows. Unfortunately, it remains at December 2022 lows and is down 62% from its peak in February 2023, when it traded at around $0.50.
Loopring’s decision to go multi-network and expand its core pillars demonstrates a proactive approach towards attracting more users and enhancing the functionality of their Dapp. By leveraging the Loopring zk-Rollups protocol, the platform has achieved significant transaction volumes and connected a substantial number of layer-2 wallets. Looking ahead, deploying on platforms like Arbitrum will allow Loopring to offer a highly optimized app-chain experience, creating more opportunities for DeFi users. Despite the recent price uptick, the native token, LRC, still faces challenges, as it remains far from its previous highs.